Are your retirement plans on track for success?
While everyone has different plans for their retirement, the one retirement goal everyone shares is a need for an appropriate level of retirement savings. And with life expectancies on the rise and people spending more years in retirement the need for adequate retirement savings is more important than ever.
Plan ahead for the lifestyle you want
How much do you need to save for your retirement? The answer to that question is as individual as you are. Different retirement lifestyles have different financial requirements. The more specific you can be about the type of retirement lifestyle you want, the easier it is to calculate how much you need to save to make it happen.
For example, if you're planning to travel, you'll need more money than someone who is planning to spend more time in the country. Or if you plan on working part-time in retirement, you'll need to save less than someone who will be relying solely on the income they generate from pensions and savings.
While many retirement planners estimate that you need between 70% and 80% of your pre-retirement income to live comfortably in retirement, that figure will vary considerably by individual. If you need help in determining how much money you'll need to save, we can help you develop a customized retirement savings plan based on your lifestyle goals and personal financial situation.
What you should be doing now
If you want the freedom to pursue your retirement dreams, you can put the odds of success in your favour by being disciplined now.
Achieve retirement goals through regular investing
Once you've determined how much you need to save for retirement, you'll need a financial plan to make it happen.
One of the most effective ways of preparing for retirement is through regular investing. By making regular pre-authorized contributions to a financial plan, you not only pay yourself first before having second thoughts about spending the money, you also ensure that your savings are automatically invested and begin earning interest as soon as you make them each month.
Increase your monthly savings over time: Once you've started saving, you should always look for opportunities to increase the amount over time. So if you get a bonus or salary increase, then try to match it with a similar increase in your savings. If your expenses decrease, then try to increase your savings by the same amount. For example if you've now paid off your car-loan, and no longer have the monthly loan payment, then increase your savings by the amount of the payment.
Invest smarter. Look for tax-advantaged plans to increase the value of your savings. In Jamaica, you can make tax-deductible contributions to a Pension Plan or Retirement Scheme, which helps to lower your taxes. In addition, the earnings in these Plans/Schemes are tax-free during your accumulation years! So look for these tax-advantaged plans, and try to utilize the full contribution room.
Be flexible. You'll need to continually revise your plan's projections in light of your evolving goals, changes to your employment situation, market volatility (positive and negative), and larger social and economic trends.
In Scotia Insurance, our sales agents are able to create a financial plan that is suitable for your unique needs, so call or visit our offices today at:
Scotia Insurance: 1-888-GO SJLIC (467-5542) or e-mail: email@example.com