Skip to main content Skip to notification content

This content was contributed by Manulife Investment Management (Singapore) Pte. Ltd

Shaping the ideal income-and-expenditure curves

07 September 2021 | 2-mins read

The COVID-19 pandemic has caused people to pay closer attention to their health. Many have become passionate about weight control and achieving the ideal body shape. Have you considered that your income and expenditure curves also need to have an ideal shape?

We describe below the actual and ideal versions of the income and expenditure curves. In reality, when a person earns enough to cover any expenses and is financially prudent throughout their working life (around 30 to 40 years), they could have surplus cash for savings and investments (the portion where the income curve lies above the expenditure curve, as highlighted in light blue). However, the crucial question is: Without a regular income, will the surplus be enough to support your living costs during retirement?

Ideally, both the income and expenditure curves should be reshaped. In other words, the income curve should become steeper, with investment income helping extend its end point beyond retirement. And if you spend less, the expenditure curve should be flatter and remain below the income curve, even after retirement.

It is crucial to create a higher surplus by widening the income and expenditure gap (the portion where the ideal income/actual expenditure curve lies above the actual income/ideal expenditure curve, as highlighted in light pink), paving the way for an ideal and relaxed retirement.

For illustrative purposes only. The chart does not represent the income and expenditure of any individual.

Important note:

The information provided on this website is for informational purposes only and is intended solely for use by Singapore residents and is not intended for distribution to, or use by, any person or entity in the United States, or any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Manulife Investment Management (Singapore) Pte. Ltd. (Company Registration No. 200709952G), Manulife (Singapore) Pte. Ltd. (Company Registration No. 198002116D) and/or its affiliates (collectively hereafter "Manulife") or any of Manulife's products or services to any registration requirement within such jurisdiction or country. Nothing on this website shall be construed as financial advice or an offer, invitation, solicitation or recommendation by or on behalf of Manulife to any person to buy or sell any Fund and is no indication of trading intent in any Fund managed by Manulife. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Want to know more?

Speak to our financial consultant from Manulife Singapore.

Let's arrange for a no obligation chat with our financial consultant now!

  • This is a required field
  • Thank you for contacting Manulife Singapore!

    Our Financial Consultant will be in touch with you soon.

    Here are some links you might find useful.

    Our Insight  Articles

    Manulife Singapore Solutions

    Latest Customer Offers



    Please excuse us. Something went wrong.

    Please try again in a few moments.

    Return to Home

    More Insights you might find interesting

    Guide to retirement planning for young adults

    Read More

    3 reasons why you need to plan for your retirement early 

    Read More