Single people save money for retirement
Nowadays, Thai people tend not marriage. Some people decide to remain single for the rest of their lives. This makes them believe that when living alone, you don't have to save as much for retirement as you do with married couples or families with children. But in truth, the financial planning for retirement for single is no different from the one who has a family. More than that Single people for the rest of the life must start planning financially tightly. Because don't forget that no one will look after you.
1. Prepare emergency funds
According to the principle of saving money for emergency use, at least 3 months of monthly expenses. For example, if spending 15,000 baht per month, there should be an emergency savings of 45,000 baht. But when living a single life No one will look after or share the expenses, so there should be at least 6 months of emergency, 90,000 baht (15,000 x 6 months).
The way to save money for emergencies is that every month, money is required, such as 10% of salaries, to invest in highly liquid assets such as money market funds. The short-term fixed-income fund, etc.
Financial planning for a single retirement age is no different from those with families. Begin by setting a goal after retirement about how much money you need per month. And assess how many years they will last from retirement until their death. For example, would like to use a salary of 20,000 baht (240,000 baht per year) and expect to die at the age of 85 years, if retirement 60 means that there will be life after 26 years of retirement.
This means that 6,240,000 baht is needed before retirement, and if inflation is calculated each year, then more money must be prepared. Then just divide the money into investments in the channel to achieve the target set.
3. Buy health and serious illness insurance
If illness occurs especially serious diseases such as heart disease and cancer which have high medical expenses. And happens in the period after retirement. The savings may not be enough for medical expenses. Especially single people who do not have grandchildren to look after.
Therefore, should have health insurance and serious illnesses insurance to help alleviate medical expenses which may be made into a contract attached to life insurance. But must also look at the terms of the contract and the end of the main life insurance as well. Because when the main life insurance ends Additional contracts also must automatically end coverage. Therefore, if choosing an attachment form, it should be attached to life insurance that has a long coverage period, such as life insurance for life. For the opportunity to renew health coverage longer, but the disadvantage is that the premiums are quite high
Or can buy health insurance and serious illness insurance separately. The advantage is that the insurance premium is cheaper than having a contract attached to life insurance. But the disadvantage is that it is to pay premiums in order to be covered year by year. But can extend the contract in the following year depending on voluntary.
However, regardless of health insurance and any form of serious illness Should be done at an early age because the insurance premium will be cheaper than doing it at an older age.
4. Prepare money for emergency sick parents.
Although thinking of being single but there are parents who need to take care of, so in addition to planning for your own finances, you must also plan for both. Especially when they are in an emergency, you will be able to pay less with a plan to buy life insurance.
Before deciding to buy life insurance for parents Must see what kind of life insurance is best for both. By considering the risk of injury or death. If both have a chance to encounter a high-risk disease Should buy life insurance for a period. But if they are still healthy should choose life insurance for life. Because if the insured dies, regardless of the time the insurance company will pay benefits equal to the sum insured purchased by the insured to the beneficiary specified in the insurance policy.
5. Housing planning
When thinking of being single for life, there may be some things that can save money after retirement, for example, housing is getting smaller, or a 1-room condominium suitable for living alone. Or some people don't have to buy new housing because living with parents to look after them. And don't need to buy a car because using the public transport system to travel instead. Therefore, it is possible to focus on investing to prepare funds for retirement.
Financial planning for retirees of single people for life is no different from others. That is to have a clear goal. Start investing at an early age, regular investment every month, and discipline. Arrange portfolios to suit your own investment style. Including always understanding assets and risks before investing If possible, will find the words "single, handsome, beautiful and very rich