How Many Pay Cheques Do You Have Left Before You Retire?

26 June 2024

How many pay cheques do you have left before you retire? To find out, multiply your number of working years left before you retire, by how often you receive your pay cheque; for example 27 years x 12 months = 324 pay cheques.

How many “pay cheques”/retirement cheques will you need in retirement?

Here is a guide: (The age your oldest relative died – your age of retirement x 12 months). For example: 90 years old – 65 years old x 12 months = 300 retirement cheques. In this example, the person has to maximize the 324 pay cheques left in order to ensure that they will have enough money to meet all their needs during retirement. What are your figures saying? My numbers were my wake-up call many years ago; so if your figures make you feels a bit unnerved, like me let this motivate you to jump into action.

Increase Your Number of Pay Cheques
In determining how many pay cheques you will need during retirement, it’s important to consider several factors, such as: future medical expenses; preferred retirement lifestyle; and life expectancy. Therefore, if you recognize that you will need additional income, please challenge yourself to increase the number of pay cheques you have left, by:
1. Extending your retirement age: perhaps by an additional 5 years = 60 pay cheques (12 months x 5 years).
2. Earning more: You may not be able to immediately double the number of pay cheques for the year. However, if your start earning additional income from multiple sources then this will increase your number of pay cheques. Start with one additional pay cheque then build continually. Here are a few ways to do that:
• earn from your talents and expertise
• get a second job or seek a higher paying job
• invest in rental property so that you can benefit from passive income in retirement

Three (3) Ways JMMB Can Help You?
• Visit, JMMB’s retirement hub at https://hellofuture.jmmb.com/ to calculate how much money you will need for retirement.
• Invest the maximum in the JMMB Retirement Solution, which is up to 20% of your gross salary. This is ideal for self-employed persons or persons whose employers do not have a pension plan.
• Invest in financial options that beat inflation, such as JMMB’s Optimum Capital and Income and Growth (unit trust) Funds. These unit trusts offer you diversification and are managed by professionals on your behalf. Based on expected growth in the real estate and equities markets, the value of these unit trust are likely to increase over time; therefore, if you want to reap happy returns in the medium to long-term, now is great time to buy.

Are you ready for your retirement? We are ready to help you, visit https://hellofuture.jmmb.com/ and get started.

Written by: Michelle Sinclair-Doyley, Corporate Manager, Group Financial Partnership Support & Financial Education