Life Stages - Retirement

Which stage are you in now?

Starting Strong Checklist

Explore the personalised checklist to help you navigate this chapter of your life with ease.

Do These Now

Take these essential steps to get started on your journey.

1. Find out about the “3 Must-Haves” in Retirement

What’s needed for a secure retirement

The 3 must-haves when you start retirement are:

A home to live in – preferably one which is fully-paid off
Medical insurance and savings for healthcare expenses
Lifelong income for living expenses

Click below to read the article for more information.

2. Learn How SRS work and Whether You Should Contribute

Optimize your tax savings and grow your SRS retirement fund

SRS (Supplementary Retirement Scheme) is a voluntary scheme to encourage us to save for retirement, over and above our CPF Savings. Contributing to it helps you enjoy a certain amount of tax savings, in terms of Tax Relief.

Understand how SRS works

Click below to view an easy-to-understand visual guide on SRS account.
Visual Guide to the SRS | MoneyOwl

Use IRAS’s calculator to see how much you can save if you were to contribute to SRS.
IRAS Calculators

3. Consider Topping up CPF Special Account Annually

Top up to enjoy tax reliefs and a risk-free interest of up to 5% p.a.

Your CPF savings will provide you with a lifelong stream of monthly income from age 65. The more CPF savings you have, the higher your monthly retirement payouts will be.

Read our article for the benefits and considerations in topping-up your CPF
Have You Topped Up Your CPF Yet? | MoneyOwl

Understand how CPF top-up works and how to make a transfer

Click on the button below to visit CPF’s website for more information on cash top-ups.

Take Additional Steps

Ready for more? Consider these additional steps for further peace of mind.

4. Build Your Nest Egg for Additional Income Stream

Save and invest your cash for additional retirement income

While CPF LIFE payouts form the foundation of your retirement income, you can build additional income. Assess various options based on Certainty, Probability, Flexibility and Accessibility (“CPFA”).

Invest in suitable low-cost, globally diversified market-based portfolios
Refer to our investment page here.
Park additional cash into low-risk instruments that are easily redeemable such as Singapore Savings Bonds (SSBs)
For those who do not prefer investments due to risks, can consider Retirement Income products to supplement their CPF LIFE Payout

Click below to download our Retirement Philosophy eBook which describes our “CPFA” framework.

5. Check what Medical Insurance You Have

The hospital ward class you are covered for

Having adequate hospitalisation insurance helps ensure that your savings will not be prematurely depleted from large medical bills.

All Singaporeans and PRs are covered under MediShield Life, and over 7 in 10 also have Integrated Shield Plans that pay for private care in hospitals.

Depending on your healthcare expectations, buy an Integrated Shield Plan when you are young, healthy and insurable.

Click on the button below to read more about Integrated Shield Plans

6. Find out about CareShield Life

Long-term care insurance for severe disability

If you are born in 1980 or later, you will be covered under CareShield Life when you turn 30 years old. CareShield Life is a long-term care insurance scheme that provides basic financial support when you develop severe disability.

Read our article to find on the differences between CareShield Life compared to the other national insurance schemes.
CareShield Life – What you Need to Know | MoneyOwl
For more information about Careshield Life, you can go to CareShield Life website by clicking on the button below

7. Getting Your Will Done

For a peace of mind in event of your untimely demise

In event of your untimely demise, the distribution of your assets will be determined by Singapore’s intestacy laws. This means that your estate may not be distributed according to your wishes.

Writing a will ensures that your wishes are clearly stated and provides protection for your loved ones.

Craft your Will using MoneyOwl’s Digital Will-Writing service

Building Momentum Checklist

Explore the personalised checklist to help you navigate this chapter of your life with ease.

Do These Now

Take these essential steps to get started on your journey.

1. Find out about the “3 Must-Haves” in Retirement

What’s needed for a secure retirement

When planning for retirement, these three essentials can provide peace of mind and financial stability:

A Home to Live In:
Ideally, entering retirement with a fully-paid home reduces monthly expenses and provides a stable living environment without the burden of a mortgage or rent.
Medical Insurance and Savings for Healthcare Expenses:
Comprehensive medical coverage and a dedicated healthcare savings plan ensure you’re prepared for unexpected medical needs or expenses that may not be otherwise covered by your integrated shield plans.
Lifelong Income for Living Expenses:
Building a reliable income stream, such as through CPF LIFE, annuities, or other retirement savings plans, supports daily living expenses throughout retirement, helping you maintain your desired lifestyle.

For more detailed guidance, click below to read the full article.

2. Check Your Mortgage

Find out when you will finish paying for your mortgage – one of the three “must-have”

Understanding your mortgage status is important factor while planning for your retirement. Knowing exactly when you’ll complete your mortgage payments can give you a clearer picture to plan ahead.

To review your housing loan information, follow these steps based on the type of loan you have:

HDB Loan:
If you financed your home with an HDB loan, you can easily check your mortgage details online. Simply log in to the HDB website to access information about your outstanding balance, loan term, and estimated completion date.
Bank Loan:
For mortgages obtained through a bank, the process varies slightly. You’ll need to reach out directly to your bank, to get the most up-to-date information on your loan status.

