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6 Tips for Saving Enough for Retirement

6 Tips for saving enough for retirement

Retirement may seem like a long way away, but saving for retirement now could mean the difference between enjoying life comfortably or battling to survive in your later year.

Saving for retirement isn’t only for those nearing their twilight years. Preparing for your retirement now, no matter your age, with these few tips can be the difference between really enjoying yourself and just getting by.

Saving for Retirement

1. Start now

Start saving and planning for your retirement ASAP. And be dedicated. The sooner you start, the more you’ll save: don’t underestimate the power of compound interest. You can always increase your contributions when more cash is freed up later on.

2. Pay yourself first

Make your retirement contributions automatic each month. This way you’ll grow your nest egg without having to think too much about it.

3. Stay informed

If your company doesn’t already offer you a pension or provident fund, there are many other tax-savvy savings and investment options you can take up or add to your retirement plan. A retirement annuity (RA) is one of them, as is a Tax-Free Fixed Deposit account.

Diversifying your investment portfolio and spreading your funds across different assets, sectors and even geographic regions can also help your funds grow. Periodically reassess your portfolio. This will help ensure your retirement plan is on target.

4. Pay off your debt

It’s easier to save for your retirement when you don’t have any other debts looming overhead. By the time you’re ready to retire, try to have all your major debts – student and home loans – paid off.

5. Don’t touch your savings

Cashing in your retirement savings early will cause you to lose interest as well as any tax benefits, you may even have to pay withdrawal penalties.

If you change jobs, consider re-investing your retirement savings in your current plan, or roll them over to your new employer’s retirement fund.

6. Speak to a professional

Before making any commitments, speak to a financial planner to know all your options as well as how to boost your existing plans.

Next step

Go to our financial planning page to explore your retirement options, or head to the retirement section of the Community and use the comments field to chat to customers and consultants.