Tag: Retirement savings

Retirees Unhappy With Declining FD Rates during Covid. What to do?

One thing that Covid has impacted severely is the global economy and interest rates. In Singapore, our fixed deposit rates are closely linked to the interest rates in the United States. We can expect the interest rates to hover just slightly above zero percent for the short and medium term. For seniors depending on fixed deposit interest to make ends meet, this is bad news. Without taking in more risk, what should seniors do?

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Even if You Have CPF Life at 65, You May Need an Additional $215K to Retire.

How much you need at 65 to retire depends on many factors and is different for everyone. A good starting point in Singapore is to look at someone at 65 who will be receiving CPF Life Full Retirement Scheme payout of about $1350 per month. Working on the assumption that you have your HDB unit paid off and are not carrying any debt, do not own a car, in good health and does not have any significant balances in other CPF accounts – how much do you need to set aside to retire reasonable comfortably in Singapore? Let’s make the assumption that you will need enough money to take you to 90 years-old or 25-years past your retirement at 65. Statistically, you may live longer than that, and that is why we also factored in a contingency or emergency fund as well.

Continue reading “Even if You Have CPF Life at 65, You May Need an Additional $215K to Retire.”