Fruits of Your Labour


Retiring from work is a very personal matter. It’s a decision that can have a long and lasting effect on your lifestyle. Therefore it’s important to carefully consider both the advantages and disadvantages of “when is the best time” for you to retire. For example, you could make detailed retirement plans and adhere to them for 20 years, only to have sudden health problems cut our retirement years short or turn your dreams of retiring into a nightmare. On the other hand, if all goes well you could live a very full and rewarding life in retirement. So the question is, when should you retire? Most people usually consider one of these three options: Early Retirement; Retiring “On Time” or Late Retirement. Here are few points to think about with regards to each option.

Early retirement
For many of us, this means leaving the world of work behind between the ages of 50 and 55. The biggest benefit of retiring early is that it provides us with more time to pursue hobbies and to enjoy the “fruits of our labour”. Even at age 55, you may have worked hard for 30 or more years, and you may think that it’s time to relax and enjoy yourself after spending all of those stressful hours in the workplace. However, the downside to retiring early is that you have less time to accumulate retirement benefits. You will need to save more each year to make this a reality and your income will have to last longer if you retire early. The challenge with retiring early is that you’ll need more money in your retirement accounts, and there is a shorter timeframe to accumulate that money.

Retiring “On Time”
The usual retirement age is between age 55 and 60. The biggest benefit of retiring on time is that if all goes well, it will give you adequate time to enjoy a healthy and fulfilling retirement. Other benefits of retiring on time include: having more time to create a substantial retirement fund; and putting money aside for retirement will be less painful as you watch the power of compounding interest grow your funds.

Retiring Later in Life
If you choose to remain in the workplace past the age of 60-65 you will probably be doing so because you either enjoy what you do for a living or you cannot afford to retire. You see maintaining a productive role in your company and having daily interactions with your co-workers as important benefits. The biggest advantage of retiring late in life is that you do not need to incur your living expenses with your retirement fund. The additional years of employment mean not only additional current income, but also the chance to continue contributing to your retirement fund. Working until later in life also reduces the number of years that savings in your fund must last, thus raising the amount of income that can be drawn from the portfolio.

Planning is needed for a successful retirement
It’s worth remembering that good retirement planning is not just about your immediate living expenses, but the potential long-term costs too. We are living longer and healthier lives, so it pays to think about the costs you may experience in later years. In Brunei, the average life expectancy for a 65-year-old man is about 11 more years, and 14 more years for a woman. But these are just averages that do not take account of individual circumstances – you may live for much longer. At AIA their team of professionals will give you the right advice and information required to help you start planning to enjoy and make the most of your retirement years.

AIA aims to help you find an investment approach that fits your financial goal and risk appetite by combining innovative products with expert advice. AIA understands that each of you have unique financial goals, therefore AIA has designed a line of investment linked plans that offer you smart solutions to satisfy your portfolio needs by delivering consistent performance. Investment linked plans offer you the opportunity to participate in investment opportunities while ensuring you have financial protection through life insurance. You can benefit from investment opportunities in developed and emerging markets, and in different ranges of risk/return profiles.

This article was published in the Oct-Dec 2016 issue of Inspire Magazine. Download it here!

This advice on family living is made possible with support from