Retirement, the one you think you know about, is not really about money
- CPF Board explains it simply as 3 CPF Life plans, each aiming to give you a modest amount of money enough for a basic (ie crappy) standard of living with the option to cater for inheritance or longevity. In 2019, they said $1379 is enough for most Singaporeans aged 65 and older. If you are the type who think government is always right, i would say good luck.
- The FIRE movement (Financial independence, retire early) explains it as saving, no, scrounging enough money such that you are able to live off a modest amount of investments for very long. We now all know that COVID put out that FIRE. FIRE is not sustainable. Can we expect our life to have minimal liabilities moving forward? A growing family willing to live in austerity too?
- Another similar financial trend says that by accumulating a certain amount of money, you can withdraw 4-5% of it annually as your living expenses and it would last about 30 years. This concept is more sound, but it also advises you to start withdrawing it at 65. The more your living expenses are, the harder it is to accumulate that amount of money.
- If you are thinking of leaving your job, ask yourself WHY. Are you quitting to leave a nasty boss you didn’t dare to stand up to? Or are you quitting to find a better employment set up that works for BOTH you and your employer.
- If you are thinking of going all-in into a crypto investment your friend introduced to you, ask yourself WHY. Are you investing with knowledge of the risk to get high return? Or are you just impatient to get rich.
- If you are telling yourself you don’t need to spend unnecessary money on insurance, ask yourself WHY. Do you really think you will be healthy forever? Or you are just too complacent to admit that you cannot foresee the future.
According to the Cambridge Dictionary, retirement is “the point at which someone stops working, esp. because of having reached a particular age or because of ill health, or the period in someone’s life after the person has stopped working”.
- You are considering to leave a job because it doesn’t pay you well enough to stop juggling driving grab and going to office.
- You left a job because you found something that promotes flexible hours, remote working so that you can care for your child even though it pays lesser.
- You invested abit of money in crypto, because it is something you can gain knowledge about with potential upside, and understand your risk tolerance better.
- You bought medical health insurance as a start because you know health fails with age, with the consideration to buy more coverage in the future if your family expands.
- You agreed to speak to a representative from an independent FA, at the risk of angering your friend who insures your whole family because you want to find out if your current financial situation can be improved.
- You foresee yourself working until 65 or beyond, because you have enough financial resources to downgrade if needed while still putting your time in something meaningful, staving off dementia and earning a humble allowance
Talk to someone you think who can help you find out what your own definition of retirement may be.
#finallypostedthis
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Published By:
Shannon Choo
In my previous corporate career, I was a Client account manager and led an operations team. In 2019, I joined a top Insurer to challenge myself and learn the ropes at roadshows. Eventually I embarked on a full-fledged career in Financial Planning by joining an Independent Financial Advisory, which allows me to fully act in my client’s best interests with the full suite of financial instruments at my disposal.
I hold professional certifications in commercial and personal General Insurance, all levels of health and life insurance, investment instruments such as Mutual funds, and Islamic estate planning and Will Writing.
Today, my clients come from all walks of life. Senior corporate executives seeking early retirement, young adults buying their first policies for their families, and Human Resource managers looking to insure their employees.
I provide fee-based services to advise on all aspects of financial planning, as well as manage long-term investment and insurance portfolios for clients.
CONTACT US
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