Nobody wants to work all their life. Sooner or later, we all want to stop and just benefit from what we've worked hard for. Of course, we wish to be comfortable, especially when we get to the retirement age. Saving up for years does not ensure that we'll be set for life, though, that's why some of us their the risk on their money on various investment plans. In Singapore, the government wishes to ensure that every citizen is provided for when they retire. They require every working Singaporean and permanent resident to set aside a percentage of their income to the country's Central Provident Fund (CPF).
CPF is a compulsory all-inclusive investment plan that finances the retirement, healthcare, and housing needs of Singapore residents. Both employees and employers are obligated to make monthly contributions to CPF, which will then go into three accounts, namely, the Ordinary Account, the Special Account, and the Medisave Account. The CPF Special Account is savings for old age and investment in retirement-related financial products, and which gives Singaporeans a sense of security and confidence as they retire from work.
However, according to various reports, counting on cpf investment is not enough to obtain a financially secured life in retirement. If they use their investment on housing and education loans and other expenses as well, the payout of CPF will only likely cover 25% of their basic needs. This is unfortunate because many retirees depend on their CPF investment alone. Also, more than half of Singaporeans wouldn't be able to retire at 55 as they still aren't able to reach the CPF minimum total requirement of SGD100,000 at that age.
To supplement their needs when they're ready to retire, there are people who consider other investment plans. They feel that having other investment selections can better support their lifestyle as they age. But others aren't as confident with gambling their savings, while some don't have enough funds to invest. Admittedly, investing is not for everybody. But for those who don't wish to rely solely on their CPF retirement investment, there are low-risk alternatives that they can consider.
Though retirement planning in Singapore ought to begin early, it's not too late to educate yourself on the numerous investment plans available. To make healthy investments, you need to learn them first and understand which one is the most viable for you. Financial experts can help you choose the best investment choices and teach you how to handle risks to protect your investments.
CPF is a compulsory all-inclusive investment plan that finances the retirement, healthcare, and housing needs of Singapore residents. Both employees and employers are obligated to make monthly contributions to CPF, which will then go into three accounts, namely, the Ordinary Account, the Special Account, and the Medisave Account. The CPF Special Account is savings for old age and investment in retirement-related financial products, and which gives Singaporeans a sense of security and confidence as they retire from work.
However, according to various reports, counting on cpf investment is not enough to obtain a financially secured life in retirement. If they use their investment on housing and education loans and other expenses as well, the payout of CPF will only likely cover 25% of their basic needs. This is unfortunate because many retirees depend on their CPF investment alone. Also, more than half of Singaporeans wouldn't be able to retire at 55 as they still aren't able to reach the CPF minimum total requirement of SGD100,000 at that age.
To supplement their needs when they're ready to retire, there are people who consider other investment plans. They feel that having other investment selections can better support their lifestyle as they age. But others aren't as confident with gambling their savings, while some don't have enough funds to invest. Admittedly, investing is not for everybody. But for those who don't wish to rely solely on their CPF retirement investment, there are low-risk alternatives that they can consider.
Though retirement planning in Singapore ought to begin early, it's not too late to educate yourself on the numerous investment plans available. To make healthy investments, you need to learn them first and understand which one is the most viable for you. Financial experts can help you choose the best investment choices and teach you how to handle risks to protect your investments.
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