Hey ,

Zest here!

September is near, and we down to the last quarter of 2024!

For the past 8 months, have there been any concerns on your mind, whether about your career, family, or even your retirement plans?

"The more we ponder, the more we realize how little we truly know." ~ Socrates

Let me share with you a story!

I have a client who is single, let's call him Johnny!

Johnny, who's 49, is planning for retirement at 60.

He meticulously calculated his future expenses, covering everything from food and transport to hobbies like his passion for nature photography. But there was one crucial expense he overlooked: medical-related costs, particularly hospital insurance.

Know your costs to enjoy your retirement

Many people don’t factor in the rising cost of healthcare, especially as we age. I’ve seen this firsthand when my mom had a minor stroke in 2022. The ongoing costs to manage her condition, along with her hospital insurance premiums, have been significant.

Johnny, too, is on a premium hospital insurance plan that covers private hospital wards. With the upcoming premium revision in September, he wanted to know how much he would need to set aside to maintain his coverage during retirement.

Using GoalsMapper, a financial planning tool I subscribed to, I calculated that Sam would need to prepare $390,000 for his premiums from age 60 to 87, of which only $60,000 would be covered by CPF.

That leaves him needing $330,000 in retirement funds just for his hospital insurance. And this doesn’t account for inflation.

With a modest 2% inflation rate, the amount could inflate to $648,000. Johnny was shocked by how much he had underestimated his retirement needs.

Though he could downgrade to a lower-class ward coverage plan, his past experience with long wait times at public hospitals made him determined to keep his private coverage.

Thanks to this process, Sam now has a clearer picture of his retirement needs and what needs to be done to cover the gaps.

If you are interested, I can offer a free review to help you ensure all parts of your financial plan are in place.

It’s a great way to get a comprehensive look at how prepared you are for unexpected costs.

If this sounds useful, just reply to this email.

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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