5 Must-Knows Before Unlocking Your Retirement
They say that the best way to predict your future is to create it. We say there’s no better way to start unlocking your retirement with these 5 facts which may be just what we need to understand the importance of planning ahead.
Retirement and Re-employment Ages will Rise
As mentioned in the National Day Rally 2019 by the man himself, retirement and re-employment ages will rise to 65 and 70 by 2030. Oh, and this is on the assumption that you actually have an employer that is willing to even let you work for that long. But how able bodied would you actually be by then? (Tang, 20193)
Family Support Shouldn’t Be Your Safety Net
A recent survey on Household Expenditures showed that financial contributions from children, relatives and friends living elsewhere made up only 32% of the total income of a retiree’s household on average. Let’s not forget the recent dip in fertility rates, which means smaller families and more single Singaporeans as yet another contributing factor to this, which leaves us wondering how much would be have to make up for it on our own? (Ng, 20195)
You’re Probably Already Late in Your Planning
We all seem to agree that planning ahead is important, but did you know that Singaporeans under 40 still tend to brush aside their plans for retirement? Studies show that most Singaporeans only get down to savings for their retirement at 38, of which only 2 out of 5 are confident of saving enough. (Tan, 20182)
There’s More to Savings Than Just Saving
Diligently contributing to your piggy bank may seem like a fool proof plan, but what about factors such as inflation? The best strategic way to avoid this curveball is to consider investing your funds wisely to help counter inflation, with the advice of your Manulife Financial Consultant. (Tan, 20182)
The Cushier Lifestyle You Want, The More Cash You’ll Need Now
How do you see yourself growing old? Living comfortably with just enough to get by? Pursuing all the things you never had the chance to do, or living the high life on a beach in Koh Samui? You’d be surprised at how each choice differs significantly in terms of the income you’ll need right now to support it later.
It’s not rocket science to figure out that the lux life you’re dreaming of will need a high-paying job now. (Cole, 20191)
So what comes next? Perhaps trying something a little fun and hands-on might be just what you need to find out more! Rally your friends and play the Manulife Vault Game, where you could win a Retirement plan worth up to S$250,000! Terms & Conditions apply.
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 (www.lia.org.sg or www.sdic.org.sg).
We recommend that you seek advice from a Manulife Financial Consultant or its Appointed Distributors before making a commitment to purchase a policy.
https://www.businessinsider.sg/how-to-retire-by-40-2017-6/2 - Tan, L (2018, November). 8 Myths About Retirement. Retrieved from: Straits Times
https://www.straitstimes.com/business/invest/8-myths-about-retirement3 - Tang, S.K (2019, August). NDR 2019: New retirement, re-employment ages of 65 and 70 by 2030; higher CPF contributions for older workers. Retrieved from Channel News Asia:
https://www.channelnewsasia.com/news/singapore/ndr-2019-retirement-re-employment-age-cpf-contribution-118191744 - Money Sense (2018, October), CPF For Your Retirement, Retrieved from Money Sense:
https://www.moneysense.gov.sg/articles/2018/10/managing-cpf-for-your-retirement5 - Ng, J,S (August, 2019). (Ng, 2019) The Big Read: The dreaded ‘R’ word — why Singaporeans need to start thinking seriously about retirement. Retrieved from Today Online: