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Monday, 14 December 2015

How much do you need to save for a dream retirement?

If you have been saving 10 or 15 percent of your income, every single year and you have paid off your student loans and debts, you may be thinking this is good enough to have a dream retirement.

However, according to some retirement experts 15 percent is may not be enough.

Having said that, it will depend, in part, on the market's performance. 15 percent of savings could be just the beginning. If the markets perform well, then you’ll have enough in retirement, if they don’t, then you won’t.

So how much do we have to save to secure the future? The answer is 25 up to 30 percent to cover your retirement. It might be good to look to asset classes like equities to achieve higher returns as long as you have a backup plan if the market collapses. That might mean reducing your living expenses, bunking in with your kids, even moving abroad if necessary.

Despite the frightening numbers of 25 and 30 percent, many people manage to save up that much. Even millennials starting their careers are doing very well. 7 percent saving 20 percent or more, and 19 percent saving at least 15 percent.

There are number of ways to save up that much as 30 percent, most of them require discipline as it is well-known that the natural human tendency is to spend any funds we get our hands on. It could be very useful to put away a large percentage of cash that comes in unexpectedly. That might include gifts, tax refunds, last-minute assignments, or any other bonus that is not part of your normal monthly budgeting.

Here at Just Service we provide the best service possible to make sure your existing savings/investment/pensions plans work for you.


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Just Service Hong Kong is a member of the Hong Kong Confederation of Insurance Brokers in Hong Kong, transacting Long Term (including linked long term) Insurance business. Nothing in the comments above should be taken as offering investment advice or making an offer of any kind with regard to financial products or services of any kind. It is therefore important to reinforce that all comments above are designed to be general in nature and should not be relied upon for considering investment decisions without talking to licensed advisers.


1 comment:

  1. What you said is so true, there is more things to explore about dreams but I'm not sure what are dreams that comes in the minds of people while living in this world.

    ReplyDelete