How to Plan and Save for Retirement in Singapore (2017 update)

Posted by admin
on September 11, 2017

How to Plan and Save for Retirement in Singapore 

No matter how far you run away from it, you can’t cheat age forever. You will grow older and become a remarkable part of society. In every part of the world, these elderly members of society do not work in corporate or governmental organizations. Even business owners don’t work until death. They plan to retire and leave the stage for the younger members of society. While you may not have absolute control over when you will retire, you can still control the kind of life you will enjoy after retirement. 

Statistics have shown that even the richest of Singaporeans fear retirement. Irrespective of the high cost of living and the challenges attached to retirement, you can still take control by planning beforehand. You need to have a retirement plan.  

Before thinking about having a retirement plan, you need to ask yourself important questions. Questions like how much do I need to save monthly for a very comfortable retirement in Singapore? How possible is this goal? What do I need to put in place to meet my retirement goals? There are many technological innovations these days that can help you check exactly how much is required for a comfortable retirement in Singapore.  

retirement
retirement

Retirement in Singapore

In Singapore, the life expectancy has rapidly increased over the last few years. This is good news as it means that the death rate has significantly reduced. The average age for retirement is the age of 65. Unfortunately, this also means that you have a longer period of inactivity and social exclusion to consider. Also, you will not have the regular flow of income you get from your job. This can be a bit of a worry because that can raise questions like where to begin and exactly how much would be needed. The quality of your life will reduce dramatically since you will no longer be employed. With the right retirement plan, this doesn’t have to be the case.  

 

The first approach is usually focused on saving over the years. A certain percentage of monthly income should be set aside. For instance, if at the age of 30, you start to set aside 25% of your income as it is received it, by the time you get to your retirement age, you must have accumulated enough money for retirement. In fact, you can go as far as saving up four times what your annual income should be.  

The increase in life expectancy means that the percentage you save may not be enough to keep you going till death. The percentage you save can vary depending on your current income and expenditure. However, it should never be less than 25%. 

Alternatives

There is, of course, an alternative approach. It is considered as a more technical and reasonable approach. For instance, if you are below 40, the target would be to accumulate as much saving as you can get annually by the time you turn 40. By the time you are 50 years old, your savings would be almost or, in some cases, more than three times your yearly income. With this approach, when you retire, you would have accumulated up to seven times what your annual revenue is. This method is so much better than the previous one. 

Most people depend solely on financial analysts to help them out with retirement decisions, but they do not seek them out early. There are various approaches offered by analysts during a consultation. It is, however, important to note that visiting a financial advisor early enough is a good place to start. You can’t start planning a future when you are already in that future.  

 Why Plan Your Retirement?

Smart retirement planning is necessary when you want to maintain your standard of living even after work. It would help you determine exactly how much is needed and what adjustments are required. 

Most people in Singapore do not adequately equip themselves for retirement early enough. Inadequate planning increases the possibility of facing the issue of insufficient funds after the first 12 years of retirement. So, the earlier you start saving for when you retire, the more secure you would be when the time comes.  

You need to make a plan that will cover every single need you have. If you wish to enjoy your life during the good old golden years and not work or look for investment plans, it is best to start planning early and adequately. 

 

Planning your Retirement Successfully in Singapore    

1. Examine your Expenditure 

Another important step to take is to calculate exactly how much you need as well as what you spend. You not only need to make plans, but you also need to make necessary calculations. You must calculate the number of years you would spend working before retirement. Several applications can help you find out exactly how much you need, how much you spend and how much you need to meet up with your plan. 

 

There is also an application that can help you make smart investment choices. You can consider signing up on these sites that help teach you how to invest any amount of money and get adequate returns annually until your retirement age. It can also secure you after retirement in case you start running short of cash.  

 

   2. Roundup Funds 

The first step is to calculate your income. This is a crucial step. Calculating your income would help the rest to fall in neatly. You can calculate your income on your own before seeking out a financial advisor. There are websites dedicated to helping you round up your income. 

 

   3. Consider Different Investment Options 

There are many Investments options available. Investing wisely will not just protect your money: it will also increase it. When making investments choices in Singapore, it is critical to be cautious. It is nice to have the knowledge of the risks involved as well as the benefits. Talk to a financial advisor before you make any choice.  

  4. Compare Employment Opportunities 

Look for other employment opportunities and compare them to your present job. If you’re not earning enough to save for a comfortable retirement, consider changing your job. Also, look for ways to make passive income on and off the web.  

It can be difficult to maintain a lifestyle after retirement. This is because you need to look after yourself and people you are responsible for with no monthly salary. Saving adequately is the first and most important way to protect your future. Not planning for retirement will make things difficult for you. Your standard of living will depreciate and so will your health.  

Do not procrastinate when you are trying to plan for retirement. It is never too early to start. The earlier you start, the better. Save, invest, watch how you spend, and talk to an experienced financial advisor. Don’t wait for the future. Plan your retirement today.  

 


Quick Credit Pte Ltd

Quick Credit Pte Ltd is the best money lender you will be able to find in Singapore. If you currently need help in anyway, do not be shy and let us know. Anything cash related, we will be able to help you. Our well train loan consultants will be able to come up with a good loan package to help you clear off all your outstanding bills or debts. In doing so, you will help you keep better track of all your expenses and money. We have been a licensed money lender since 2002.

We have the skills, knowledge and people to assist you through the entire loan process while providing you with excellent advice.

In addition, we have one of the highest positive moneylender reviews among money lenders in Singapore. Furthermore, Quick Credit is also one of the few moneylender open on Sunday!

Interested in knowing more about how you can get a loan from us? You can drop us an email at enquiry@quickcredit.com.sg. Our manager will get back to you as soon as possible. Or you can drop us a message here and our manager will get back to you soon.

Alternatively you can call us at +65 6899 6188. Or visit our office at 2 Jurong East Street 21 #04-01A/B IMM Building Singapore 609601. The nearest MRT station to us will be Jurong East Station.

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