Start early so your nest egg can grow

Start early so your nest egg can grow

SINGAPORE - Whether it's a morbid fear of death or just the unpleasant acknowledgement that we are all getting old, many of us just do not want to think about retirement, much less plan for it.

Survey after survey points to the fact that many Singaporeans are inadequately prepared for their silver years.

The same surveys often show that we actually know full well how important it is to build up a retirement nest egg, yet many people have yet to start doing so. About 40 per cent of Singaporeans to be exact, according to an HSBC Insurance study.

Experts have long extolled the merits of starting your saving early.

Mr Christopher Tan, chief executive of financial advisory firm Providend, tells The Sunday Times: "If one is accumulating towards retirement, you should give yourself at least 10 years to accumulate.

"Anything less, I would say it is very difficult. In fact, 10 years is already very tough. The more time you have, the less pressure on getting returns and the lower risks you need to take."

Fortunately, it is never too late to start, although those who are very near retirement age will likely have to set aside a larger sum each month and stick to relatively conservative investment tools.

Mr Daniel Lum, director of product and marketing at Aviva Singapore, notes: "With a short time horizon, you should focus on capital preservation as there is less time to rebound from large losses.

"While there isn't one magic formula that would be suitable for everybody, there is a wide range of investment, savings and insurance options available in Singapore to cater to different needs."

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