How To Achieve Your Dream Retirement In Your 30s, 40s & 50s

Written by Rebecca Shamasundari

Illustration by Michelle Leong

A secure and comfortable retirement is everyone’s dream. However, it doesn’t just happen overnight. To live well in retirement, you can no longer rely only on your pension or EPFFUNDS. Instead, you will have to depend on proper retirement planning, timelyINVESTMENTS, and making good use of your other retirement savings plans.

In your 30s, you might be financially preoccupied while establishing a home and family. You could take it for granted that you have many years ahead and can always plan for retirement later but your 30s is actually the best time toSTART because time is your biggest advantage. With a longerINVESTMENT horizon, you can scout for more options and adopt an aggressive approach for your retirement plan.

Once you get to your 40s, you need to work towards wealth accumulation as it is typically the peak of your earning power. This is when it is important for you to maintain a broadVIEW of all of your holdings as you reallocate assets and redirect future investments.

The last leg of your retirement planning would be in your 50s. This is where you will likely have to take less risk and skew your investments towards conservative holdings like fixedINCOME instruments. You will now need to consider wealth protection as there is minimal time to reverse any major investment losses incurred along the way. 

Keep in mind that while planning for your retirement is a long-term commitment, and plans can change along the way. You may wish to retire earlier, or you might have changed jobs and now earn a different income. Review your retirement plan after every significant event, and consider whether you need to make any changes. The earlier you start planning, the more time and options you will have. With the right strategy, you can save enough for the lifestyle you want in retirement.

Source :  www.imoney.my