You're in your 30s or 40s, with a stable job, a lovely home and beautiful children who light your day with their smiles. Retirement is somewhere on the horizon and you are likely to have some plans for it. But the big question is, have you figured out the nuts and bolts of it? What exactly do you want in your retirement, when do you want to retire and how do you plan to afford it? Perhaps you can take this quiz to see where you stand and where you can go from here.
Your Retirement Dream
Broad Considerations for Retirement
If your answer for the very first question is ‘no’, or if you haven’t quite thought about any of these questions, retirement is probably not your priority right now. Which is perfectly normal, especially if you’re a young parent, as chances are, you’re completely caught up with doing your very best for your children. And good on you for that!
But we’re here to remind you that you really should start thinking about your retirement. Planning for your retirement is every bit as important as all the other things while you are in the midst of hustling for your family. In fact, one of the best things you can do for your family would be to ensure that you have your retirement covered. There are several reasons for this.
Imagine these scenarios. You did not plan for your retirement and this resulted in you depending on your children to support you during retirement. Did you know that a study in 2020 shows that close to half of Singaporeans (46%) depend on their family to care for them in retirement and about 48% forecasted that they will not have enough money saved to sustain the lifestyle that they want in retirement¹? Imagine turning 65 and being in this situation. Would you regret it then?
Apart from just retiring, you also want to consider the quality of life you wish to enjoy upon retirement. Retiring and spending your time at home is one thing. Retiring and fully embracing life and doing all the things that you love is another thing altogether. A 2021 study suggests that a single elderly person without any chronic illness needs close to $1,500 a month to meet their basic needs² . You can multiply this amount by two for a couple. Given that this figure is for basic needs, you probably need more if you’d like to travel and live the retirement you dreamed of. Using this as a rough guide, do you see yourself retirement ready when the time comes?
Turns out, according to a survey³ done by Income, 85% of parents wish to retire before they turn 63 but only 2 in 5 parents are confident that they have sufficient savings to retire when they want. If you fall in this category, it’s time to take action.
Remember, you will spend many years of your life working hard. Retirement is the time to seize life for all it has and do more of what you love. Some people think it’s not possible to do so as they cannot afford such indulgences upon retiring. But that’s not true. All it takes is proper planning and the sooner you start, the more you can get out of your retirement, and the sooner you can retire!
Steps to Kickstart Your Retirement Planning
The good news is, you still have time to kickstart your retirement planning. For a start, you can make a list of specific financial commitments you have. Here are some considerations:
- Do you have a house/car or any big debts or financial commitments to clear before retirement?
- Do you have a plan or timeline for it?
- Do you have children or elderly parents that you are supporting?
- Do you have savings for important things such as your children’s university fees, wedding expenses and so on?
- Have you envisioned what your retired life will look like?
- Do you plan to travel after retirement?
- Do you plan to own a car after retirement?
- Do you have insurance and contingency plans in place for critical illness and disability?
Once you have identified these things, you will be able to have a better gauge of how much you need to save and your monthly expenses when you retire. Once you’ve gotten there, you can start saving to ensure you have a steady retirement cash flow.
Gro Retire Flex Pro is a flexible insurance savings plan by Income that allows you to retire when you want by providing a steady stream of cash payouts when you retire. It paves the way for you to live your desired retirement lifestyle when the time comes. Here are some of the benefits that you can enjoy with this plan:
- Receive a steady stream of monthly cash payouts during your payout period – which include a monthly cash benefit and a non-guaranteed cash bonus so you can enjoy the things you want during your retirement.
- Option to accumulate with interest at a rate of up to 3.00% p.a.⁴ or spend your cash payouts as you wish.
- Enjoy flexibility to choose how long you want to pay the premiums, when you want to retire, the amount you desire and the duration of the payouts.
In addition, you will also receive coverage against death and terminal illness, and extra protection⁵ against accidental death and disability. You can also have a peace of mind with the Retrenchment Benefit⁵ that will cover you during uncertain times. Head to the Income website to find out more and calculate your retirement amount based on your needs.
Mums and Dads, as you can see, making your dream retirement into a reality is really not that hard. The most important thing is to start taking action now. If you have outstanding debts or if you need to make adjustments to your lifestyle, then get started on it. Only then will you be able to start working out your retirement cash flow. And however minimal the amount is, consider to start with an insurance savings plan.
Get started on your retirement savings journey today!
Remember, dreams don’t work unless you do. Do what it takes today to make your retirement dreams come true tomorrow. Enjoy the retirement that you deserve!
Policy Ts&Cs apply.
- https://www.hcamag.com/asia/news/general/most-singaporeans-unprepared-for-retirement/223215
- https://blog.moneysmart.sg/invest/retirement-savings/
- Milieu Insight, poll of n=200 comprising 40- to 49-year-old parents with monthly household income between SGD $7,000 and $12,000.
- Ts&Cs apply. Interest rate is not guaranteed.
- The Accidental Death Benefit, Disability Care Benefit and Retrenchment Benefit are only applicable for regular premium policies.
All opinions expressed in this article are solely those of The Asian Parent (“TAP”) and do not reflect the opinion of Income Insurance Limited (“Income”). TAP is solely responsible for any opinion and the accuracy and completeness of any information and intellectual property used in this article. The information contained in this article pertaining to any insurance product or plan is provided and meant for general information only and does not constitute an offer, recommendation, solicitation or advice by Income or TAP to buy or sell any product(s), plan(s) or investment product(s). It is not and should not be relied on as financial advice and has no regard for any person’s investment and financial needs. If you are unsure whether this product or plan is suitable for you, you may seek personalised financial advice from a qualified insurance advisor. Otherwise, you may end up buying a product or plan that does not meet your expectations or needs. As a result, you may not be able to afford the premiums or get the insurance protection you want. Precise terms, conditions and exclusions of the product are found in the policy contract.
For customised advice to suit your specific needs, consult an Income insurance advisor.
Protected up to specified limits by SDIC (applicable for Income products that fall under the Policy Owners’ Protection Scheme).
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Information is correct as at 25 October 2022