CPF Retirement Planning Roadshows

According to a HSBC survey conducted in 2013, more than 50% Singaporeans felt that they are not planning adequately for their retirement. The study also revealed that poor health and not having enough money to spend in their later stage of lives are among Singaporeans’ greatest fears. The results of the survey are not surprising, given our aging population and high cost of living. If you are not careful with your personal finances in your twenties or thirties, chances are, you might not have a positive retirement lifestyle.

To prepare for retirement, the first thing we must ask ourselves is how much is needed in order for you to feel comfortable in retirement. The amount of money is subjective and varies across individuals but the rule of thumb is that the retirement fund should include your dependents’ needs, traveling, medical and other unforeseen expenses.

Once you establish your desired retirement nest egg, develop the financial roadmap to achieve this goal. For example if you need $2 million to retire, work out the monthly or annual savings you need to set aside. Besides the cash components, acquire income generating assets and passive income investments to support your retirement fund.

A common mistake made by Singaporeans is that we often fail to future-proof our financial planning. In their pursuit of wealth, many Singaporeans overlook the importance of protecting their abilities to generate income when they are young and healthy. Thus, it is not surprising that many wealth builders ignore the significant impact that life insurance coverage has in their wealth building journeys. It should also be emphasized that having adequate insurance coverage is one thing, it is also important to purchase the right insurance. Selecting the wrong insurance policy can potentially affect your financial planning and derail your retirement goals.

The second mistake is that we tend to procrastinate retirement planning and focus on overcoming short-term obstacles. Thus, sometimes it is important to “time-out” from our daily challenges and pause to reflect our long term financial needs.

For example, while your income may be adequate to finance that new property for the next 10 years, this may not be true when you reach 50 or 60 years old. Therefore, it might not be prudent to stretch your mortgage loan to 30 years. Also, besides property, cash and CPF savings, always make it a point to acquire quality assets and hold them for the long term. Such assets include blue chip stocks, bonds and gold bullion.

Against this backdrop, CPF Board is organising a series of retirement planning roadshows from August to November, in a bid to help Singaporeans aged 40 – 54 prepare financially for their gold years ahead. Below is a listing of the first two events:

[ROADSHOW No. 1] Planning for your Retirement
[DATE] 28 – 30 August 2015
[TIME] 11.00am – 6.00pm
[VENUE] Bedok Mall
[PRICE] Admission is free
[WEBSITE] Visit www.cpf-bigrchat.sg to find out more
[DESCRIPTION/ LISTING] Unsure of how to plan for your retirement? Join us at this roadshow to pick up insightful tips. On 29 Aug, hear from celebrity and entrepreneur Irene Ang and financial expert Christopher Tan, CEO of a financial advisory firm as they discuss retirement planning. Win prizes at various game booths when you test your financial knowledge too!

[ROADSHOW No. 2] Planning for your Retirement
[DATE] 13 September 2015
[TIME] 11.00am – 6.00pm
[VENUE] Toa Payoh HDB Hub
[PRICE] Admission is free
[WEBSITE] Visit www.cpf-bigrchat.sg to find out more

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