New Approach To Secure a fulfilling Retirement You Deserve [Chills 169 Sponsored by OCBC]

The Big Questions on Retirement: How Much is Enough?

What does retirement really mean in today’s world? Is it just about having enough money socked away, or is there more to it than that? A recent panel discussion titled “How Much Money is Enough for Retirement?” hosted by Reggie and featuring Lisa, Kenneth, and Chiu Weng from OCBC explored these big questions in-depth.

Exploring the Meaning of Retirement: A Candid Conversation with Financial Experts

The Panelists

Lisa, a personal finance blogger behind the YouTube channel “Lisa’s Adulting in Singapore,” sees retirement as having “the choice to stop working and having…the ability to support my lifestyle without having to depend on employment.” While initially viewing retirement as fixed at 65, she now sees it as something that can be influenced and evolving over one’s lifetime.

Kenneth, co-founder & CEO of Mito Health, and ex co-founder of investment startup Seedly, defines retirement as “doing what you love.” Contrary to traditional thinking, he “doesn’t plan to retire…I will keep starting companies and investing because that’s what’s exciting.” However, he acknowledges that “startup life is very bad for health,” emphasizing the importance of preventative healthcare.

Chiu Weng from OCBC Bank says retirement is “more than just money – it’s about achieving overall wellness and finding fulfillment.” Historically, retirement is a relatively new concept enabled by modern longevity. To him, it means “how do we find that fulfillment beyond just the monetary sense?”

The discussion

The group discusses different mindsets around retirement. Lisa acknowledges the appeal of Bill Perkins’ book “Die With Zero,” which advocates maximizing life experiences and risk-taking earlier, but notes it’s best for those already financially stable versus those just starting out or struggling.

Redefining Retirement

The traditional concept of retirement as completely stopping work at 65 is evolving. As Lisa reflects, “Retirement to me is just having the choice to stop working and being able to support my lifestyle without having to depend on employment.”

Lisa acknowledges the changing retirement age and how she gradually grasped the broader concept of retirement beyond the traditional fixed age. She emphasizes that retirement is a continuous learning process, allowing individuals to define and influence their financial independence.

Kenneth takes an even more contrarian view. Expressing his passion for starting companies and investing in startups. He believes retirement should not limit one’s engagement in exciting ventures. While acknowledging the potential health challenges of a startup lifestyle, he encourages individuals to embrace contrarian thinking in the ever-evolving world. “I actually don’t plan to retire in the traditional sense…I actually love starting companies and will keep starting and investing in startups.”

For Chiu Weng, retirement goes beyond just money. Chiu Weng contributes a holistic perspective on retirement, drawing attention to the government’s emphasis on retirement as a financial concept. He advocates for a more comprehensive definition, encompassing overall wellness and fulfillment. “Retirement to me is about achieving overall wellness and finding fulfillment in what you do.” He points out retirement is a modern concept that emerged as life expectancies increased beyond 60 years old.

The Retirement Mindset: Die With Zero?

The panel discussed the provocative ideas in the book “Die With Zero” by Bill Perkins, which advocates:

– Maximising positive life experiences
– Aiming to die with no remaining wealth
– Giving inheritance money to children earlier when it’s more impactful
– Taking big risks earlier in life

While Lisa found it a “useful perspective” for those established in their careers, she says for herself still starting out, the focus is more on “delaying gratification to build up” assets first.

Exploring Fulfillment in Retirement:

Chiu Weng further elaborates on the transition from pre-retirement to semi-retirement and full retirement. He emphasizes the need to fill the void left by reduced work commitments with meaningful activities. This can involve reconnecting with friends, pursuing long-delayed hobbies, or embarking on travel adventures to exotic destinations. Retirement, according to Chiu Weng, offers an opportunity to explore new avenues and discover a sense of fulfillment beyond professional obligations.

Chiu Weng advocates balancing delayed gratification with prioritising “memory dividends” through experiences along the way for motivation. Kenneth also advises allotting a “fun budget” using “fun coupons” to spend on leisure versus thinking of dollars saved for investing.

Health is the True Wealth

A key point raised was that retirement isn’t just about money, but being physically able to do activities you enjoy. As Kenneth emphasised:

“The next pandemic is not a financial literacy pandemic, it’s a health pandemic…if you have wealth without health, that’s the only thing you want.”

He advocates buying good insurance, getting regular health screenings, and being proactive about preventative care from a young age. Many clients at his clinic spend heavily on healthcare trying to “buy back life and time.”

Planning for the “Retirement” You Want

They acknowledge retirement plans require flexibility. As Lisa says, “as your priorities change with life phases like marriage and children, changes need to be made.” So how can you plan for the retirement lifestyle you desire? Chiu Weng stresses knowing your “end goal” through envisioning what you want:

“If you don’t know where you want to go, you’re just winging it. Things happen along the way, but you end up somewhere and don’t know how to get out.”

He cites positive examples of retirees joining walking groups, pursuing hobbies like line dancing or collecting stamps – activities that create “a spark in their life.”

The panelists agree that a fulfilling retirement requires more than just money. As Lisa summarises:

“Retirement, yes it’s about the resources to support your life without working income. But the non-material aspects like relationships, friendships, hobbies – those are what I’m starting to appreciate more.”

With diverse perspectives from personal finance experts across different life stages, this panel made it clear – the road to a truly prosperous retirement is about much more than just hitting a savings number. Careful planning for purpose, health, and life beyond work is key.

Five Essential Factors to Consider for Retirement Planning:

– Financial security: Assessing savings, investments, and potential income sources.
– Lifestyle aspirations: Defining the desired quality of life and associated expenses.
– Health and well-being: Considering healthcare and insurance needs.
– Social connections: Nurturing relationships and maintaining a strong support network.
– Personal fulfillment: Identifying hobbies, interests, and goals for post-retirement engagement.

You can check their full interview on Chills with TFC, Episode 169 on Spotify, YouTube, Apple podcast for valuable insights into the multifaceted concept of retirement. Through their diverse perspectives and experiences, they shed light on retirement as a journey of self-discovery, financial planning, and personal growth. As individuals contemplate their own retirement goals, it is crucial to consider both financial security and the pursuit of fulfillment in order to make informed decisions and embark on a well-prepared retirement journey.

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