Life Stages

The stage you are at in life will determine what your financial priorities are

Financial advice for all stages in life

To help you we have provided this “Life Stages” section, which takes you through the main events in life from birth onwards, and highlighting particular financial matters which you might find useful to consider at each stage of life. If at any time you are still confused, just call us – we’re here to offer independent financial advice to suit your circumstances.

Stage 1 – Protection phase (age 25-35)

This is the stage where you land a job and start developing your spending habits. This is also the stage where lots of people get into financial stress because of debt. Primarily, this is the stage where you should be writing your financial plan. Start building that emergency fund which will help you during any unexpected happening like a job loss. Understand and allocate your savings for long-term investments. This way your money will work for you. Start contributing in long-term savings. Insure yourself through life and health insurance.

Once married, your concern is your family. What if something happens and the income stops? Take a suitable income protection cover so that, after you, the family lifestyle does not suffer.

Stage 2 – Accumulation Phase (age 35-50)

This is the stage where your income has increased and so has the lifestyle. Along with it, responsibilities have also increased. You are more concerned about your family and children because you probably run debts in the form of a home loan and a car loan. At this stage, you may look at saving for your children’s future – for school or University. You may be starting to repay your debts and reduce your mortgage, and will therefore maximise your accumulation.

You should take adequate health insurance to cover yourself and the family from that unexpected risk. Any unforeseen happenings can snatch-away the lifestyle your family has been accustomed to. You are now at a wealth building stage. Keep your investments in growth Assets which deliver maximum returns in the long term. Re-evaluate your strategies, if required.

Stage 3 – Decumulation Phase (Age 50-65)

This is the stage when your family is becoming independent. Your earnings are at their peak and you are approaching retirement. You are preparing to distribute your wealth among your family. Try to pay off all your debts prior to your retirement. You would not like to service any debt post retirement. Check your asset allocation. Since post retirement you may not have a regular income, start evaluating your options. Review your investments to ensure they give you the benefits you have desired for. Remember, living longer is also a risk, if not planned well. Thus, it’s necessary that post-retirement, you choose the options very wisely. and plan for possible care options.


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