Retirement Planning Solutions

How can you  invest what you have now and what extra you can set aside each year to accumulate the funds for your retirement?  

These are questions we help you to answer considering your objectives, your risk tolerance and your financial resources. 

For those who are about to retire or have retired and have funds to invest, we help you identify product investments for your hard earned savings whether it be pension, gratuity or CPF. 

We all know too well stories of how hard-earned money can be wasted or lost in ill-chosen business or investments.

What you need is Lifetime Financial Security and the 2 main concerns are how to prepare for and fund your retirement?

You would need a plan that offers steady returns over a period of time as well as potentially higher returns than bank deposits. A retirement plan that provides :  

• Certainty of retirement income (savings that would not decrease)   
• Retirement income that grows as investment grows  
• Control over money  
• Income for life      

Retirement Planning & Solutions   

Saving for retirement. It’s now up to you 

3 critical questions facing today’s pre-retirees:

• How long will I live?   
• Upon retirement, how much should I (can I) withdraw each month/year?  
• How much do I need to save?  

Important factors governing retirement planning

• Having predictable retirement income so you know exactly how to spend 
• Being able to preserve retirement "nest egg" w/o taking undue risk  
• Having access to savings/investments in case of emergency  
• Maintaining control of investments w/ ability to change investments over time  
• Having investment has potential to grow/increase over time  
• Having guarantee on investments even if returns are lower  
• Returns on investments must at least match or exceed inflation 
• Having guaranteed income for life so that won't run out of money  

Having access to savings/investments in case of emergency & Having guaranteed income for life so that won't run out of money ranks the highest

Retiring investors are looking for a product that will deliver a predicable, sustainable and potentially increasing retirement income

• Certainty of retirement income – a known income drawn from retirement savings that will not decrease   
• Retirement income that grows as investments grow – the opportunity for investment participation and locking in gains  
• Control over money – withdrawals available if required   
• Income for life – the certainty of not outliving your assets  

Let us examine the current pillars of retirement funding in Singapore : 

1. CPF 

• majority do not meet the minimum sum at age 55 
• Singaporeans are asset rich cash poor 

2. CPF Retirement Income   

• Retirement income may not last (Longevity) 
• Retirement income may not be sufficient (Inflation) 

3. CPF Life

• Limited retirement income 
• Retirement income will lose its purchasing power due to inflation 
• Is designed to provide basic, steady stream of income
• It is not adjusted for inflation
• Is only 1 part of Singaporean provision for old age 

CPF Life In Summary

• CPF Life is designed to provide only for basic income needs for life
• Flexibility to suit individual needs with 12 options.
• CPF members can only start planning at age 55
• Payout amount is fixed for life
• The Minimum Sum is capped at prevailing CPF requirements (i.e. Up to S$134,00 in 2013)
• Once decided on the payout at age 55, annuitants are not able to make amendments.
• Female annuitants get lower payout than their male counterparts

What is important to note is that our CPF can only be part of or retirement plans - maybe only constitute 20% of our retirement income.

The majority of retirees in Sinagapore were heavily dependant on their children for support in their retirement years. 

Retirement Planning & Solutions

Which plans you need to take now very much depends on your current lifestage. See our Life Stage Financial Planning model for detalis.

If you are at the young, married with children stage - early 20s to early 40s - then you need to build up your wealth = > Wealth Accumulation stage.

Recommended asset accumulation plans :

1. Limited payment whole life plans that can be converted to annuity after age 60 - click here to see sample = > WL Annuity 
2. Endowment plans 
3. Single premuim plans 
4. Regular premuim investment-linked plan or unit trust

Basically , you will require a combination of the above to achieve your retirement goals. Let us help you plan for your retirement and source for the best products.