Currently, retirees in Singapore expect to need just over $3,300 a month. If you have not saved or don’t have enough in investments to pay out this amount, you can certainly find ways to economize.
However, economizing once retired can be tricky.
You can move away from Singapore to find cheaper housing but will pay more for security, doctor’s offices, and entertainment. Meeting your loved ones and friends will become much more challenging if you live far from Singapore.
Plan Your Life Around Your Favorite Activities
If your future plans include spending time daily with family and caring for grandchildren, investing in housing that offers easy access to your clan will be much more convenient, even if it costs a bit more. Our greatest wealth is time.
Put Off Your Withdrawals
You can set up your Singapore investment funding in an account that allows withdrawals starting at age 55. While this wealth may be tempting, focus on your future and let these dollars grow. Unless your employer requires you to retire, try to keep working into your 60s so these investments can compound.
“Working longer may actually lead to a longer, healthier life.”
Working past 55 offers several benefits. It
- keeps you engaged with like-minded adults
- gives you purpose
- and a reason to focus keeps you active
While some have yearned to leave the working world to focus on family, many others face loneliness and isolation at the end of their working days. This isolation is hard on your brain and your heart.
Working longer may actually lead to a longer, healthier life.
Invest in assets
Investing can be a daunting prospect for beginners, with an enormous variety of possible assets to add to a portfolio. Choose the one that is right for you at the current moment.
Stocks are very easy to start at the initial stage. However, as Singaporeans, we are at a disadvantage if we continue to invest in foreign stocks such as the ones based overseas.
Singaporeans should take advantage of the tax breaks and opportunities we have against our foreign investors.
Investing and buying properties provide such advantages.
Work with a trusted advisor
It may be tempting to leave your money in the bank, but low-interest rates that your money is losing purchasing power as you age and as inflation goes up.
Make sure that your advisor understands any anxiety you have over investing your retirement dollars so you can fully understand where your money is going and what the risks are.
There are many facets to this planning, including timing your withdrawals, getting the right insurance, and fully understanding your risk. The right planner can help you with all of these concerns.