“Don’t simply retire from something; have something to retire to”. ~Harry Emerson Fosdick
Retirement is something we seldom think about. We are busy with everyday lives that we have no time to plan ahead. But at some point, usually after age 50, we will have to face the reality that our health may not be strong enough to sustain us working for the next 30 years. We will have to take a slower pace of life and enjoy the finer things in life. We may even want to pursue something entirely new, a passion which we have always dreamed of doing.
Some retirement desires expressed by Singaporeans include:
Spending time with friends & family
Travel extensively
Continue to work to some extend
Learning a new skill/hobby
Volunteer work
Writing a book
Start a business
I have worked out the retirement numbers if we want to work and retire in this city state Singapore. Based on research by HSBC, a person desires about $4,000 SGD (today’s dollars) to retire comfortably. Our little red dot is one of the most expensive cities to live in the world. Not to mentioned increased healthcare costs when we enter into old age.
Therefore, there are 3 essential things we need to retire:
Health insurance
Disability insurance
Adequate retirement savings
Most Singaporeans are well covered in the area of health and disability insurance through our Medishield Life and Eldershield schemes. But statistics show that our CPF Life is insufficient for us to retire. In the HSBC report, we have on average 10 years of retirement funding gap. It means we have to depend on national welfare, our family members, or continue to work in our old age to sustain our living for the 10 years of retirement funding shortfall.
Other stark statistics by HSBC report include:
> 53 per cent of working-age Singaporeans said they are unable to retire comfortably
15 % believe they will never be able to fully retire
With the benefit of hindsight, 41% of retirees say that they would have saved more and started earlier
Only 25% of Singaporeans have implemented a retirement plan, while another 25% are still at the planning stage.
50% do not have a concrete retirement plan in place.
Thus, it is extremely important to plan and start early to save for our retirement, apart from our CPF. Imagine, if you need $4,000 per month to survive today when you are aged 35, you will need $12,973 per month to maintain the same standard of living at age 65. It means a total of $3 million if you live till 85 years old.
Many Singaporeans are unable to reach this amount if they only rely on their CPF and their property for retirement. Therefore we desperately need a realistic strategy to retire well in this sunny island. Our government is concerned, and we as responsible individuals need to plan and start NOW!
Aaron Graham Tay
Certified Financial Planner™
***Aaron speaks on “Practical Retirement Funding Strategies” every first Saturday of the month, 10am to 12pm, at 78 Shenton Way.
It is complimentary. Do contact Sharon at 9741 7955 to register NOW!
Retirement Realities in Singapore
“Don’t simply retire from something; have something to retire to”. ~Harry Emerson Fosdick
Retirement is something we seldom think about. We are busy with everyday lives that we have no time to plan ahead. But at some point, usually after age 50, we will have to face the reality that our health may not be strong enough to sustain us working for the next 30 years. We will have to take a slower pace of life and enjoy the finer things in life. We may even want to pursue something entirely new, a passion which we have always dreamed of doing.
Some retirement desires expressed by Singaporeans include:
I have worked out the retirement numbers if we want to work and retire in this city state Singapore. Based on research by HSBC, a person desires about $4,000 SGD (today’s dollars) to retire comfortably. Our little red dot is one of the most expensive cities to live in the world. Not to mentioned increased healthcare costs when we enter into old age.
Therefore, there are 3 essential things we need to retire:
Most Singaporeans are well covered in the area of health and disability insurance through our Medishield Life and Eldershield schemes. But statistics show that our CPF Life is insufficient for us to retire. In the HSBC report, we have on average 10 years of retirement funding gap. It means we have to depend on national welfare, our family members, or continue to work in our old age to sustain our living for the 10 years of retirement funding shortfall.
Other stark statistics by HSBC report include:
Thus, it is extremely important to plan and start early to save for our retirement, apart from our CPF. Imagine, if you need $4,000 per month to survive today when you are aged 35, you will need $12,973 per month to maintain the same standard of living at age 65. It means a total of $3 million if you live till 85 years old.
Many Singaporeans are unable to reach this amount if they only rely on their CPF and their property for retirement. Therefore we desperately need a realistic strategy to retire well in this sunny island. Our government is concerned, and we as responsible individuals need to plan and start NOW!
Aaron Graham Tay
Certified Financial Planner™
***Aaron speaks on “Practical Retirement Funding Strategies” every first Saturday of the month, 10am to 12pm, at 78 Shenton Way.
It is complimentary. Do contact Sharon at 9741 7955 to register NOW!
Aaron Graham Tay
Next Article5 things you MUST know about life insurance