3 tips to advance your Retirement Mastery
A truly happy and fulfilling retirement depends on one key factor – your mindset. In fact, mindset is the key to most aspects of successful living. For example, people who see their careers as meaningful lifelong pursuits move beyond thinking only of the money. To these individuals, a worry-free mindset is their biggest asset. So how can you attain this kind of mindset and then apply it to mastering your retirement?
Here are three fundamental steps.
Intelligence
To start, you must fully understand your expectations and needs for your retirement life. Talk to your partner or loved ones about their wishes. This will help you formulate appropriate financial plans at different stages of your life. In principle, your assets and income, less any debts and commitments, will be the actual monthly surplus you have to work with. This is basically the fund you can use to plan your finance and the amount you can set aside that is within a manageable range. So consider carefully before you make any decisions when it comes to buying high-risk investment products. Do not over-leverage. Work within your surplus.
Momentum
Another step is to match your financial goals with your life goals. Short-term goals such as vacation plans, getting married, or maybe starting your own business. While long-term goals could be things like purchasing a property, supporting your children’s education, taking care of your parents and, of course, your retirement. Can you reach your goals with your existing funds? Or, at least, close the gap step by step? Essentially, it is all about having the momentum to put your plans into action. You can use different tools, such as the Sun Life Retirement Calculator to help you gauge your expectations as reference and review your progress along the way.
Positive Experiences
Stay positive and learn from your experiences. Try your best to balance your risks and keep your investments in proportion to your income. Remember your age affects your tolerance to risk. Start saving for your retirement as early as possible – even in your 20s and 30s. This can help you benefit hugely from compound interest. You should also set aside a certain amount of money as your ‘rainy day fund’ against accidents or unforeseeable health problems. Considering many people lost their jobs due to the COVID-19 crisis, this was not even remotely their fault and emergency funds will help get you through difficult times. The usual recommendation is to have at least 3 to 6 months of living expenses as your rainy day fund.
Sun Life Hong Kong revealed the inaugural Sun Life Retirement Mastery Index. This came out of a survey which studied the degree to which Hong Kongers have control over their retirement planning by evaluating their real performances in the 3 areas - “Intelligence”, “Momentum”, and “Positive Experiences”.
Taking your first step
There is an old saying that “even a journey of a thousand miles begins with a single step”. A solid financial plan can be your first step towards a worry-free retirement, but don’t wait too long! Seek professional advice on how to achieve your goals.
For those who want to adopt a balanced approach with guaranteed returns, plus value-added opportunities, insurance products can play a role. At Sun Life, we offer savings and life protection plans that can help you build wealth at different stages of your life. And our advisors are always on hand to provide you advices on how to advance your Retirement Mastery.
