Written by Stannah at 05-12-2016
Maltese Have a Positive Attitude to Life
Maltese people, in general, have a positive bias to life. It is expressed on a daily basis when people say “no problems”, “no worries” or “she’ll be right.” We take this attitude into the realm of our finances and this is particularly the case when it comes to our retirement income.
We Believe Our Super Will Give Us the Financial Freedom to Follow our Dreams
We take a set and forget attitude towards our superannuation, expecting it to fund the lifestyle which we became accustomed to during our working life. While we are working we make plans for all of the things we want to do once we retire. Younger savers view these costs as necessary spending while retirees consider them to be expenses.
People Expect to be Self Funded Retirees
This positive attitude by savers in the 20-49 age group causes them to expect to be self-funded retirees. They may be able to partially fund their retirement through a wealth release or reverse mortgage loan but their estimated income from superannuation, sale of property and part time work is greatly exaggerated.
Prepare for the Unexpected
People in the 50s lose a job for a variety of reasons and some have to give up a job due to increasing chronic disease. It is for times like these that investment in a Stannah stairlift is a prudent investment against all that could possibly go wrong in the future.
Part Time Work Opportunity Not as Easy to Come By
Part time work may be an opportunity for some but this opportunity usually is only realised through the decrease in hours with an existing employer instead of the picking up of a totally new job.
Budgeting is the Key to Success
When you fail to plan for the future you actually plan to fail. It is staggering to think that only around 37% have considered how much income they will need in retirement. Also failure to control your money through the use of a budget means that you will end up spending more than you expect. When you are on a fixed income in retirement this can potentially have dire consequences.
Develop an Investment Strategy
As far as investments go leaving your money in the bank will bring you little to no return. It is important to seek out investment advice when setting up your investment portfolio and then it is important to stay on course and not panick when some poor short term results may cause it to decrease in value. Expectation needs to be managed as historical performance cannot be guaranteed and to have the right timing in regards to buying and selling in any market is a gamble. The most prudent investment strategy is to spread your money across a number of different asset classes.
We cannot leave our head in the sand and expect the future to look after itself. Above all it is important to start early when investing for your future retirement and not to be lured by the expected returns of so called “get rich quick schemes.” Slow and steady wins the race and this is certainly the case when it comes to your retirement. Nobody knows what the future holds but if we are adequately prepared we can face it with some certainty.