3. Check what medical insurance you have

The hospital ward class you are covered for

Having adequate hospitalisation insurance helps ensure that your savings will not be prematurely depleted from large medical bills.

All Singaporeans and PRs are covered under MediShield Life, and over 7 in 10 also have Integrated Shield Plans that pay for private care in hospitals.

Depending on your healthcare expectations, buy an Integrated Shield Plan when you are in good health.

Take Additional Steps

Ready for more? Consider these additional steps for further peace of mind.

4. Find out about long term care insurance

Options for long-term care insurance

1 in 2 healthy Singaporeans aged 65 could develop severe disability in their lifetime and need long-term care.

CareShield Life was introduced in 2020 to provide lifetime protection for basic long-term care needs in such scenarios. All Singapore residents born in 1980 or later are covered.

Consider whether to opt into CareShield Life and get supplements from private insurers to have higher coverage.

Click below to read more about CareShield Life.

5. Estimate how much you need during retirement

Work out how much you’ll likely spend during your retirement periods

Assess Your Current Expenses:
Start by calculating your regular expenses, including housing, groceries, transportation, insurance premiums, and other essentials.
Identify How Expenses Will Change in Retirement:
Consider which expenses may decrease, like work-related costs (commuting, office attire, meals), and which may increase, such as spending on travel, hobbies, or healthcare insurance.
Plan for Ad-Hoc Big Ticket Expenses:
Set aside funds for occasional but significant expenses, like a home renovation or a major vacation, to avoid financial strain during retirement.
Include a Buffer for Unexpected Expenses:
Unexpected costs, like medical emergencies or urgent home repairs, can arise. A financial cushion will help cover these without disrupting your budget.
Account for Inflation:
If retirement is still a few years away, factor in inflation to maintain the purchasing power of your savings over time.
Determine Your Safe Retirement Income Floor:
Calculate the minimum income you’ll need to cover essential expenses. This “die-die must have” amount represents the safety net required for a comfortable retirement.

6. Check if CPF Life can cover your basic expenses

Find out if CPF LIFE can cover your basic expenses

From age 65, you can start to receive monthly payouts through the CPF Lifelong Income For the Elderly (CPF LIFE) scheme.

To assess whether the CPF Life payouts will meet your basic expenses:

Estimate Your Retirement Income:
Utilize the CPF Retirement Payout Planner to project your monthly payouts based on your current CPF savings.
Consider Topping Up Your CPF Accounts:
If the estimated payouts are not enough, you might consider topping up your CPF Special Account (SA) or Retirement Account (RA). However, since CPF top-ups are irreversible, ensure that you only contribute funds specifically allocated for retirement purposes.

7. Find out how to build retirement income

Your cash savings and investments will form the additional layer of retirement income.

While CPF LIFE payouts form the foundation of your retirement income, you can build additional income. Assess various options based on Certainty, Probability, Flexibility and Accessibility (“CPFA”).

Invest in suitable low-cost, globally diversified market-based portfolios
Refer to our investment page here.
Park additional cash into low-risk instruments that are easily redeemable such as Singapore Savings Bonds (SSBs)
For those who do not prefer investments due to risks, can consider Retirement Income products to supplement their CPF Life Payout

Click on the button below to read for more details.

8. Getting Your Will Done

For a peace of mind in event of your untimely demise

In event of your untimely demise, the distribution of your assets will be determined by Singapore’s intestacy laws. This means that your estate may not be distributed according to your wishes.

Writing a will ensures that your wishes are clearly stated and provides protection for your loved ones.

Craft your Will using MoneyOwl’s Digital Will-Writing service

9. (Early 50s) Review your options for CPF Life

What you can or should keep in your CPF Retirement Account that is formed at age 55

As you approach 55, you can check the latest retirement sums and estimate how much they will be when you turn 55.

Get Personalized Assistance:
If you need more tailored guidance, the CPF Retirement Planning Service is available for members approaching 55. Schedule an appointment to receive advice directly from CPF Board experts, ensuring you’re fully prepared for a financially secure retirement.
Set up an appointment with CPF
Setting Aside Your Desired Retirement Sum:
Decide how much you’d like to set aside in your Retirement Account (RA), which determines the amount you can expect to receive from CPF Life payouts from age 65. Use the CPF LIFE Estimator to project your expected payouts based on your chosen retirement sum.

Click on the button below to find out more.

Golden Years Checklist

Explore the personalised checklist to help you navigate this chapter of your life with ease.

Do These Now

Take these essential steps to get started on your journey.

1. Re-assess your expenses & when you are likely to stop work

Review your expenses to see how they compare to your expected retirement income.

Keep track of how much you are spending each month and match it with your likely or expected retirement income, which may include your CPF payouts, retirement income insurance plan payouts and withdrawals from your savings and investments.

2. (Before 65) Review your CPF Retirement Account and drawdown plan

Review your CPF RA amount and drawdown plan, considering top-ups, withdrawal start date, and type of CPF LIFE plan.

