Now take a few minutes to calculate your ideal retirement savings. Having an idea of your financial landscape will help you determine the right investment plan. Don’t forget, planning a retirement at 40 means you have 25 years less to save compared to retiring at 65.
Once you’ve done the math, you may realise relying on your EPF alone won’t be enough to ensure financial independence after retirement. Especially with the ever-increasing cost of living, economic inflation and the occasional unexpected expenses, there will be very little left to fully enjoy retirement.
What you need is an immediate savings goal – the earlier you start, the more you’ll have by the time you’re ready to retire. Although you may have a well-calculated plan in mind, it’s always best to aim higher. After all, retiring at 40 means you’re still able and fit to embark on bigger and more exciting adventures.