The best
way to enjoy your retirement in Singapore is to be secure
with your finances. This may be a challenging task for some
Singaporeans. Fortunately, there are certified financial planners
who can help you properly prepare your retirement plan.
To achieve your ideal lifestyle during your retirement
years, it is important to properly understand and prepare for your
finances. Here are five important questions that you
can ask your financial
planners about your retirement.
Retirement Question #1: How much do you need to save?
One of the most immediate concerns to address when
planning for your retirement is how much you need to save. Tell
your financial planner about the kind of retirement lifestyle you
envision. Do you plan to acquire your own home or to continue
renting? Do you plan to travel or to stay close to
your children? Your financial planner can factor in these
considerations when computing how much you need to put into your
retirement plan each month.
There are already many tools available to help you make
your own computations. However, the financial planner can do a
better job in explaining how far your money can go. They can also
help you determine whether or not you are on the right track.
Retirement Question #2: How much CPF savings should you transfer to
your Retirement Account?
There are two CPF LIFE Plans for you to choose from –
the LIFE
Standard Plan and the LIFE Basic Plan. The plans differ on the
monthly payout you would receive; and the amount you would bequest
to your beneficiaries.
Depending on your desired CPF LIFE monthly payout and
your CPF balances, you can choose from a range of payout options
that best suit your needs in retirement.
For those who already own a property,
the *basic retirement sum of SGD 80,500 may be enough. However, for
those who still have to rent, the *full retirement sum of SGD
161,000 might be a better goal. Ask your planner whether or not the
*enhanced retirement sum of SGD 241,500 is advisable and
attainable.
Retirement Question #3: What are the other investment options aside
from CPF?
Discuss whether or not CPF is enough for you to rely
on. If not, ask your financial planner to look for other investment
options aside from CPF. Some examples may include
stocks, mutual
funds, bonds and insurance schemes
among many others. Of course, you may also set up your own
business, which can also be a great, albeit risky, investment.
Retirement Question #4: How aggressive or conservative should your
investments be?
Discuss with your financial planner the right balance
between aggressive and conservative investments based on your age,
assets, earning capacity, and goals. If you have a high salary and
can easily bounce back from any loss, then you may try more
aggressive investment options. On the other hand, if you have just
enough salary to handle your current financial obligations and can
only spare a small amount of excess cash, then you may want to try
more conservative investments.
Retirement Question #5: What other concerns should you
address?
Death is
inevitable for everyone. You can help lessen the burden and
heartache for your loved ones by addressing issues such as estate
planning early on. Gather all important documents such as including
life insurance, disability
insurance, long-term care insurance, retirement accounts, past
wills, investment accounts and any other asset documentation. Keep
your financial documents handy just in case the financial planner
needs to go over them.
This way, you can ensure financial clarity for yourself
during your retirement years, but also for your family in the
future.
Find out how much you need to retire with our Retirement
Calculator!
*The figures above are based on CPF LIFE Standard Plan payouts
computed as of 2016.
thenewsavvy