Either you plan to enjoy your retirement or you will retire from enjoyment.
~ Author unknown ~
During the first ten years into retirement, many retirees are still in an active phase. There can much travelling to see the world, play golf and tennis with friends, and much social activities.
The real slowing down starts if ill-health gets in the way or through the natural aging process. Generally, say from mid-seventies and above, the body is more susceptible to diseases. More money will be spent on medicine, doctor and hospital bills to sustain health.
For the working adult, the answer has to be right away. In fact there is much advantage to plan for retirement whilst young as it requires less money for the power of compounding to ensure your money grows if you have invested the money wisely.
If you were in your 50s and you now start to plan for retirement, you will need to be more conservative in your investments because you do not have time to re-earn the money should you lose part of it during a market slump.
This really depends very much on the life-style that you plan during retirement. If you basically wish to maintain the kind of life style that you have enjoyed during your pre-retirement years, and if your family is independent of you, then it is possible that you can discount the living expenses to perhaps 75% or less of your pre-retirement income.
It is estimated that 70-80% of working adult employees are participating in the compulsory savings scheme via the Employee Provident Fund which requires the employee to contribute 11% and the employer 12%.
If the money had not been used by the beneficiary, there should be a substantial sum upon retirement since the recent years EPF has been provided dividend payments around 6-7%.
Nevertheless, these are the questions need to find answer before rest yourself comfortably on the sofa.