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Planning For Retirement: Here Is What You Should Be Doing Now

by Chantel DaCosta May 13, 2024

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The fundamentals of planning and saving for retirement may not have changed significantly in the last few decades but our lives are starkly different from our parents and grandparents.

One of the first differences that comes to mind is that the fact that we are living longer. Presently the average life expectancy for human beings is 73 years old, and many of us know people who are alive and active well into their 90s. So, what does this mean for retirement planning?

Yello has a curated a handy retirement planning guide with what you need to know and what you should be doing now to live comfortably when you stop working.

Factors to Consider When Planning for Retirement

Budgeting is essential when you stop receiving a regular monthly or weekly income so you will need to calculate how much money you can live on after retirement. To get an accurate understanding of your living expenses, you must include several factors such as:

  • Housing costs (rent or mortgage).
  • Utilities (water, electricity, internet).
  • Property maintenance.
  • Healthcare.
  • Daily living costs (food, clothing, transportation).
  • Entertainment.
  • Travel and leisure.
  • Life and health insurance.

How Much Do You Need to Save For Retirement

The typical advice for retirement savings is 80% to 90% of your annual pre-retirement income, meanwhile others say to save 12 times your annual pre-retirement salary. You can discuss and get help with your calculations from a financial advisor.

When To Start Saving For Retirement

Most sources agree that you should start saving for retirement in your 20s. But don’t fear if you are already in your 30s or 40s, you can start saving today.

Most companies across the region offer pension plans for their employees that you can contribute to voluntarily and that you will have access to when you retire. Ask your company’s HR team for details on what your company’s pension plan looks like, the benefits, and when you can join if you are a new staff member.

For self-employed people, several banks offer independent pension schemes that can help you save for retirement. Use FindYello.com to search for banking and financial services institutions in your community and book an appointment with a financial adviser to help you start saving immediately.

Yello wants you to have a comfortable, safe, secure, and fun retirement and that means starting to plan for retirement today.

Sources: CNBC, Investopedia, NerdWallet and Macrotrends.