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Many of us put off retirement planning – possibly thinking that it is still early days for us. Some of us may not even know where to start. When we commit to making calculated steps forward, no matter how small, we can make retirement planning more digestible and instil the discipline required to succeed over the long term. The earlier we start investing, the more time our investments get to compound in the financial markets. Historical data supports this assumption, as the S&P 500 index, a benchmark for the overall U.S. stock market, has averaged an annual return of 13% over the past 10 years and approximately 10% over the past 20 years ​. Although a common caveat we see is that historical figures are not indicative of future performance, the long track record highlights the potential benefits of investing consistently from a young age. To depict what a difference our investment horizon can make, let’s take two 25-year-old first jobbers, Alice and Ben, as examples. Alice starts investing $250 a month when she graduates. Ben, does not invest at all for the first 15 years. To catch up, he invests 4x what Alice does – $1,000 a month – thereafter. At the end of 30 years, when they are 55, Alice would have contributed $90,000 to her portfolio, while Ben would have invested $180,000. If we assume the markets return 8% p.a. on average, Alice’s portfolio will have grown to nearly $340,000 at the end of 30 years. Ben will have accumulated less than $326,000. Even though Ben Alice did ($90,000 vs $180,000), he still ends up with than what Alice has accumulated in retirement savings after 30 years. The graph above may depict an unrealistic outcome where our investments are growing each and every year. In reality, the financial markets can fluctuate by a great deal. To minimise the adverse effects of these price fluctuations on our portfolio, we can dollar-cost average (DCA) into the markets. Breaking up our investments into smaller regular sums, means we do not need to time the market, and yet take our emotions out of building our investing pot. When the market goes up, we will buy fewer investment units; when the market goes down, we buy more investment units. In the long run, we can reduce the impact of price volatility in achieving our returns. This is a lesson we can learn from how markets have moved in the past, especially during market crashes. In the chart below, we can see at least five occasions when the S&P 500 Index dropped 20% since the mid-80s. Source: Google Finance If we had invested a big lump sum right before the market crashes, we would have seen our investment value drop 20% very quickly. Instead, investing a smaller amount regularly, even through market crashes, would enable us to invest at lower valuations. As we can also see in the chart above, the market recovered new highs on each occasion, bringing your average returns up. One way we can start investing regularly is via a regular premium investment-linked plan, as it can offer bonus units for an extra boost or cushion, and also provide a more accessible entry into a range of portfolios and/or individual funds while pursuing these investments independently may typically require higher starting sums. One such investment-linked plan is Etiqa’s . By investing a small sum from just S$200 a month , we can start to invest in 4 risk-based, broadly diversified portfolios (Conservative, Moderate, Growth and Aggressive) and over 35 funds. This  gives us access to a wide range of investment choices covering not just asset types but geography as well such as global, regional and country focused funds. Find out more about Etiqa’s funds and check their prices . Source: Etiqa Source: Etiqa, as of 21 Aug 2024 This approach aims to help you meet your investment objectives by aligning with your risk profile and providing access to a range of carefully selected funds and constructed portfolios. We can also look forward to a range of bonuses to beef up our portfolio over the years. When we invest in Etiqa’s , we can get These bonuses can go a long way towards offsetting the policy charge – starting from 2% p.a. for the first 10 years, 1.6% p.a. for the following 10 years, and 0.6% p.a. thereafter. To meet our financial goals, ever-changing needs and different risk profiles, Etiqa’s Invest smart flex also offers flexibility in various aspects: While growing our wealth may be more exciting, protecting our wealth can be equally, if not more important. Unlike most other regular investments that we make, ILPs come with a form of wealth protection. With Invest smart flex, we will receive the higher of 105% of our net premiums paid or our account valuef something unforeseen were to happen to us. This means that our beneficiaries will not get less than 105% of what we’ve put into the investment – no matter how the financial markets perform. For those interested in starting your regular investing journey with , have a quick chat with an Etiqa Assurance Manager and get SGD 20 cash for your time. Singtel and Etiqa are also currently offering an extra sweetener if you invest with them – up to SGD 2,500 cashback or the option to bundle the plan with Singtel Growth Assure to enjoy 6.88% p.a. guaranteed maturity returns and extra cash bonus !