With increased living costs and higher life expectancies, millennials – those born between 1981 and 1996 – could find themselves working far into their retirement years. Some might find themselves questioning the very concept, while others might feel retiring is not an option.

Everyone’s definition of retirement is different, so the first step is to figure out what you want. You might want to keep working on your own terms, or you might choose to travel, or simply take things easy until the end of your days.

Regardless, make sure you have a steady stream of income or enough savings to keep your golden years stress-free. Here are some ways to plan for your future.

1. Define your numbers

Begin by calculating:

• how much would you spend every month during retirement?
• how many more years will you be likely to work for?
• how many more years are you likely to live for?

With these numbers, you will have a clearer idea of the reality you are working with.

2. Start saving

It’s a good idea to put as much money as you can into a retirement account regularly. If you start saving at 25, you will earn about 40 years’ worth of compounded interest on top of your saved amount.

3. Revisit your spending

Compounding interest is both your best friend and your worst enemy. While you stand to gain by saving from young, be aware that the more debt you have, the more it, too, will snowball.

4. Protect yourself and loved ones

An emergency fund serves as a safety net for you and your family, in case of unforeseen circumstances that necessitate rapid access to cash. Save a portion of your income for contingencies.

It is also important to have comprehensive insurance. Look into the various types available, such as life, home and medical, and make sure you and your loved ones are covered.

Keep in mind that when you are young and healthy, your premiums will be low.

5. Build an investment portfolio

Put the rest of your money into investments. Diversify assets among debt and equity investing channels, and put some money in assets that generate income as they increase, such as stocks or gold.

Take advantage of mutual funds, fixed deposit accounts, as well as your EPF. By shifting your mindset, changing your spending habits and building a solid long-term financial plan, you stand a good chance of a fulfilling future.

This article first appeared in MyPF. Follow MyPF to simplify and grow your personal finances on Facebook and Instagram.