The Scary Truth about Retirement
One of the key concerns of our life is outliving resources, especially when we hit 65 years old till 85. This period is crucial as we do not have ability to work and earn income, yet we need a have a decent monthly amount to keep up with inflation and our lifestyles.
Credit: Seedly.Sg
Is Retirement Planning your top priority ?
Credit: NTUC Income Retirement Survey
For Singaporeans aged 25-35 years old, priorities are centred on ensuring they have the financial means for their first property followed by money for daily needs, before saving for retirement. For aged 36 to 59, the number 1 concern is retirement !
Retirement Planning
Some Questions to ask yourself
Which age do I want to Retire?
In accordance with the Retirement and Re-Employment Act, the minimum retirement age is 62 years. Your company cannot ask you to retire before that age. The earlier you retire, the lesser years you have to accumulate your retirement funds.
|
How Much do I need to Retire?
A person retirement's needs will be approximately $293,400 or $1,630/month to support 15 years of retirement. With Inflation, one will need $482,400 or $2,680/month to support 15 years of retirement.
|
Will CPF Life be enough for me?
The Payout Eligibility Age, which is 65 years old, is the age CPF members can start receiving their retirement payouts.
If you have $181,000 in your RA at age 55, you should expect a monthly income of $1500 at age 65. You may need to cater for other sources of cashflow to support yourself in retirement. |
How do I gain more wealth?
One of Singaporeans’ favourite investment is properties, which generate a passive monthly rental income while enabling investors to also realise capital gains when the market performs well. Younger investors are increasingly turning to stock investments. Companies and Real Estate Investment Trusts (REITs) that provide regular dividends can also supplement your retirement income. However, during economic downturns, these two asset classes may be affected by market forces. This could strip you of passive income or a force you to realise a loss in asset value. |
Why are Retirement Income Products getting popular?
Another way you can add an income stream in your retirement is by purchasing a retirement product, which provides a regular stream of guaranteed monthly income from ages 55, 60 or 65 for a period of 15 or 20 years with the potential to receive non-guaranteed dividends. It will yield a regular income, with minimum volatility with the smallest downside risks. |
What kind of returns can I expect from Retirement Income Products
Retirement Income products are typically with-profits; they are structured as endowments, with a combination of guaranteed and non-guaranteed returns. |
Retirement Goals?
Chart the perfect course for your retirement
Tailored to suit your needsRetirement planning need not be a complex thing. You can choose when you want to receive your retirement income; 55, 60, 65 or 70. Choose how much you wish to receive during retirement. Choose your premium term; 5 or 10 years, or in a single lump sum.
|
Attractive returnsWith your monthly retirement income stream, you can enjoy your retirement the way you want to, without needing to depend on anyone. This guaranteed stream of income, is capital guaranteed, and is paid over 15 years, supplementing your CPF to give you more financial freedom.
|
Great Potential ReturnsYou will enjoy potential monthly dividend starting from your retirement age. Enjoy an attractive potential yield of up to 4.69% upon maturing as you plan for your future, An extra bonus to add to your retirement funds or a small token for your family upon maturity, death or surrender of policy.
|
Interested to know more. Leave a contact with us.
|
|
|
“Retirement is like a long vacation in Las Vegas. The goal is to enjoy it the fullest, but not so fully that you run out of money.” – Jonathan Clements
