Tuesday 10 April 2007

Planning for my future

Last night, I spent two hours with Aunty Molly discussing about my future. Molly is my mother’s sister, she’s also my insurance agent.

When I was younger, I avoided insurance agents like plague. Now I turn to them for advice. No matter what people say, I find it is our responsibility to plan for our old age. Well, if we receive any additional help from the government, it’s a big plus but we cannot sit around and wait forever. Lamenting about it isn't going to help either. It is our own life after all. What better time to do it than now, when we are still able and employable.

Molly : At what age do you plan to retire?
Me : Around 60.
Molly : Statistics show that an average woman in Singapore can live up to 88 years of age.
Me : Oh wow, how am I going to survive for 28 years after I retire? Hmm, looks like I’ll have to retire at 68.
Molly : Now how much do you think you would need every month after retirement?
Me : Say $2,000.
Molly : Assuming you need $2,000 per month x 20 years. That works out to $480,000.
Me : Gee! Half a million dollars?

We are not even talking about medical expenses and other contingencies. We know about the escalating cost of healthcare and we’ve seen how a major illness can wipe out a family’s life savings overnight.

Coincidentally, this morning the radio DJs were discussing about the plight of many elderly folks here. Apparently, 70% of abused cases are old women who are poor and sick. Most of them depend on their family for care and support. They inadvertently become a burden to their families who are already struggling with their own problems. It’s a sad reality.

Well, it’s never too late or too early to start. Besides, it won’t cost you an arm or a leg. That’s the beauty of insurance. There is a plan for everyone, no matter how rich or poor you are. It’s better to forego that pretty pair of shoes today than to find yourself homeless, sick and helpless after you retire. You decide.

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