There are many macro factors that can affect the quality of life when you retire; with some being beyond your control. In fact, in this day and age we live in, our definition of retirement is changing and the stages of retirement are less clear-cut than they used to be. With longer life expectancy due to medical advancements, one could possibly spend more than 30 years in retirement.
What you can control, is how you save and invest during your accumulation phase, to get prepared for the decumulation phase of your life. For most of us, the accumulation phase essentially begins when a person starts saving and investing their money to grow their nest egg, and ends when they begin to spend the money they have saved (the decumulation phase).
Of course, the earlier the accumulation phase (saving and investing) starts, the more advantages you will have; such as compounding interest and protection from business cycles.
The financial services industry has focused heavily on helping people stay on track with saving for retirement, but personally I have found that very few actually teach how to build a sound retirement system for the decumulation stage.
To cut through the clutter, you just need to internalise this: Decumulation is essentially figuring out strategic ways to use the money you have saved over the years, to ensure that what you have accumulated can cover your cash needs for as long as you live.
A savvy decumulation plan can also include strategic long-term investments that carry on even after you have retired. Speak with us to find out how you can retire the way you want.
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