Develop a positive attitude to planning your retirement, and remember that it is never too early to start. Follow a positive plan and work out your investments accordingly.

Planning for retirement in your 30’s is not as ridiculous as it sounds. Think ahead, and you will have more chance of a rosy future.

Are you afraid of the “R” word?  When “Retirement” is mentioned, many people start to tremble. They look at their bank balance and then think of the terrible news stories about hungry and homeless old people left destitute after outliving their finances. But that does not have to be you - with the right kind of financial planning your retirement can be comfortable.

 Though we can never know for certain what life has in store for us, careful calculations can safeguard against future blips and make the future less threatening.

Work out your future monetary needs

How much money do you need for your daily expenses?  Your current pre-retirement budget can provide a good estimate of your post-retirement needs.  Though traditionally analysts estimated retirement expenses to be approximately 75% of one’s pre-retirement budget, newer trends take into account younger retirees, goals of travel and “living it up,” and the increased costs of health care and a longer life, and revise estimates of post-retirement living expenses to be approximate 85% of one’s pre-retirement budget.  Depending on your personal retirement goals, this figure can even be higher. 

 Where will this money come from?

After you retire, your monthly paycheck ends, so you’ll need an alternative source of income.  More often than not, your government and job pensions won’t cover the entire amount that you require, so you’ll need to supplement from savings.  Contact your human resource representative or insurance agent to find out what your anticipated work pension will be. And if you are an immigrant, check out any government or work pensions you may have from your old country.

Teach your children about the financial planning process in ways they can relate toCredit: Image: Salvatore Vuono /

 Investment income

Planning can help ensure your investments will cover the shortfall between your needs and pension income.  The earlier you begin planning, the better.  But even so, adjustments can be made to your portfolio later in life.   All retirees must balance the potential risks of investments, the safety of bank deposits, the erosive power of inflation, and their own desires for a comfortable retirement.  Careful asset allocation and vigilance, both on your portfolio and spending habits, can help you maintain a sufficient income stream throughout your retirement.

Read my article on avoiding pitfalls in your retirement planning process to work out a concrete strategy.


Disclaimer: This article is for educational purposes and is not a substitute for investment advice that takes into account each individual’s special position and needs. Past performance is no guarantee of future returns.