Retirement planning is not merely an exercise in looking at your current earnings and deciding you would like to have the same amount a month when you stop work.
Many aspects such as the change in your expenditure needs and your state of health have to be taken into account.
Les Jamieson, a senior manager at First National Trust, told the Star Investors Club this week that "bad habits and neglecting your health now may cost you dearly in retirement not only financially but in quality of life".
You should also consider how you will use the time you have always craved. "One can't play golf or fish every day. Hobbies play a major role, but you must have an urge to get up and go each morning."
The backbone of your financial plan should provide for your income, a certain amount of liquidity, and capital growth. This should be a personal plan to suit your own needs and aspirations, not those of your financial adviser or your friends.
Jamieson said you should begin with certain assumptions. Bearing in mind your current state of health, and the fact that men on average live to about 75 and women to about 80, you should work out roughly the life expectancy of yourself and your spouse.
Other assumptions should be the amount of capital you wish to preserve for your offspring or consume during your lifetime, the average inflation rate and interest rates which would affect both borrowings and investment income and the rate of increase of a pension.
Remember that certain of the fringe benefits you enjoy while employed will fall away. But, you will no longer have pension contributions, and your clothing and transport costs will drop. You can expect to pay more in medical expenses and have higher expenditure on hobbies and leisure activities, such as travelling.
Jamieson recommends providing yourself with an emergency or contingency fund.
Once you have worked out your budget, and consulted financial experts, you should implement it and monitor it at least once a year.
Your employment will provide you with income from a pension or provident fund, accumulated leave and deferred compensation.
Your own financial planning should provide you with income or capital from life assurance, endowments or retirement annuities, unit trusts, a share portfolio and interest-bearing deposits. You probably own your own property or derive income from a second property, and may also have inherited money.
"The real importance of securing your retirement future is looking after your health and developing healthy habits now," he said.
Jamieson stressed the importance of consulting professionals about your retirement and to help you draw up a financial plan, and of starting the planning process now, rather than later.