"Are you confident that after retirement you will have enough money to spend?" If you answered that you are confident Show that you may have a step-by-step retirement plan. But if you answer that there is no confidence It is possible that you have not planned your savings yet. Or may not be unaware that they must start saving money

However, even if you plan to save money for retirement on a regular basis. But failed. For example, investments do not grow or grow slowly. At any time when the expenses are high, it is decided to withdraw the investment funds to prepare for use after retirement. Or become discouraged, then give up midway Let's look at the main reasons What makes the retirement savings plan fail?

1.Leave work too quickly

Nobody doesn't want to retire early. Because you will be able to live the life that you have dreamed of. But the idea of ​​retiring too early may not be suitable for those who do not have a financial plan for retirement. For example, decide to retire at 45 years while earning 50,000 baht per month (after taxes, deducting necessary expenses) means that the money will disappear 600,000 baht per year or 9,000,000 baht over a period of 15 years.

In addition, early retirement will result in the loss of benefits received from working companies such as provident funds. Right of medical treatment. Therefore, if you intend to retire early, you must plan your finances, life insurance, health insurance early.

2.Not planning after retirement
 

There are many people who design their own lives after retirement. But forgot to plan to retire at what age. More importantly, how much money must be prepared to spend. Therefore, before retirement, you must answer the question of how much money you should have to spend comfortably for the rest of your life. This depends on several factors, which vary from person to person. Information from the Bank of Thailand Estimated that the monthly expenses after retirement are approximately 70% of the monthly expenses before retirement, for example, before retirement, there are 30,000 baht per month, the post-retirement expenses are approximately 21,000 baht per month (252,000 baht per year)

Then, the expenses after retirement (about 21,000 baht per month) are multiplied by the number of years expected to live after retirement. For example, expecting to retire at age 60 and expect to live after 25 years of retirement (death at 85) means that the savings should be approximately 6,300,000 baht (252,000 times 25) before retirement.

3.Wrongly organized investment portfolios

There are many people who every month invest their money into retirement investment plans. But it is not successful, the main reason is not planning the investment. Especially not investing in accordance with the acceptable risk level. And invest in things that they don't know or understand.

Such as those who accept less risk, but most investments are in high-risk investment assets such as stocks. While those who accept high risk, but most investments are in low-risk investment assets such as bank deposits. Money Market Fund. The same applies to people who do not have time to follow up on investment news, such as those who work regularly. But most investments are in the form of stocks. Which is an investment asset that requires regular monitoring and so on.

4.Change situation but do not adjust investment portfolios

Do not look at the retirement financial planning is complete. Then let everything go with the steps. Will be able to reach financial goals. Because letting the money keep working Without ever reviewing an investment portfolio, it may not be very good money management. Especially during the changing circumstances, such as the COVID-19 crisis that affects income. Return on investment Cost burden or health problems It may cause the investment plan to go wrong and not the way you thought.

Therefore, reviewing retirement plans is therefore important and should be done at least once a year. By assessing your own investment results and the return of the invested assets that it is like. If investing for a while and the return does not meet the target or loss. Should adjust the investment ratio (Portfolio Rebalancing) to be in accordance with the plan.

5.Not planning for debt formation
 

good debt management plan. And although there is a certain amount of savings, when must share it to pay the debt? May cause not enough money to spend after retirement. The debt that is considered an obstacle to retirees are long-term debts over a year of payment, such as house debt, car debt, and informal debt, so such debts should be removed before retirement
 

if the borrower bought a house from the age of 30, it would end the installment before the age of 60, or if during the debt repayment or refinancing. Will be able to pay off the house faster

In the real world, retirement is not easy. But it is not difficult if those who are ready to retire are well prepared. A financial plan, for example, begins with a self-assessment of the retirement age. Upcoming cost Including a disciplined investment plan If you can, it will help it succeed in the end.