In truth, it is unusual even for retirees to stop working completely. Most people keep working in order to maintain a healthy mind and body, as well as ensure a healthy social circle. And, yes, for some income. Singapore is as expensive place to retire — there’s no denying that. However, it’s still important to plan your savings and investment as if you will actually stop working in your later years. Here are three reasons why.
While employers are required to offer re-employment up to the age of 65, there is no guarantee that they will not reduce your pay. It’s not ideal, we know. It’s best to brace for a pay cut of 20 to 30 per cent, as most people earn less as they get older.
This is the most unpleasant of the lot. In the event of an accident or disability, continuing to work may be out of the question. Even without such occurrences, some lines of work are unforgiving to the elderly. You need to be realistic about how long you can keep working because of the hours, skills that keep you relevant, and the fact that your body isn’t going to be young forever.
Or grandchildren. If you have aspirations to pay for their university fees, for example, you may need more than a paycheck provides — even if you work past retirement. You might not have grand plans on how you’ll provide for kids or grandkids at this point, but it’s always good to know there’s an option to do so if you choose to later in life.
For these reasons, it is important to save even if you plan to keep working. An old saying about money is that it's "better to have it and not need it, than to need it and not have it". It’s just a life truth.
A simple insurance policy of a few hundred dollars a month can provide you a much more comfortable retirement. And the earlier you get yourself started, the less you’ll actually need to put away each time. More importantly, if you wake up one morning at age 65 and decide you actually don't feel like working anymore, you'll have the option to do just that.
These insurance products are underwritten by Manulife (Singapore) Pte. Ltd. (Reg. No. 198002116D). This advertisement has not been reviewed by the Monetary Authority of Singapore. Buying a life insurance policy is a long-term commitment. There may be high costs involved if you terminate the policy early, and your policy's surrender value (if any) may be zero or less than the total premiums paid. Buying health insurance products that are unsuitable for you may affect your ability to finance your future healthcare needs. This advertisement is for your information only and does not consider your specific investment objectives, financial situation or needs. It is not a contract of insurance and is not intended as an offer or recommendation to purchase the plan. You can find the full terms and conditions, details, and exclusions for the mentioned insurance product(s) in the policy contract.
This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the LIA or SDIC web-sites ( or ).
We recommend that you seek advice from a Manulife Financial Consultant or its Appointed Distributors before making a commitment to purchase a policy.