As you near your CPF payout start age of 65, you can better estimate your monthly payout amount and get a clearer picture of your retirement expenses.

If you plan to work beyond age 65 or have other income sources, you can delay your CPF payouts up to age 70, boosting your monthly payout by up to 7% for each deferred year. You also have three CPF LIFE plans to choose from, offering different payout structures.
For personalized advice, members who are starting their CPF payouts are eligible to book an appointment with the CPF Retirement Planning Service.
Set up an appointment with CPF
Use the CPF Estimator to see if your CPF payouts meet your needs. If not, consider topping up your CPF Retirement Account for higher payouts.

For personalized advice, members who are starting their CPF payouts are eligible to book an appointment with the CPF Retirement Planning Service. Click on the button below to find out more.

3. Plan your Retirement Draw-down

Your cash savings and investments will form the additional layer of retirement income you will receive.

Contrary to popular intuition, you can still invest in markets during your retirement years. Given that an average retirement can span 15 to 20 years today, you have the time horizon to invest at least a portion of your savings that you do not immediately need in a balanced fund (60% equities, 40% bonds).

You can then withdraw 4% from your portfolio each year, which should last over 30 years.

Stay flexible and evaluate your plan annually or when needed. For example, if the market performs poorly, you cut down on some discretionary spend. If the market does well, you may be more inclined to draw down more to spend on some “nice to haves”.

Take Additional Steps

Ready for more? Consider these additional steps for further peace of mind.

4. Consider Monetising your Home

You can supplement your retirement income by unlocking the value of your property

If your CPF and cash savings are not enough for your retirement, you can consider monetising your home to supplement your retirement needs.

There are mainly 3 housing monetisation options to help you unlock the value of your home:

Rightsizing your home
When you sell your more expensive or larger home for a lower price or smaller home, you can optimise your living situation, reduce home-related expenses, and supplement your retirement income.
Renting out your home or spare bedroom
If you have an alternative place to stay, or if you have unused rooms in your home, you could rent it out for rental income.
HDB’s Lease Buyback Scheme
Selling back part of your remaining lease (HDB’s Lease Buyback Scheme).
Click on the button below for more details.

5. Review insurance coverage

After retirement, certain types of insurance may no longer be necessary and can be reduced.

Some types of insurance that may not be needed or can be adjusted after retirement:

Life insurance
The main purpose of life insurance is to provide financial support to your dependants should you pass away prematurely. If you have retired and your children are independent, your mortgage is paid off, and your spouse is financially secure, you may not need life insurance anymore.
Income Protection Insurance
This insurance replaces your income if you’re unable to work due to illness or injury – e.g. for Total and Permanent Disability. After retirement, since you’re no longer earning an income from work, this coverage is unnecessary.
Critical Illness Insurance
If you have substantial savings and an adequate hospitalisation plan, you might be able to self-insure against the financial impact of critical illnesses.
Downgrading your Integrated Shield Plans
As premiums increase exponentially in later years, you can consider downgrading your Integrated Shield Plan with the same insurer without additional underwriting. This can help preserve your healthcare savings especially after retirement.

6. Getting Your Will done

For a peace of mind in event of your untimely demise

In event of your untimely demise, the distribution of your assets will be determined by Singapore’s intestacy laws. This means that your estate may not be distributed according to your wishes.

Writing a will ensures that your wishes are clearly stated and provides protection for your loved ones.

Craft your Will using MoneyOwl’s Digital Will-Writing service.

Discover Insights from our Articles

13 Nov 2024

CPF

Singapore got a very good B+ grade in the global pensions ranking. Here’s how you (as an individual) can do better.

Learn tips to boost your retirement readiness by maximizing CPF savings, diversifying income, and planning for healthcare costs, ensuring financial security beyond Singapore’s B+ ranking.

Starting Strong in your 20s to 30s

Building Momentum in your 40s to 50s

Golden Years from your 60s onwards

Starting Strong Checklist

1. Find out about the “3 Must-Haves” in Retirement

2. Learn How SRS work and Whether You Should Contribute

3. Consider Topping up CPF Special Account Annually

Take Additional Steps

4. Build Your Nest Egg for Additional Income Stream

5. Check what Medical Insurance You Have

6. Find out about CareShield Life

7. Getting Your Will Done

Building Momentum Checklist

1. Find out about the “3 Must-Haves” in Retirement

2. Check Your Mortgage

3. Check what medical insurance you have

Take Additional Steps

4. Find out about long term care insurance

5. Estimate how much you need during retirement

6. Check if CPF Life can cover your basic expenses

7. Find out how to build retirement income

8. Getting Your Will Done

9. (Early 50s) Review your options for CPF Life

Golden Years Checklist

1. Re-assess your expenses & when you are likely to stop work

2. (Before 65) Review your CPF Retirement Account and drawdown plan

3. Plan your Retirement Draw-down

Take Additional Steps

4. Consider Monetising your Home

5. Review insurance coverage

6. Getting Your Will done

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