Here’s Why Retirement Planning Still Matters, Even If You Intend To Keep Working Your Entire Life

Let’s face it, retirement planning is never a fun topic. Beyond that, everyone would have a more urgent financial obligation that they need to prioritise. This is why many tend to neglect putting in place a plan.

However, the idea of working into your golden years can seem achievable. In fact more Singaporean seniors want to work into their 80s and 90s not only for income, but to keep mentally and physically active as well. Sure, there’s nothing to stop you from working your entire life. However, this does not exonerate you from planning for your retirement.

Things don’t always go to plan. Just look at how COVID-19 has impacted the jobs market. For anyone reading into the statistics, older employees were more greatly impacted by the pandemic.

Beyond the uncertainties of economic downturns, companies shut down all the time and job functions become redundant as technology and needs change. Individuals also cannot prevent illness or injury no matter how careful they are.

Your decision to keep working into your retirement may not always be yours to decide. An accident or retrenchment might rob you of your ability to stay employed and earn a salary at any time. Should anything happen to your family members, you may also find it necessary to take time off work to care for your loved one.

As you age, you will also find it more challenging to restart your career after losing your job or being made redundant. The pace of change in the working world is accelerating, and your skillset may be outdated if you have stayed out of the workforce for several years off to recover from, or take care of someone with, a medical condition.

To cushion against potential financial impacts of the uncertainties life will throw your way, you are typically encouraged to:

However, you still need a retirement plan to act as a safety net in your golden years. With AIA Platinum Wealth Elite, you can continue charting a fulfilling and long career, while also enjoying peace of mind thanks to its protection benefits, and the option to make cash withdrawals during your retirement.

This differentiates the benefit of such plans compared to CPF LIFE – which is only meant for drawdown in your retirement years. If everything goes to plan, you can use this to supplement your retirement income on top of CPF LIFE. If you are unable or choose not to work during your golden years, you have an added financial safety net to fall back on.

AIA Platinum Wealth Elite gives you the ability to tap the best-in-class investment management companies, such as Baillie Gifford, BlackRock and Wellington Management, via one of three tailored funds – AIA Elite Conservative, AIA Elite Balanced and AIA Elite Adventurous – based on your risk preferences.

If the unforeseen happens, AIA Platinum Wealth Elite provides a lifetime of wealth protection (up to age 122) with a death benefit pay-out and terminal illness benefit. It also provides you security in the initial years of wealth accumulation, while your investments have not had the time to sufficiently compound, with guaranteed protection in the first 15 years.

While there’s no denying that experience counts, an older employee cannot work as hard or long as much younger employees. They may also have less up-to-date work skills. In any case, older employees will surely not be seen as the future of the company.

At the same time, you may also incur higher costs as you age. Your healthcare costs will only continue to rise as you become more susceptible to health conditions. Medical inflation also tends to be much higher than the core inflation rate in Singapore.

As such, retirement planning is critical to ensure you have adequate financial resources when you need it the most.