Retirement Planning Singapore
What is your retirement goals? Receive monthly amount of $2,000 or more?
At what age do you want to retire?
What kind of lifestyle do you want to live upon retirement?
We will discuss this to let you have a clearer idea on how to plan for your retirement.
What Is Retirement Planning?
The definition of retirement planning is about understanding your retirement objective and putting in place a savings program or strategy so that upon reaching your desired retirement age, you will live the lifestyle that you want.
And the goal is to achieve financial independence upon your retirement age so that you can live the lifestyle you want without worrying about money.
Before we determine and proceed to plan for your retirement, we need you to establish and think through a few points:
- What is your desired retirement age?
- What is the lifestyle that you want?
- How much monthly income do you want to receive?
- How long do you want your income to continue pay you till?
After establishing what you want, at your current age, how much are you willing to set aside to make sure that this retirement plan works for you when you reach the desired age?
The earlier you start to look at retirement planning, the chances of achieving your retirement goals is higher.
How Much Is Enough To Retire In Singapore?
So, what is the cost of retirement in Singapore?
With the understanding that the life expectancy statistics in 2016 for female is 85.1 and 80.6 for male in Singapore, you have a better idea of how long do you need for your retirement funds.
Assuming that the return on investment during retirement = 4%
Average inflation rate = 3.5%
The CPF retirement estimator estimates that you will need is $1.5 million when I turn 65 years old.
Take a look:
The figure, $1.5 million, sounds like a very huge figure to digest. You might want to stay ignorant about it, but it is going to happen when you reaches that age.
Just think about it:
Last time, how much does your parents pay for the current house for?
I’m not sure about you, but, 30 years ago, my parents bought the 4-room Housing Development Board (HDB) flats for $30,000.
Do a comparison to the houses that is sold in the market today.
The last time that I saw, my parent’s house is valued at about $500,000.
What is it going to be like in the future?
More specifically, when you retire, 20-25 years from now?
Think about it…
Retirement Planning Calculator
How much retirement funds do you need at age 55?
How much retirement funds do you need at age 65?
How much savings do you need at age 40?
These are heart burning questions for a lot of you and wonder how much exactly do you need for your retirement at your desired retirement age.
You may use the following CPF Retirement Calculator to have an estimation of how much funds you need upon your retirement age.
Is CPF Savings Enough For Retirement For Singaporeans?
Central Provident Fund (CPF) has an online tool called CPF Life Payout Estimator.
This online tool will allow you to know what kind of plans, either standard or basic, that CPF Life provides when you turned 65 to 70 years old.
It is a national annuity plan that provides some form of retirement planning for Singaporeans.
We have generated using the online tool for a 55 years old male with his retirement account of $60,000.
Here are the estimation:
For Standard Plan, this person will receive between $551 to $603 per month from age 65 onwards.
For Basic Plan, this person will receive between $503 to $551 per month from age 65 onwards.
Do you think this is enough for you and your lifestyle when you retire at 65 years old?
If I Want To Retire Early, How Much Do I Need?
Retirement has evolved along the years and today, it is commonly also known as financial independence. It means to say that as long as your finances is enough to support your lifestyle, you have achieved financial independence even if you do not need to work.
And if you plan to retire earlier than the average citizens, you need to plan earlier ahead. More often, it is NOW.
Whatever your age is.. 25, 30s, 40s…
You have to start your planning way ahead and with proper financial planning, you will be able to achieve financial independence earlier and therefore, retire earlier.
How To Plan For Retirement In Singapore?
There are various types of annuity and retirement plans that is provided by different insurers in Singapore.
The plans will layout an accumulation period – the period when you start to accumulate the funds (e.g. 25 to 65 years old) from your current age to the retirement age.
The payout period will be from your desired retirement age to the maturity of the retirement plan (e.g. 15, 20 or 25 years).
For the person to have a higher payout amount during retirement, the accumulation period will require a longer time. Sadly, a lot of people will usually think about retirement when they turned 50. And they only have that 10-15 years to accumulate their wealth and therefore, their payout per month will usually be much lesser.
Therefore, we strongly encourage you to take action now and speak to our financial planner so that we can draft out a financial strategy to make sure that you have the best retirement plan.
Financialogy is a platform to allow Singaporeans to understand more about financial planning. We believe that everyone deserves to have a proper and detailed understanding about how to protect their finances and maximise their returns.
When it comes to retirement, we strongly encourage them to start early so that they can develop a financial strategy to make sure that they have enough finances upon their desired retirement.
Want To Know More About Us?
If you would like to know more about us, you may contact us at (+65) 9380 2839 or you can click on the button below to enquire about the different financial services that we provide.
Act Now To Secure Your Retirement
Products & Services
- Life Insurance
- Term Insurance
- Health Insurance
- Keyman Insurance
- Mortgage Insurance
- Whole Life Insurance
- Endowment Insurance
- Critical Illness Insurance
- Hospitalisation Insurance
- Early Stage Critical Illness Insurance
We are a licensed and certified financial planner in Singapore that provides a comprehensive financial planning solutions to meet all your financial and insurance protection needs.
Address: 47 Scotts Road, Goldbell Towers, Singapore 228233
Contact Number: +65 9380 2839
It is frustrating when you are diagnosed with high blood pressure or cholesterol, insurance companies no longer want to cover you. You are no longer eligible to purchase anymore new policies. I have a good news for you! There's a company that still want...read more
Are you comparing between Housing Development Board (HDB)'s Home Protection Scheme (HPS) and private mortgage insurance offered by private insurers? We will provide you with the advantages and disadvantages of purchasing a private mortgage insurance with...read more