How to Plan So You Can Retire in Style

What simple steps can you take today to help secure your dream future? And what do you do during your retirement to turn it into a true adventure?

Every generation’s taste changes — you only have to look at how pop music transforms each decade as proof. But changing attitudes go deeper than that: for your grandparent’s generation, a dream retirement might have involved nothing more than a quiet life with costs covered, and some money left over.

Nowadays, our expectations have changed. Longer lifespans and economic growth mean that you won’t be laughed at if your dream is to go skiing in your 70s. Even so, 55 percent of Singaporeans polled in a longevity survey are not financially ready to live to 100, an age that is a distinct possibility1.

The question is, how do you plan for your ideal retirement in Singapore and make it a reality, without compromise?

Start by Daydreaming
The first step is an easy one. You can’t plan for your dream retirement if you don’t know what you have in mind. Take time to picture yourself in your 60s and 70s — what comes to mind? How big a family do you want? What does your future home look like?

Once you know what you want, you can start to put numbers against how to achieve your dreams. Use a to get a sense of the basic retirement sum you will need to hit.

Maximise Income…
The best way to maximise your savings is to start early, so you can give time for compound interest (which is interest earned on top of interest) to do its work. Imagine investing S$10,000 at the age of 22. Earning five percent on that yearly gives you S$73,584 when you’re 62. Compare that to if you start investing the same amount, at the same five percent rate, aged 42 — you would end up with only S$27,1262.

Tip: select the right savings plan, and you can secure 10.88 percent per annum return on your one month SGD Fixed Deposits (plus receive up to S$1,200 in vouchers). Learn more .

…and Minimise Outgoing Costs
Wasted expenses can add up over the years. Maybe you have a gym membership (which you rarely use) that costs S$80 per month. That’s nearly S$1,000 drained from your account after just a year. Take the time to list all your expenses and cast a critical eye over them. This way, you can cut out whatever is not adding value to your life.

Get a “Rhythmic” Retirement Investment Plan
The best songs have a mix of instruments and rhythms — fast sections and slow build-ups. Your investments should follow a similarly diverse style. Spread your risk over multiple forms of investment, from low-risk types that grow slowly and surely to, if you are comfortable with it, more high-risk high-return asset classes.

If you haven’t ventured into investment before, it can be invaluable to talk to a financial advisor in Singapore. with our team, who will be happy to answer your questions and start you on your path.

Make Your Future Fun
Now that you have built up the nest egg of your dreams, how can you take your retirement to the next level? Consider the following to retire in style:

Add Randomness Into the Mix: For some, their working life might be a time to play it safe. But when you retire, you can add some spice to your life by doing things you always wanted to do, but never did. A common dream, for example, is to travel. Rather than quietly discuss retirement travel ideas with your husband or wife, why not gamify it a bit? Write down three of your individual top countries to visit and pop them in a hat. Then stick your hand in — and see what comes out.

Keep Challenging Your Brain: Some people may want a retirement that involves nothing more strenuous than a shopping trip. But for others, it’s a time to learn something they never had time for, from a new language to a handy skill like baking. It’s not all about bragging about lifelong learning to your friends, either. Among many other benefits, research has shown that continued learning as a senior can delay the onset of some Alzheimer’s symptoms3.

Treat Yourself, Big-time: Decide now on the luxuries to enjoy in your golden years. Every saving you make and every challenge you overcome now will be worth it when you indulge in that once-in-a-lifetime dream. Will it be to visit a Michelin-starred restaurant on every continent? Collect antique jewellery? Or buy that sports car you have always dreamed of owning? The choice is yours.

This article is brought to you by UOB in partnership with Prudential. It was first published on Prudential Singapore’s blog Life matters.