Retirement planning is a crucial process for retirees to ensure financial stability in their golden years. While saving enough money to maintain a standard of living is essential, there are other financial needs that individuals need to address after leaving the workforce. As National Director of HSBC Vietnam’s Personal Finance and Wealth Management Services Division, Mr. Pramoth Rajendran emphasizes the importance of anticipating health, inflation, and investment risks in retirement planning.
While everyone’s life expectancy, standard of living expectations, and financial situation are different, all retirees face common challenges such as ensuring steady cash flow, living a long life, managing inflation, investments, and covering medical costs. Therefore, it is vital for workers to plan not only for regular cash flow but also for potential financial risks that may arise in retirement.
One significant risk that retirees need to consider is longevity. With people living longer lives, individuals may face financial challenges if their savings and retirement resources are not sufficient to cover expenses. Additionally, unexpected medical costs may arise as individuals age, posing a risk to financial stability. Inflation risk is another factor to consider as rising living costs can erode savings if investment returns do not keep pace with or exceed inflation.
Investment risks are also important to address in retirement planning. While investing can help achieve capital appreciation
