Building Momentum in your 40s to 50s
Strengthening your finances 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.
Understanding your mortgage status is an important factor when 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.
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.
Optional Steps
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.
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.
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.
To receive a higher level of CPF payouts, you can top up to your CPF Special Account and earn up to 5% p.a. risk-free interest (before age 55) or top up to your CPF Retirement Account and earn up to 6% p.a. risk-free interest (55 and above).
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.
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.
Click below to download MoneyOwl’s End‑of‑Life and Estate Planning e-book to learn the essentials of estate planning and how to ensure your assets are distributed according to your wishes.
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 CPFSetting 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.
Our Financial Calculators
Explore calculators to assess your financial needs
