Start your retirement saving today!

I review no less than 50 personal financial plans a year in my work. I notice that many people do not set aside sufficient savings for their retirement. Most of them cite convincing arguments why they can't save. But I can sense this group of people are living in a self-denial state. Let me show you the hard facts about retirement planning.

1. Retirement planning is not about receiving a gold medal from your employer, getting a fat pension, and start travelling round the world with your spouse(or partner).

1.1. Retirement planning is when you transit into certain inevitable age band where your bodily functions begin to slow down, and you have sufficient financial resources to generate income to live.

1.2. Retirement planning is about having bulk of your income coming from passive instead of active income. Passive income source can come from annuity, dividends, rental from property, planned draw down from life insurance cash values or investment etc. Active income comes only you are able to work.

1.3. When you are old, you need income:

a. to eat and clothe yourself;

b. to maintain the place you stay;

c. to keep up inflation of cost of living;

d. to provide for medical treatment (or medical insurance premium);

e. to discharge your responsibility to your parents(who would be much older than you);

f. to attend red or white events from friends or family members;

g. to please(or pacify) your spouse.

Retirement planning is a personal responsibility. If you can't save now, what make you so sure you can save in the future.

A quote from a wise man: "The difference between an elderly gentleman(or lady) and an old man(or woman) is INCOME."

Start(and continue) your retirement saving today!