After many years of hard work and careful saving, your retirement date may now be just around the corner. Perhaps you’re looking forward to starting some new projects, travelling the world, or spending more quality time with your family.
While these may all be exciting plans, it’s important to ensure your finances are in good shape to allow you to achieve the goals you’ve set yourself when you retire. Read on to discover five financial tasks to add to your to-do list if you plan to retire in the next year.
1. Trace any lost pension pots to add to your retirement savings
If you have multiple pension pots that you’ve saved into during your career, it can be tricky to keep track of each one. If you lose access to one, it could take thousands off your retirement savings, which might otherwise have helped you to achieve more of your long-term goals.
So, make sure you’ve traced any old pension pots so that you have an accurate idea of how much you have available to help you fund your retirement.
2. Find out how much State Pension you may be entitled to in Singapore or your home country
As an expat, you may be entitled to a State Pension from your home country. This could depend on a few factors, including:
- How long you have lived in Singapore
- The State Pension Age in your home country
- Your tax position in Singapore and in your home country.
If you are a permanent resident here in Singapore, you may also be entitled to payouts if you have contributed to the Central Provident Fund (CPF). This will depend on your circumstances though, so it’s important to check this before you retire to ensure you know exactly what you may receive from the scheme.
It may help to consult a specialist financial planner who can advise you on the tax implications of any State Pension you may be entitled to from your home country and how you can claim your pension payouts.
3. Review your estate plan
Being an expat can add a layer of complexity to your estate plan, particularly if you hold assets in different jurisdictions and if your loved ones live in other countries. Your approaching retirement is a good opportunity to review your plan and ensure everything is up to date and recorded as you’d like it to be.
As part of this, you may wish to review your:
- Will
- Lasting Power of Attorney
- Expression of wish on your pensions.
If your circumstances have changed since you last reviewed your plan, such as if you’ve had a new child or grandchild, married or remarried, or bought or sold property, you may need to update these documents. Regular reviews can provide helpful peace of mind that everything is in place should anything happen to you.
4. Create a plan for taking an income from your retirement savings
Over the course of your career, you’ve likely been diligently saving towards your retirement, contributing to pensions, investments, and other assets to ensure you have a nest egg to draw from when the time comes.
But the next step is to decide how these savings and investments could provide your income in the next chapter of your life.
The most suitable method of taking income from your assets will depend on a few factors:
- Tax implications
- Your personal circumstances and goals
- Where you plan to retire – in Singapore, your home country, or somewhere new.
Your planner can help you to identify what might work best for you based on these factors.
5. Book a regular meeting with your planner
Your financial planner may have been a trusted ally as you worked towards your retirement date, and that needn’t change when you finish working. In fact, it’s sensible to continue meeting with your planner throughout your retirement to ensure that your finances remain in good shape to support you in achieving your goals.
This is particularly important if your circumstances change, such as if you inherit some money or lose a loved one. Your planner can help you to identify the most suitable next steps to help you maintain your preferred lifestyle in retirement and to protect your wealth, especially at a time when managing your money may feel overwhelming.
It all starts by booking a meeting to put a robust plan in place for your retirement, so please get in touch if you’d like to speak to us about this today.
