Thinking of retiring now? Here are 5 things to consider
Published on
12 Dec 2021
Published by
The Straits Times
1. Financial situation
One of the first things you should ask yourself is whether you are financially ready for retirement based on your lifestyle and commitments.
Calculate your monthly expenses so you know how much you will need when you are no longer drawing a salary.
Part of your retirement income should be set aside to fund hospitalisation plans to ensure continued coverage in your golden years, says Prudential Singapore chief customer officer Goh Theng Kiat.
"It is also important to note that premiums generally increase with age, so we need to account for this when we do retirement planning," he adds.
For some people, retiring is not an option right now as there are still mortgages to service, school fees to cover and bills to pay.
Life coach Eugene Seah says this group could aim for job fulfilment instead of thinking about retirement.
"Find something to do that you don't mind doing for the next 10 years."
If you are feeling burned out, he suggests speaking with a therapist, rather than quitting your job in haste.
2. Working arrangements
If you can work from home comfortably, there should be no harm continuing to do so for a few years past your planned retirement age to save up more, says Mr Seah.
You might even be able to tap the extra time saved to start earning a second stream of income through e-commerce or trading stocks, he says.
You can re-evaluate your situation when you are asked to return to the office if you are uncomfortable travelling to work during the pandemic.
3. Supplementing your income
Most retired Singaporeans will likely rely on either CPF Life or the CPF Retirement Sum Scheme for a monthly income, and some may also consider other ways to supplement this, notes Great Eastern financial representative Louis Chin.
Generally, if you are nearing retirement age or already retired and have a lower risk appetite and a shorter time horizon of less than five years, it is advisable to invest in products or asset classes that have moderate yield with low to no risk, are short term with flexibility to withdraw, and capital guaranteed if possible, he says.
Mr Chin warns that financial scams are on the rise, so seek advice only from credible sources and do not embark on "opportunities" which promise returns too good to be true within a short time span.
4. Include family in the planning process
It takes time and commitment when planning for retirement and it involves the family, not just the person who is retiring, says Workforce Singapore senior career coach Tan Chee Keong.
He recommends starting the conversation as early as possible:
"This is so that there can be a common understanding among all who may be affected by the decision, and family members can have the opportunity to appreciate the desires of the individual who is now ready to move to the next stage of life."
5. Retirement lifestyle
If you stop working completely or switch to a part-time role, you will have a lot more time in your hands.
Mr Tan recommends asking yourself whether you have found activities to meaningfully occupy yourself with after you retire.
Would you be willing to try new hobbies or learn new skills?
Even though doing too much can be stressful, doing too little can also have a negative impact on your well-being.
Source: The Straits Times © Singapore Press Holdings Limited. Reproduced with permission.
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