Planning for retirement

What are your retirement goals? The concept of retirement means different things to different people. Whether it is the opportunity to travel, spend time with family, start a new project, or dabble in a mixture of all of the above, retirement is a time to enjoy and be free of financial stress. It can be a major life transition and we need to be honest about what our goals are and what trade-offs we are willing to live with. Even if retirement seems a while away, it is good to have a plan. Here are some tips to help you plan for retirement:

1. Start saving early and consistently as every little bit helps. Compound interest adds up over time so the sooner you start the better.
2. Calculate your retirement expenses to estimate your future needs: use some of the tools mentioned on our website to calculate how much you might need in your budget and what your retirement income could look like.
3. Diversification of the investments in each of the Fund’s investment options means your investments are not stored in one ‘basket’ and are not impacted by the performance of any one company or industry.
4. You can make additional contributions to the Fund, though they cannot exceed 20% of your base salary and can only be deducted from your after-tax pay. Note that one-off additional lump sum contributions are not possible. To change your contribution rate, you need to fill this form.
5. The cost of living is a big topic currently so factor in inflation and how this might affect your long-term retirement income. Some members choose to keep their savings in the Fund even after leaving employment.
6. Consider possible large expenses and health care treatments you may need after retiring.
7. Regularly review and adjust your retirement plan as needed. The most common preference is to think about finances and insurance annually. Key calendar dates are a good reminder, such as the change of year.

Linked below are some factsheets, which might be relevant to members who are heading into retirement.

• Factsheet regarding options for members aged 65+
• Factsheet regarding retirement account membership