Start planning your retirement in a simple way for those who are working to succeed. How should you start? The question of retirement for those who have just started working or have not worked for a long time may seem distant.
The result is that most people neglect to plan their finances (read more about Personal financial management, a very important skill that schools don’t teach ). They may think that it will be a long time before they retire, or they hope that there will be a solution to this problem.
This article explains the importance of personal finance management, which will allow us to understand our own financial cycle, know how to estimate ourselves, create good behavior and discipline, see the importance of spending sensibly, and be able to plan our own finances in conjunction with other goals in life.
Simple financial questions that need answers
The question we need to ask ourselves early on to create awareness and serve as a starting point for thinking about financial planning (of which retirement is one of the financial plans) is:
- Do we have any savings now?
- If so, how can we be sure that our savings will be enough to cover our retirement expenses?
- Have we ever thought about how much money we will have when we retire so that we can live until the end of our lives?
- Or even what kind of career can we do and generate income for us after retirement?
These 4 simple questions are a preliminary check to see what kind of personal financial situation we are in. If we cannot answer any of these questions or do not know any of them, it is very dangerous because it means that we are traveling on a very high risk that may put us in a very difficult situation in the later years of our lives.
“Because we are in an era where there is no stability anymore.”
Remember that the job we are doing today may disappear in a few years or may not be able to continue after retirement. If we do not start planning or solving the financial problems we have today, we will certainly not survive in the future.
So now, no one can help us with this except ourselves. We can easily start by understanding our own money habits. Read more at: What does a personal financial statement tell us about our money habits?
In this article, we will help you understand your financial health. Personal financial statements will tell you your financial information, such as assets, liabilities, income, expenses, or items related to money. Personal financial statements are an important tool in financial planning because they help you know your true financial status, and you can assess your current and future financial situation. They also help you make more effective financial decisions.
We are entering an aging society, so it is important to start planning for retirement.
As everyone knows, Thailand is entering an aging society, meaning the proportion of elderly people will increase compared to the working-age population. People will live longer and die less easily. It is estimated that in 2026, Thailand will become a complete aging society, meaning that the population aged 60 years and over will account for more than 20% of the total population.
There are many problems that follow, such as when you get older, you may encounter health problems or be at a higher risk of illness. When you get sick, medical expenses are higher, and we have to pay more with more advanced technology.
And with better medical technology, we can live longer than before. However, having a long life does not mean that everyone will be healthy. The result is that if you live a long life, you must plan for your financial goals as well because you may not have enough money to spend on the rest of your life.
Or if you know that you definitely won’t have enough money to spend after retirement, the issue of what work to do after retirement is another challenging issue. Because what kind of work can we do after retirement? What kind of work will our physical and health conditions allow us to do? What kind of work can we do with the knowledge and skills we have at that time? These things need to be thought about now. Don’t wait until there are only a few years left before retirement to think about it. Because by then, it may be too late.
Start planning your retirement easily today.
In addition, salaried people like us, after working throughout our working lives, after retirement, we want to have a comfortable life and be able to relax as we want, right?
Because no one wants to have a difficult retirement life and be a burden to their children. And this is the reason why we have to turn to focus on financial planning for retirement. We must start planning for retirement today.
So how do we get started?
Let’s first understand why financial planning for retirement is important. That’s enough to start off well. The next step is to travel with a simple way to plan for retirement successfully for working people, as follows:
1. Retirement age: What is the retirement age for the work we do or the line of work we are in? Normally, it is 60 years, but some professions have started to raise the retirement age, such as 65 or 70 years, because retirement age indicates the period of time we can save and invest.
Therefore, if we save and invest from a young age and our career has a longer retirement age, or our knowledge and experience can continue to find work after retirement, the chances of success in retirement plans are also much higher.
2. Estimate the expenses you want to spend after retirement: We must estimate the expenses in retirement from now on, whether it is the cost of living, the cost of medical care, or other expenses. Because the expenses we want in the future after retirement will tell us how much money we need to save now, and with what investment methods and how?
3. Plan savings and investments: When we have a goal of how old we want to retire and how much money we want to spend after retirement, then we can start planning our finances to achieve that goal.
We can easily assess and plan and calculate our retirement savings targets at www.retirement-checkup.com. This program, after we fill in the information, will give us a preliminary conclusion that we will not have enough money or not have enough to use after retirement. And there is also a proposal to adjust the plan to reach the retirement goal for us to consider as another option.
Most working people, after making an assessment, will encounter the problem of “not having enough money to spend after retirement.” Most of the time, this is due to not having savings, not having invested before, or not having saved and invested enough.
If we find that the money we save is still far from the desired goal, we need to quickly plan to save more money or may have to change the way we save money to other channels. We may divide the money to invest in financial products with higher risks to increase returns, such as equity mutual funds or others.
And another point that you don’t want to miss is the provident fund. If the company has this welfare, you have to do it immediately because the provident fund is another great helper that helps make our retirement plan easier to come true. Read more at: Provident fund, an important helper in achieving the goal of having money to use in retirement.
See? Retirement planning is important. It’s not far away and it’s not as difficult as you think. Just start saving and investing according to the plan with discipline and choose to invest money in various types of assets to get a higher average return. We will be able to achieve our goals comfortably.
For other articles on Finance and Investment, please read more at :
Money management for salaried workers: How to manage money to survive?
Create discipline, create savings habits, fight the crisis with 4 easy methods for working people.
