Are you ready for retirement?

ARE YOU READY FOR RETIREMENT ! With most future generations expecting to be worse-off in retirement we explore some interesting facts about retirement and outline just how you can ensure that you're ready to retire. RETIREMENT AGE FOR MEN 57 AND LESS 58 - 60 61 - 63 64 - 65 66 AND MORE NO DATA ARE YOU READY FOR RETIREMENT? FINANCIAL RETIREMENT RELATED RISKS FACED BY EMPLOYEES ARE INCREASED BY WIDESPREAD FINANCIAL ILLITERACY ILLITERACY 20% 39% 9% ONLY 20% OF WORKERS SAY THEY ARE 'VERY ABLE' TO ONLY 9% OF WORKERS TODAY LESS THAN TWO FIFTHS (39%) OF TODAY'S EMPLOYEES ARE UNSURE IF THEY ARE ON COURSE TO ACHIEVE ONLY 9% OF PEOPLE SAY THEIR HAVE A WRITTEN PLAN FOR PERSONAL RETIREMENT PLANNING UNDERSTAND FINANCIAL RETIREMENT PROCESS IS 'VERY WELL DEVELOPED' MATTERS RELATED TO THEIR RETIREMENT INCOME NEEDS RETIREMENT PLANNING. News RETIREMENT AROUND THE WORLD UK In 2011, the U.K. government ended fixed retirement in the country, which means that employers can no longer force staff to quit simply because they are 65 or older. The average retirement savings amount in the U.K. is £73,000 for men and £53,000 for women. 80% of all retirement income is from a combination of government and corporate pensions USA The age at which U.S. citizens are eligible for full retirement benefits ranges from 65 to 67, depending on their year of birth Only 55% of Americans are financially prepared for retirement In the US, 40% of all retirement income comes from Social Security and corporate pensions. SINGAPORE Singapore is one of the best prepared nations on earth for retirement 88% say that they were able to save enough during their working years to retire comfortably The minimum age of retirement in Singapore is 62 Malaysia Malaysia enforces a compulsory retirement age of 60 for public sector employees Just over three-quarters of Malaysians felt they had saved enough for retirement The percentage of retirement income that comes from pensions is low, public and private pensions make up only 30% of all retirement income. AUSTRALIA To receive the Australian government retirement income, known as 'Age Pension', you must be at least 65 and meet the 10-year qualifying Australian residence requirements. Only 60% of Australians say that they have adequate retirement savings In Australia 43% of pension income comes from the state, with another 25% from personal pensions. CANADA Canada will gradually raise the retirement age from 65 years of age to 67 by 2029. On average, Canada's seniors get $492.26 a month from the state pension Canada is one of the least prepared nations in terms of retirement savings; fewer than 55% of Canadians say they were financially prepared for retirement. PRACTICAL AND OVERLOOKED STEPS FOR PLANNING YOUR RETIREMENT DEFINE YOUR RETIREMENT GOALS O You probably have some idea of how you'd like to spend retirement, LIST YOUR 'ASSETS' it's time to write them down. Account for your monthly income, your savings and O Don't focus on budget. Focus on ideas. O Be Specific e.g. rather than listing travel' write 'hiking trip in Asia' O Keep a scrapbook or journal depicting how you envision your retirement, the more descriptive the more tangible your retirement pension first, but then consider your non-traditional 'assets'. Take the time to list all of your hobbies and skills, your will be, passions are assets. -o Consider if you can morph those skills and hobbies into money-making endeavours. EVALUATE YOUR HEALTH + To get the most out of your retirement – and life in general – you want to be as healthy as possible. + Schedule your check-ups and preventive exams now, from an annual physical to teeth cleaning. O Commit to eating healthy, exercising and getting enough sleep. Healthy living doesn't have to be a chore. O Ensure you are staying mentally sharp with brain games, puzzles and books. O Consider your mental health – stay in close contact with family and friends. It may help you to avoid any blues that may arise once you are retired, CREATE A RETIREMENT BUDGET FIND WAYS TO CUT SPENDING How much money is coming in? How much it will cost to reach the goals you identified? How much debt you have? O Your retirement may be right around the corner or years away and saving more now will always make you better prepared O List your bills and then figure out ways to trim them O Pay off your smallest debts first, regardless of interest Track your income and expenses for a couple of months. Figure out how much money you'll need in retirement to support your chosen lifestyle. Make sure you are diversifying your money into multiple rate. This gives you a sense of accomplishment and empowers you to go after the bigger debts! investments O If you are carrying debt, make sure your budget includes monthly payments to reduce it. O Once you have a budget you know you can stick to, start putting it into action! WHAT DO YOU BELIEVE YOUR RETIREMENT WILL BE LIKE? 64% Two-thirds (64%) of workers believe that future generations will be worse off in retirement than current retirees. Three in ten employees between the ages of 18 and 24 expect that they will have to provide financial support to their aging parents compared to 16% of employees between 35 and 44 and only 8% between 55 and 64 44% 44% of employees expect their employer or pension fund will reduce workplace pension benefits. Two out of three employees expect that their government retirement benefits will be less valuable due to government cutbacks. ALL FINANCE TAX www.allfinancetax.com REFERENCES www.aegon.com/Documents/aegon-com/Insight/Retirement-readiness/Aegon-Retirement-Readiness-Survey-2013.pdf www.oecd.org/finance/private-pensions/globalpensionstatistics.htm www.webmd.com/healthy-aging/features/are-you-ready-to-retire www.forbes.com/sites/financialfinesse/2011/08/10/are-you-ready-to-retire/ money.howstuffworks.com/personal-finance/retirement-planning/10-tips-for-retirement-savings.htm www.principal.com/planningcenter/retirementplanning/retirementincome/retirementnews/sixstepsretirementplan.htm chartsbin.com/view/2461 www.aarp.org/work/social-security/info-05-2011/10-steps-to-retire-every-day.html www.investopedia.com/financial-edge/0412/retirement-plans-from-around-the-world.aspx