You Might Ruin Your Retirement Plans if You Don’t Start Doing These


Have you already started thinking about what you’re going to do when you retire? Whether you plan to travel the world or just stay at home and spend time with your loved ones, you will still require finances to sustain your post-retirement life. Which is why retirement planning is one of the most essential financial exercises that one should address as early as possible, especially as living costs are expected to rise continuously.

One of the best ways to ensure that you can enjoy your golden years comfortably is to stop following bad financial habits as soon as possible. Hence, here are some habits that we should foster to avoid living through our post-retirement years in poverty.

Start Spending Less

Do you have a penchant for collecting expensive cars or luxury brands? Do you have the tendency to start splurging the moment you have extra money in your bank account? If the answer is “Yes” to both these questions, then it’s time to start considering at least cutting down on excessive spending.

Occasional splurging is fine but once it becomes a regular phenomenon, then it will not be healthy for your retirement plans. Start setting a limit on how much you should spend monthly and keep track of your expenses to ensure that you adhere to it. By gradually reducing your expenses, you will have more to use in the future.

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The majority of bankruptcies in Malaysia occur due to overspending.

Start Saving

Truth be told, it’s always easier to spend than to save. It is so tempting to spend money on a vacation to Europe, a sports car, or that watch that you’ve been eyeing for months. However, think about it this way: By saving this money now, you can enjoy it in your later years when you might no longer have a stable income to rely on.

To save adequately for your retirement, make an effort to set aside about one-third (33%) of your monthly salary. To prevent yourself from spending the money, you can also consider putting it in a fixed deposit or long-term insurance policy that comes with a savings plan. Not only can this prevent you from spending, it also enables you to leverage on a decent and consistent return.

Start Investing Wisely

The word “investing” can be rather intimidating for many people. They assume that investments are volatile and pose a high risk of losing a large amount of money within a short period of time. However, investing is actually a good way to ensure that you have an extra source of cash income upon retirement.

Depending on your risk tolerance, there are a wide array of investments that you can consider – from real-estate to cryptocurrency. Learn more about investments or consult a professional so that you can make an informed decision before you commit.

Start Settling Your Debts

Our debts are like diseases that doesn’t have immediate symptoms but grow increasingly dangerous as time progresses. Therefore, it is wise to clear off some of the existing debts you have before they accumulate to an overwhelming stage. In fact, there is a likelihood that you might have to keep paying them well into your retirement if you do not start clearing what you can now. Keep an eye on the debts you currently have and work with your financial adviser to identify the best ways to settle the debts within the shortest period possible.

Remember, it’s never too late to start planning for your retirement. Every financial decision you make today can have a profound impact on how you live after calling it a day, so make sure that you start managing your finances wisely today.

This article was written by Lord Tan from, a site dedicated to increasing financial literacy and helping you save time and money by comparing credit cards, personal loans, and broadband plans in Malaysia.


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