Since 1 in 3 Singaporeans will likely live past 90 years, one of the biggest challenge is to make sure you have the financial means to have a reasonable quality of life. In reality, the biggest challenge that most older persons worry most is outliving their savings. In simple terms, you can protect against the risk by using an insurance product known as life annuity. Typically, you hand over a lump sum to the insurance company who then agrees to pay you a regular stream of payment (typically monthly) for the rest of your life.
The good news – living to 100 years old is within the reach of many of us in Singapore retiring today. Singaporeans will live longer than many nations in the developed world – a study in 2016 shows that HALE(Healthy Life Expectancy) at birth ranks Singapore #1 in the world. Singapore must have done something right because HALE has improved a whopping 4.9 years from 2000 to 2016 – unmatched in any developed world.