Retirement planning can be a daunting task, especially in a fast-paced city like Singapore where the cost of living is high and the retirement age keeps increasing. However, making mistakes during the planning process can cost you dearly in your golden years. Here are 4 common mistakes to avoid when planning for retirement in Singapore and how to overcome them.
1. Underestimating your retirement expensesOne of the biggest mistakes people make when planning for retirement is underestimating their future expenses. This could be due to not taking into account inflation, healthcare costs, or unexpected expenses, which can quickly deplete your retirement savings. To avoid this, make sure to factor in all possible expenses and give yourself a cushion for unforeseen circumstances.
2. Starting too lateAnother common mistake is starting to plan for retirement too late. Many people underestimate the power of compound interest and the importance of starting to save early. The longer you wait, the harder it will be to catch up and save enough for a comfortable retirement. To overcome this, start planning and saving as early as possible, even if it’s just small amounts at first.
3. Not diversifying your investmentsRetirement planning also involves investing your savings to generate enough income for your retirement years. However, a common mistake is not diversifying your investments, which can leave you vulnerable to