QUESTION: Here I am reading The Sunday Gleaner and realising that I do need to get my personal financial plan on track in terms of retirement. Retirement is in nine to 10 years time and I am shockingly behind. However, I am prepared to go for it.

- Marva

PFA: You are at the pre-retirement stage of the life cycle when your focus should be on consolidation. But, in your situation, you must do some accumulation. And you are prepared to "go for it." That is a good starting point.

Here are some suggestions.

Save like it is going out of style. Generally, this is the period of your life when your income is likely to be at its highest. Debts are usually low or non-existent and many family expenses should be lower than in previous periods. A higher level of discretionary income should make it easier to save.

Save by an automatic means, especially if the saving discipline is not a strong part of you. To do so, arrange for a portion of your salary to go directly to an investment or saving account. You are not likely to spend what is out of your immediate reach. This is probably the most effective way to save.

Save more by crafting a good and realistic budget. And stick to it. Adjust your budget for price increases. Make adequate provision for emergencies. Create non-cash income by doing as much as you can without having to pay somebody else to do it. Tighten up on your use of utilities and spend primarily on what is required to support your basic lifestyle. Spending to satisfy your wants cannot help you to save.

Risk more but be sensible. There is no need to be reckless. Try to increase your returns for inflation protection, but be aware that this comes with a higher level of risk. Confining your investment strategy to income-earning instru-ments, particularly low-yielding ones, does not protect your purchasing power. It may seem to protect your capital but still comes with risk.

Business can provide additional income if run successfully. Is there some skill that you can put to use to generate extra income? You could develop it further when you retire. Consider this only if you are comfortable doing so. Not everybody is comfortable with or prepared for the uncertainties and stresses of owning or running a business.

Manage your investments properly. If you doubt your ability to do so, get help from a competent and trustworthy professional, somebody who is highly recom-mended but by somebody you have good reason to trust. Avoid being too aggressive or too conservative. If you put your mind to it, you will manage.

Save taxes. Take advantage of the long-term savings account. Each financial institution has its own name for this five-year facility. You may save up to $1 million per year, but to qualify for favourable tax treatment, you must not withdraw more than 75 per cent of the interest earned in any year.

If you are earning tax-free income on insurance policies, for example, allow that to continue. Use taxable income before touching tax-free income if spending income ever becomes necessary. Gains on capital growth unit trusts, being tax-free, also provide another means to save.

Plan carefully. Determine how you want to live in retirement and how you will get to your goal. Write it down. Make it a step-by-step plan. It is easier to succeed and is less intimidating when you set yourself a series of small goals that lead up to the big goal. Do not expect to succeed if you do not have a good plan.

Plan to work longer, or to work part time in retirement, if necessary, and if health allows. With good health, you can use your knowledge and experience effectively long past the statutory retirement age. You could even start a new, satisfying career.

These will extend your period of accumulation and delay when you begin to withdraw from your nest egg, thereby increasing your chances of outliving your retirement funds. You should succeed if you work your plan.

Time is limited, but all is not lost. You may not be ready for retirement, but you are ready to do what you have to do to have a reasonable retirement. Go for it!

Oran A Hall is principal author of 'The Handbook of Personal Financial Planning'. For free advice on money matters, email: finviser.jm@gmail.com.