Most of us would want to live out our retirement years effortlessly, with financial independence to enjoy quality living. Therefore, practicing Financial Wellness should be done regardless of age and time to ensure that we have a comfortable retirement nest egg.
So what is financial wellness? Simply, it is about having an understanding of your financial situation and taking care of it in preparation and anticipation of any financial changes. It is about having a healthy state of well-being today while preparing financially for tomorrow. The emphasis is not on being wealthy but on planning and control of your finances.
Sources of Income
Today’s seniors are better educated and more investment- savvy. Some could have built up a good source of income, both active and passive. Here are some other monetary options that you can explore:
- CPF Life or CPF Retirement scheme
This scheme provides Singapore Citizens and Permanent Residents above the ages of 65 with a monthly payout.
This provides a cash bonus to household that right-size to smaller units.
You may consider subletting a room after your children have moved out if your current homestead is of strong sentimental values.
Payout from endowment policies or retirement policies upon maturity is an added bonus.
This is an additional monetization option to help elderly households in smaller flats unlock the value of their homes while still continuing to live in it, and receiving an income stream to supplement their retirement income.
Stretching Every Dollar
It is important to manage your funds prudently. To enjoy a reasonably comfortable retirement, use a budget to keep track of your finances. Here are some cost-cutting tips to aid you in reducing expenses:
- Make full use of concessions for seniors, where possible. Use public transport like buses or trains.
- Instead of frequenting high teas at restaurants, invite your peers over for pot-luck.
- Explore the various options available for social activities and courses at the neighbourhood Community Centres (CCs) or Voluntary Welfare Organisations (VWOs).
- Make or bake gifts for your friends and family instead of buying.
- Visit the various free heritage attractions like museums or the beautiful parks islandwide.
You can make comfortable retirement a reality with prudent budgeting and sound financial planning. At the same time, do not forget to continue maintaining a healthy and active lifestyle, and striking a balance between social activities that keep you occupied and spend time meaningfully.