Lock in all Aspects of Your Retirement

You’ve been working so hard, earning your own money and hopefully setting some aside in savings. But imagine the situation that paycheck ceases from one day to the next, the day you retire in the far-off future.

Now’s the time to start contemplating and organising how you’ll fund your retirement years. With some forethought, it’s easy to set up structures that will see some other forms of income flowing in after your working life is over.

The most important thing is to plan now so that retirement can be a time of leisure and contentedness, rather than a stressful period dominated by financial worries.

Lock in Income during your Retirement

Some ways that you can guarantee an income flow during your retirement include pensions, social security insurance, reverse mortgages and longevity insurance. Organisations often provide pensions as employee incentives that kick in after retirement.

A real-life scenario is when an employee is granted a percentage of his or her contributions during his or her working life. These benefits increase the longer the employee stays with the company. Social security insurance is usually provided by the government of an organisation’s home country.

To qualify, you must accrue a certain number of credits by retirement age. These credits are racked up based on income level. For instance, you may gain one credit for every $1250 that you earn up to retirement age. Credits will always be carried forward regardless of any extended period of unemployment or job transfer.

A reverse mortgage is a financial vehicle that allows you to take a loan against what you’ve already repaid towards accrued equity of your house. Longevity insurance is a contract entitling a retiree to receive guaranteed payments based on earlier financial investments aimed at meeting specific financial goals.

For example, you might choose to invest $450,000 in purchasing a property at the age of 40, which could lead you to receive approximately $60,000 annually during retirement.

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The four vehicles mentioned above do guarantee payouts after retirement, but they may not always be the most profitable. It has been observed that an increasing number of companies do actually offer post-retirement income plans with decreasing benefits as well as forecasting quite low payouts in future. Pensions can vary depending on the inflation rate.

The disadvantage of social security insurance is that the credit eligibility level will change a lot as time goes by.

For instance, if $1500 income accrues one credit for you today, in the next five years or so it could well be that you’ll need to earn $4000 to receive one credit. The drawback of a reverse mortgage is that associated fees are relatively high and the scope of retaining or passing on the house within an estate is quite limited.

The downside of longevity insurance is that the level of payouts during retirement depends on how long you stay in the workforce. The longer you wait to retire, the higher the payment will be. This is why financial experts recommend opening an investment and retirement account.

Here you can utilise your assets and part of your savings to guarantee quarterly or annual returns. You can also endeavour to increase your assets and savings each year to increase your returns.

However, you still need to consider the rate of inflation and hold on to the returns for your old age. Looking into annuities is another option for a retired individual who’s looking for increased benefits.

These can provide a stronger guarantee of benefit income after retirement. Annuities ensure payments for all of your golden years based on a difference between fixed or variable annuity payments.

Fixed annuities depend on the investments made before retirement while variable annuities depend on the performance of those investments (how financially beneficial were they?).

Nothing beats asset diversification and individual savings funds for retirement. All you need is strong self-control to watch out for how much of your income you spend and how much you opt to devote to saving for retirement.

Ways To Guarantee You Have A Debt-Free Retirement

Debts can be nasty to struggle with in retirement. Simply put, one needs to stick to solid financial goals in order to eliminate debts by retirement time. The path to meeting these goals involves careful management of income and expenditure.

Childcare, for example, can be very costly. Alternative more affordable solutions might include getting help from nearby relatives or moving to a region where childcare costs are low. It’s wise to always have a savings fund to cover emergency situations so that you don’t get pulled deeper into debt.

Control your impulsive shopping urges by remembering that your small sacrifice today will help you lead a more secure and happy life in the future.

Ways To Guarantee Your Retirement: Lock in a Grip on the Economy

The economy can be a highly unpredictable element at work within the framework of your retirement planning. That’s why it’s vital that you make wise investments and soldier on in your career for as long as you can. Inflation is the biggest worry for the economy.

One really needs to take into account the impact of inflation both before and after retirement in order to guarantee blissful golden years. An unpredictable economy can affect one’s market investments so it’s even more important not to forget the impact which the state of the economy can have on you.

This doesn’t mean that you shouldn’t take any financial risk at all. In fact, it’s crucial that you do take risks, but make sure they are sensibly chosen. An unstable economy can often lead to unemployment and company layoffs; however, you can overcome these setbacks by continually enhancing your professional skills.

Ways To Guarantee Your Retirement: Take Care of Your Relationships

For most women, nurturing relationships is probably a #1 priority, but it’s still crucial to remember that you deserve the very best in life. Women’s nurturing nature shouldn’t be an Achilles’ heel that deprives them of enjoyment of their retirement days.

It’s important to ensure that your retirement funds or post-retirement income are not spent on your dear ones. Don’t pay for your children’s college when there are student loans available. One does have a family responsibility for parents in their old age, so opt for long-term care insurance for your elders rather than take on the entire financial burden from your own assets.

An unexpected divorce can mean a huge financial setback for any woman. This is why you must always be sure to maintain a firm grip on your own independent financial goals.

This is best done within a marriage by keeping individual bank accounts, building a personal line of credit and documenting a record of all your owned assets.

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Founder @ The New Savvy
Anna Haotanto is the Advisor (former CEO) of The New Savvy. She is currently the COO of ABZD Capital and the CMO of Gourmet Food Holdings, an investment firm focusing on opportunities in the global F&B industry. She is part of the founding committee of the Singapore FinTech Association and heads the Women In FinTech and Partnership Committee. Anna is the President of the Singapore Management University Women Alumni. Anna invests and sits on the board of a few startups. Anna is also part of the Singapore Chinese Chamber of Commerce & Industry Career Women’s Group executive committee. Anna’s story is featured on Millionaire Minds on Channel NewsAsia. She hosts TV shows and events, namely for Channel NewsAsia’s “The Millennial Investor” and “Challenge Tomorrow”, a FinTech documentary. Anna was awarded “Her Times Youth Award” at the Rising50 Women Empowerment Gala, organised by the Indonesian Embassy of Singapore. The award was presented by His Excellency Ngurah Swajaya. She was also awarded Founder of the Year for ASEAN Rice Bowl Startup Awards. She was also awarded the Women Empowerment Award by the Asian Business & Social Forum. Anna has been awarded LinkedIn Power Profiles for founders (2018, 2017), Tatler Gen T, The Peak’s Trailblazers under 40 and a nominee for the Women of The Future award by Aviva


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