Tag Archives: retirement

IF COST OF BEING S’POREAN GOES UNCHECKED, SG MAY LOSE TO MALAYSIA

I was in Langkawi from 12 to 15 February and spoke to about 10 people about life in general. In particular, I talked to a taxi driver who had worked in Singapore for about six years before returning to Langkawi. He said although he earns much less now as a taxi driver in Langkawi - about RM3,500 a month - he is much happier.

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8 TIPS ON HOW TO RETIRE BY 55 & ENJOY DECENT LIFE IN S’PORE

Many of us worked very hard all our lives. From Primary school all the way to the workforce, we worked hard. So it is natural that many of us want to retire at 55, the time when we can collect our CPF. How can we retire at 55? Here is the way. This shows everyone with a decent salary can save a lot but most people will overspend. They want a car, they want to employ a maid, they want expensive holidays, they want luxury bags, they gamble, they smoke, they drink, they party, etc. So it is not money not enough. Actually it is SPENDING TOO MUCH.

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USING HDB LEASE BUYBACK SCHEME TO RETIRE IS A DELUSION?

Our public housing is one of the most expensive public housing in the world – measured by price to income ratio. A lot of people use a lot of their CPF for housing that may leave them with not very much CPF for retirement. “experts have warned that house prices are likely to be volatile” (In Singapore, house prices took about 14 years to recover from 1996 to 2010). So, is the HDB Lease Buyback scheme a possible solution for most retirees, when they need to retire?

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SAF OFFICERS CAN CHOOSE RETIREMENT INVESTMENT RETURNS, WHY CPF MEMBERS CANNOT?

The AGO report certainly shone a light on something very interesting in my view. This is the unauthorised investment of circa $50m in US Real Estate Investment Trust and Exchange Traded Fund. The interesting bit is not the unauthorised investment which is not uncommon in asset management (usually because authorisation is slow in coming) but the Saver Premium Fund, a retirement plan for SAF Officers and Warrant Officers, from which the investments were made. It clearly show our military officers are given the choice and the returns that are denied to CPF members.

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OCBC RM SOLD US RISKY INVESTMENT PRODUCT, RUINED OUR RETIREMENT

Everything went well for the first 3 months until just before the maturity date, when she informed us that our investment had incurred a loss and advised us to hold it until it recovers. We had no access to any stock exchange or share price information, until the 7th month when we received a wealth report from the bank indicating, to our horror, that our investment value had dropped by more than half, and is now worth almost nothing.

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HSBC SURVEY: 90% OF S’POREANS WILL STRUGGLE WITH RETIREMENT

Based on the latest HSBC Future of Retirement report, Singapore is predicted to be one of the toughest countries to retire in in the world due to financial pressures. In the report, three in one workers aged 45 or above think they will not be able to retire fully in Singapore. This is twice the global average of 18% of respondents who feel the same way.

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S’POREANS MONEY NO ENOUGH FOR RETIREMENT, LOW CPF INTEREST RATES TO BLAME?

I think there seems to be something not quite right because one would need an annualised return of about 7.9 per cent in order for $300 monthly to accumulate to $1 million from age 25’to 65. If its from age 35, the returns would have to be even higher at about 11.8 per cent. How realistic is it to expect a return of 11.8 or 7.9 per cent? Two-thirds of retirees – 66 per cent – said they wished they had started planning for retirement earlier, with 65 per cent indicating that they do not expect their savings to last throughout retirement” – the dominant factor why Singaporeans have so little when they retire, is arguably the low CPF interest rates.

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FINANCIAL EXPERT: CPF PAYOUTS GROSSLY INSUFFICIENT FOR RETIREMENT

I refer to the article ”CPF payouts ‘fall short for higher-income earners’” (Sunday Times, Dec 6). It states that ”Men at the 30th income percentile, however, could achieve a gross replacement rate of 71.3 per cent by annuitising the full amounts in their CPF accounts, Ms Miksa noted. As only an estimated 1 in 6 Singaporeans at age 55 were able to meet the full CPF Minimum Sum (currently $161,000) without pledging property – the lower income may be even more financially stretched in retirement.

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