Asked on 27 Dec 2018
Some people say now, but for me, who just joined the workforce not long ago, how do I get to do so? And some others say once you're more settled in your adulthood. What will your advice be?
My only regret is that I didn't plan my retirement 10 years ago when I started my first job, it is better to start now (or yesterday) than tomorrow...
it doesn't mean that you have to compromise your lifestyle when you start planning your retirement now, it just means that you should have a clear long term goal and you start working towards it.
When you are more settled. Focus on what's ahead of you first. Your career and your own development. You can check my video on it
As early as you can.
If you only start planning for retirement when you are about to retire, then there is not much that can be done to grow your nest egg.
Time is a crucial element in growing wealth and there is no better time than now. Of course, one has to factor in other big life stages like buying house, married, kids etc so these might be a higher priority. But always keep retirement planning in sight.
I think it really depends on what you want to achieve.
If you are looking for big house, big car, country club membership etc, you might want to actively focus on getting more income as you go along your career.
If you are contented with HDB, not too much luxuries, simple life for retirement, you can consider setting targets now. When you want to get married. Etc etc
The best way though, is live below your means, achieve Financial independence early, and your retirement is all set.
Now if you can, and as aggressively as you can. You won't want to be unable to retire at 65 or whatever is the statutory retirement at that point in time. Planning early (like at your current age) gives you a choice of retiring much earlier as well. Forget the use of wealth management products in the market; you won't get anywhere with them. Too costly, will require huge capital to get to a decent retirement sum and the time horizon needed is far too long. Learn how to invest on your own, find a way to build passive income that can replace your active income, and you are set.
As early as possible. Now, if possible. How much do you forsee yourself spending per month, after retirement? Then work backwards. Alternatively, budget your finances now and save/invest as much as you can, or try to raise your income as much as possible.