- Retire comfortably with lump sum or stream of income payouts
- Insurance cost refunded for unutilised protection benefit
Retirement Planning in Singapore
Start building the future you want. Learn how to plan for retirement, estimate your future needs and take steps towards a more financially secure future.
Plan early, retire with ease
Planning ahead can make a significant difference. However, studies show that many Singaporeans under 40 still tend to “brush aside their plans for retirement1,” with most only starting to think about retirement at age 38. Of these, 2 in 5 are confident of saving enough1.
Data reference: Manulife's survey on Singaporean retirement planning 2023
Retirement planning at different life stages
Your retirement priorities change as your income, responsibilities and financial goals evolve. Knowing what to focus on at each stage helps you create an effective retirement plan.
20s and 30s: Start early and build strong foundations
- Start saving and investing early: The earlier you begin planning for retirement, the more time your savings have to potentially grow through compounding.
- Build strong financial foundations: Create regular savings habits, maintain an emergency fund and ensure you have suitable insurance before investing for long-term goals.
- Define your retirement goals: Consider your desired retirement lifestyle and estimate how much you may need to save over time.
40s: Balance wealth building with financial commitments
- Review your retirement progress: As financial commitments such as housing and family expenses increase, continue setting aside funds for retirement.
- Diversify your retirement portfolio: Consider a mix of assets based on your goals, investment horizon and risk tolerance.
- Review your protection needs: Ensure your insurance coverage continues to support your family and retirement plans as your circumstances evolve.
50s: Strengthen your retirement readiness
- Assess your retirement income needs: Review whether your savings and investments are on track to support your desired retirement lifestyle.
- Adjust your investment approach: As retirement approaches, consider balancing growth opportunities with investments that may offer greater stability.
- Plan for future income sources: Consider how your savings, investments, CPF savings and retirement income solutions can work together.
Approaching retirement: Focus on income and long-term financial security
- Create sustainable income streams: Plan how you will generate income after leaving the workforce to support your retirement lifestyle.
- Review your retirement strategy: Make sure your plan accounts for longer life expectancy, healthcare needs, inflation and unexpected expenses.
- Continue reviewing your finances: Retirement financial planning does not end when you retire. Regularly review your income, investments and financial goals to ensure they continue to meet your changing needs.
Content references:
https://www.manulife.com/sg/insurance/whats-new/insights/how-to-invest-your-savings-at-every-age
https://www.manulife.com/sg/en/insights/retirement-planning-guide-for-young-adults.html
https://www.manulife.com/sg/en/insights/6-factors-to-think-about-when-building-your-retirement-fund.html
Explore retirement planning solutions
- Guaranteed Monthly Income2 for life, or over your choice
- Additional3 payouts for retrenchment and loss of Independence4
Frequently asked questions
The amount you should save depends on your retirement goals, lifestyle, financial situation and timeline. A simple starting point is to estimate your retirement income needs and work backward to find your monthly savings target. You can explore Manulife’s retirement planning solutions to find a solution that meets your needs.
Inflation reduces the purchasing power of your savings over time, so you may need more funds to maintain the same lifestyle in retirement. Your retirement plan should factor in inflation to ensure your savings support future expenses.
Starting later gives your savings less time to grow, which may require you to save more or adjust your retirement goals. Creating a plan as soon as possible can help you work towards building sufficient retirement funds.
Consider building a retirement income strategy that combines savings, investments, CPF and suitable income solutions. Regularly reviewing your income needs and withdrawal approach can help your funds last longer.
CPF can play an important role in funding your retirement. However, whether it will be sufficient depends on factors such as your desired lifestyle, expected expenses and other sources of income. When planning for retirement, consider how your CPF savings, personal savings and investments can work together to support your long-term financial needs.
Review your retirement plan regularly, especially after major life or financial changes. Regular reviews help you adjust your savings, investments and strategy to stay on track.
1. https://www.straitstimes.com/business/invest/8-myths-about-retirement
2. The Guaranteed Monthly Income (GMI), less any policy debt, will start one month after the policy anniversary, immediately after the life insured reaches the selected retirement age and will continue until the end of his/her selected income payout period.
3. Not applicable to policies with a single premium and 5 years premium payment term.
4. If the life insured is not able to perform any 2 out of 6 Activities of Daily Living, the Loss of Independence Income Benefit payable is equivalent to 50% of the GMI, capped at a maximum of S$2,000 per month per policy. If the life insured is not able to perform at least 3 out of 6 Activities of Daily Living or is diagnosed with Irreversible Loss of Speech, Deafness (Irreversible Loss of Hearing) or Major Head Trauma, the Loss of Independence Income Benefit payable is equivalent to 100% of the GMI, capped at a maximum of S$4,000 per month per policy.
5. Please refer to the Product Summary for more details on the Loss of Independence conditions.
The information on this page is for general informational purposes only and does not constitute financial advice.
We recommend that you seek advice from a Manulife Financial Consultant or our Appointed Distributors before making a commitment to purchase a policy.
CPF retirement savings are intended to support income needs during retirement. When considering retirement planning solutions, customers should assess their CPF savings, personal savings, investments and retirement income needs holistically. Information relating to CPF is provided for general informational purposes only and may be subject to change. Please refer to the CPF Board website for the latest information.