Planning for retirement in the modern world

To prepare for retirement, there’s forced savings in the form of social security, such as superannuation. Other options to arrange for a secure financial future are savings in the bank, investments and insurance.

These days, preparing for retirement has become more challenging because of people’s longer life expectancies and lifestyle choices, including delaying marriage.

Preparing for a longer life

Today, people can expect to live longer because of the many advances in science and technology, especially in the field of medicine. The challenge, however, is to ensure those additional years of life are adequately funded.

Therefore, when saving for retirement, it’s crucial to set a reasonable future monthly budget to maintain your preferred standard of living. You also want to consider inflation if you were to, say, retire in 10, 20 or 30 years’ time.

Would your superannuation and savings afford you the lifestyle you want during retirement? Should you be making investments or increasing your savings now? Would buying life and health insurance help to secure your finances during retirement?

These are crucial questions worth mulling over if you want to ensure you’re adequately provided for when you retire.

Women, in particular, need to find ways to smoothly navigate their future financial path as they outlive men in general.

If you’re married or have a partner, you’ll need to contemplate your and your partner’s future care and health requirements.

Modern family setups

Aside from delaying marriage and having children later in life, some people decide to stay single. Some people, whether they’re married or unmarried, choose to have kids, whilst others opt to remain childless regardless of their marital status. And then there are those who marry, divorce, remarry and form blended families.

Whether you have a simple or complex family structure, it’s worth thinking about estate planning for the preservation of your assets and the protection of your beneficiaries.

To ensure your retirement plans and estate planning work harmoniously, it’s best to get the advice of your financial advisor or a wealth management expert.

You could start looking into trusts, asset titling and other viable estate planning tools to smoothen the wealth transfer process. This is especially crucial if you have a blended family, to prevent conflict over your estate in the event of your passing.

Options for you

The earlier you can plan for retirement, the better.

And it’s a good thing people have several options open to them today.

Instead of relying on the typical nine-to-five office job, you could get a side gig or freelance work. You can even juggle several remote jobs.

Also, some people at or near retirement age take on encore careers or delay retirement by simply doing the things they love and getting paid for it.

Whatever you do, don’t forget to set aside some of your earnings for your future self.

You’ll thank yourself for it someday.

If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.

(Feedsy Exclusive)