Retirement can be a time of freedom – or financial vulnerability.

Imagine stepping into your golden years with complete peace of mind – secure, independent, and able to enjoy the life you’ve worked so hard to build. Now imagine the opposite – financial uncertainty, mounting healthcare costs, and regrets over missed planning opportunities.

The reality is, Singaporean women live an average of 85.9 years. That’s nearly three decades of life after retirement. Without a solid financial plan, this extended life expectancy can become a serious challenge rather than a celebration.

It’s time to take control. Here’s how to secure a retirement that reflects the life you deserve.

1. Define Your Vision of Retirement

Retirement isn’t just about leaving work behind – it’s about designing a life that excites and fulfills you every day. Will you travel? Spend more time with family? Explore personal passions? Defining this vision clarifies  the financial resources you’ll need.

A clear roadmap empowers better planning and helps you avoid the guesswork that often leads to financial strain later in life.

2. Know Your Numbers – Calculate Your Retirement Needs

Vague savings goals won’t protect your future. The first step in financial planning is to get a good grasp of your cash flow – the inflows (i.e. income) and the outflows (i.e. expenses). 

Break down your anticipated costs:

• Essential Living Expenses: SGD 2,000 – SGD 2,500 per month for a modest lifestyle. (This excludes rent, insurance premiums, indulgences and travels.)
• Healthcare & Insurance: With medical inflation averaging 5% – 10% annually, coverage matters. Adequate insurance ensures that you are shielded from life’s unexpected financial surprises.  
• Inflation Impact: Singapore’s inflation averages 2% per year – small yet powerful over time. For planning purposes, it may be prudent to assume 3% per annum. 

The above is ‘high-level’. When I run through expenses with a client, I use a detailed checklist that will capture all of his or her expenses.

Most people would underestimate their expenses in retirement. Depending on the lifestyle that you wish to pursue, you may be spending more than while you were working. Hence, it’s important for you to be realistic and I would suggest that you add a little buffer as well in the planning.

The Fidelity Global Women & Money Study 2023 revealed:

✅ 89% of women in Singapore worry about the rising cost of living.
✅ 80% fear they won’t have enough saved for long-term financial security.
✅ 75% are anxious about their ability to save and invest.

3. Build a Resilient Investment Portfolio

Savings alone won’t get you far in retirement – your money needs to grow while protecting against risk. A well-structured portfolio includes:

• CPF LIFE: Lifelong payouts of around SGD 1,000 – SGD 3,300 based on your retirement sum.
• Endowment Plans, Annuities: Guaranteed returns for stability. Lifetime income payouts.
• Stocks, Bonds & Unit Trusts: Growth potential with risk management by professional fund managers.

4. Maximise Your CPF – Your Built-in Retirement Anchor

CPF isn’t just a payroll deduction – it’s a powerful tool for retirement security.

• Top Up Your Special Account: Benefit from risk-free returns.
• Explore the Retirement Sum Scheme: Structured monthly payouts.
• Consider CPF Voluntary Contributions: Strengthen your financial safety net.
• Invest idle CPF-OA savings: This can further set your money to grow beyond the 2.5% p.a. interest.

Above are a few suggestions for you to build your CPF nest egg. Before you take any decisive step, it is advisable to speak with your financial planner to see how it fits with your overall retirement plan. 

5. Safeguard Against Life’s Unpredictability with Insurance

A single medical event can devastate your savings if you’re unprepared. Protect your financial health with:

• Integrated Shield Plan: To cover significant hospitalisation costs.
• Critical Illness Coverage: Providing SGD 1 million or more for major conditions.
• Long-Term Care: Enhance your CareShield Life to boost monthly payout of up to $5,000 for severe disability.

Insurance isn’t an expense – it’s a shield against life’s uncertainties.

6. Estate Planning – Your Legacy, Your Control

Estate planning ensures your hard-earned wealth benefits those you care about most.

• Draft a Will: Avoid ambiguity and family disputes.
• Complete CPF & Insurance Nominations: Ensure smooth distribution of assets.
• Set Up a Lasting Power of Attorney (LPA): Secure decision-making power in case of incapacitation. 
• Note: Though not compulsory, it is recommended to also get the Advance Medical Directive (AMD) done. And increasingly, people talk about their Aging Care Plan (ACP) with their loved ones. 

Estate planning isn’t just about wealth – it’s about protecting your family’s future and ensuring your values endure.

7. Common Pitfalls to Avoid

• Procrastination: Time is your greatest financial ally – start now!
• Underestimating Costs: Inflation and healthcare costs can quickly erode your savings.
• Relying Solely on CPF: CPF is vital but may not fully cover your desired retirement lifestyle.

Take Ownership of Your Financial Future – Starting Today

The best time to plan was yesterday. The second best time? Right now.

Your golden years should be a time of fulfillment, not financial worry. Take control today and ensure your future self enjoys the secure, dignified retirement you’ve earned.

Ready to build your personalised retirement strategy?

Let’s create a financial plan tailored for you – one that empowers you to live your golden years, your way. Reach out today for a consultation that puts your future first.