What the expert says
CREATING a regular stream of income is key to retirement planning, said Fariz Rashid, financial planner for financial services at Manulife Singapore.
One can use the Manulife Calculator at www.manuliferetirement.sg/#calculator to find out if one has sufficient funds for retirement.
Here Mr Fariz offers tips on how to retire comfortably.
Madam Rohana has learnt that proper financial planning is imperative to secure one's future.
Saving at least half of her salary shows that she has very good self-control. A good habit to cultivate is to save before spending, and to make your savings work smarter to yield returns higher than the inflation rate.
HAVING DIFFERENT PLANS AND POLICIES
It is good that she has various plans which will help her achieve her retirement goals.
A passive stream of income will also come in handy to take care of daily needs when one stops working.
Madam Rohana plans to move to a smaller apartment after her children get married. If the value of her current property appreciates, her property investment would pay off.
She also has CPF Life, which provides a monthly payout to cover her basic needs, and her single-premium investment-linked policy, Manulink Investor, which she can cash out to supplement her retirement funding. With these, she will be on track to getting $4,000 to $5,000 per month during her retirement years.
But with every investment, there comes risk. Hence, one needs to assess his or her risk appetite.
It is important that Madam Rohana also protects her retirement savings from unexpected health issues.
Health-care costs are expected to rise substantially in the future.
Manulife's ManuCompleteCare provides financial support for the treatment of critical illnesses at all stages.
The payout is doubled for selected illnesses, such as Parkinson's disease, which are known to be particularly expensive to treat.
The policy also pays 20 per cent of the basic protection amount for covered Special Benefit conditions, such as diabetic complications.
The coverage allows policyholders to focus on recovering, without having to worry about the additional expenses burdening their loved ones or depleting their retirement nest egg.
For more information on retirement solutions, visit www.manulife.com.sg or call 6833-8188.