Nevertheless, here at Sun Life we always look forward to a lifetime partnership in preparing you for a financially secured and independent retirement. Here are five steps you can take to help you prepare in the best possible way:
- Step 1 - Define your magic number
Planning for retirement is about ensuring you have enough funds to cover for your expenses as well as loved ones upon retirement. Start by figuring out how many more years you might work. If you're 25 now and you retire by 65 you have 40 years to save for your funds. Next, consider your life after retirement. You should have at least 20 times your current annual expenditure to maintain your way of life.
- Step 2 - Start saving now
If you are 25 and start saving for your retirement now, you will also be reaping around 40 years-worth of 'compounded interest' on top of the savings itself. The earlier you start saving, the more your money can grow. It makes sense to put as much of your income as you can into a retirement account regularly. It would also help if you use auto-debit facilities that automatically transfer your money to your retirement fund.
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- Step 3 - Revisit your budget
Financially savvy millennials want to pay off debts as quickly as possible because compounded interest works both ways; in favor of young investors but against young borrowers. Sticking to a monthly budget is the most reliable way to save and pay off debt. Don’t spend more than you earn.
- Step 4 - Protect yourself and your loved ones
A life insurance is designed to protect your family and your dependents from financial troubles due to unexpected eventualities. Remember that insurance premiums are generally at their lowest when you are young and healthy. Sun Life offers a wide variety of products that will suit you depending on your circumstances.
From traditional life insurance policies that earn you dividends and endowments or retirement annuity products that provide annuity, to Variable Universal Life (VUL) insurance products that have an investment component included, to health-oriented insurance products that include health-related benefits; there should be one that fits you and your needs.
- Step 5 - Build an investment portfolio
As soon as you have worked out your savings and insurance needs, what you have left can be used to invest to grow your wealth. Remember, small amounts grow over time.
Talk to Sun Life Advisor to find out more about retirement plan solutions
September 23, 2019, Retirement Planning for Millennials [Web page]. Retrieved from Philippines Sun Life Corporate Website read the article.
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