I’LL LIVE A SIMPLE LIFE!

Are you sure? That’s my usual reply when people tell me that they don’t need a lot of money during their golden years as they intend to live a simple life.

Many people erroneously assume that they can practically curtail their current executive lifestyle & activities, and that the major costs during retirement are monies required for food and basic necessities. It is therefore not surprising that many people run out of savings within 3 – 10 years after retirement.

Underestimating one’s financial needs is not uncommon especially if no effort has been spend into defining what is a “simple life”; and identifying and computing the requirements spanning over 20 or more years. When they do, many people were literally dumbfounded actually when their financial consultant present the figures.

So, how much does one need for retirement? That will vary from individual to individual. However, the earlier one seized one’s funding requirements, the more time is available to plan and stock-up the nestegg.