Delaying retirement pays off – A new study finds that govt measures have boosted the number of older folk staying in the workforce. This productivity is important as Singapore becomes a super-aged society.
Moves by the Government to raise the retirement age and increase employment of older folk have had a positive, if uneven, impact – but are much needed, as Singapore is on the way to becoming a super-aged society by 2030.
However – For those who have left the world of employment, the focus now shifts to growing and protecting their retirement income. Money Mind reports.
As people progress through different stages of their lives, their investment requirements change. This means that they have to relook their investment priorities.
“I’ve come across many old people that take on young people’s risk. The truth is, you can’t, at that age. In your 50s, 60s and 70s, your ability to bounce back from catastrophic financial events falls tremendously”Said Mr Loo Cheng Chuan, founder of the 1M65 Movement, a CPF investment strategy to help Singapore couples become millionaires at retirement, in an article published in CNA
There are three CPF Life plans: Basic, Standard and Escalating.
The Escalating Plan provides monthly payouts that increase by 2 per cent every year for life, and would suit those who are concerned about rising prices in the future.
The Standard Plan provides level monthly payouts, and the Basic Plan gives lower monthly payouts but leaves behind a larger legacy for loved ones.
CPF Life will take care of basic needs, but those looking for more than sustenance will have to secure additional income from other investments, said experts.
Missed our news yesterday? Read here at https://www.nextlifebook.com/estate-planning/the-pandemic-forced-3-million-of-americas-baby-boomers-into-unexpected-retirement/
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