It’s ideal to start planning for retirement at an early age. You want to keep growing your investment until it’s ripe enough for retirement. The problem is that you don’t have enough savings since you continued living from payday to payday. Even while working abroad, you weren’t responsible enough in handling your finances. The good thing is that even if you started late, you can still grow your retirement funds. These are some tips that might help you.

Max out the possible contributions 

If you started with zero, you have to max out the possible contributions for the next several years until you retire. In doing so, you will still have enough money to support your lifestyle later in life. It might be more financially challenging, but you have no choice. It’s better to do it now than to keep dragging your heels. Besides, you’re still earning well as an ex-pat, so you should make the most of it.

Identify your needs

If you can’t afford the maximum contributions, you can start by identifying how much you need. Some people don’t need a lot for retirement. If you can live with a smaller retirement fund, you decide how much to put into your account. The ideal withdrawal is about 3 to 4% of your retirement portfolio. If you think it’s good enough, it’s your choice. However, if you think that it’s not going to cover your expenses, you have to build your savings account further.

Don’t take too much risk

There are many ways to invest your money even later in life. You can also accept more significant risks in exchange for a higher interest rate. The problem is if it’s too risky. It includes stock funds with high risk levels. You don’t want to face more challenges once you retire. Minimize the risk if possible. Understanding expat tax planning details will also help if you’re working overseas. These taxes are part of the risks to consider.

Buy comprehensive insurance

If you can only afford a minimal amount for your retirement contribution, you can focus your attention on getting comprehensive insurance. Health and calamity insurance are among the most crucial options. When you’re getting older, you will face plenty of health issues. Ensure the validity of your insurance across different countries.

Pay your debts

Even if you didn’t build enough retirement funds, you can avoid tons of financial problems to think about. Therefore, it helps if you consider paying your debts. Start by cutting your expenses and focusing on reducing your loans. You might not live the life you want during retirement, but it’s also not a stressful life. The absence of loans to repay will make it easier to survive.

Prioritize yourself

Apart from retirement, you also think about the future of your family. You want to make them feel loved, especially since you were away for special moments. It’s kind of you to think about them, but it shouldn’t be the priority. Think about you and your spouse first. Besides, your children will be old enough to take care of themselves.

With these tips, even if you start building your retirement funds later in life, it’s not a problem.


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