The current retirement age in Singapore is 62 years. With the average life expectancy here, of about 83 years, Singaporeans can expect to live close to 21 years, or more than
of our lives, in retirement.
If we assume that majority of Singaporeans start working after completing a tertiary education, at close to 21 years or even 23 if you have to complete National Service, this means you might spend approximately 40 years in the workforce.
Apart from having to fund your daily living expenses, you have to save up for many things including your home, vacations, gadgets, possible further education, your children’s education and more. Of course, you also have to plan for your retirement – leaving you with four decades to accumulate a retirement nest egg that probably needs to last close to two decades.
Falling short may put the burden of paying for your living expenses on your children and grandchildren – which may put them under financial stress.
With this in mind, it makes sense to start planning for your retirement as soon as possible to give you the best chance of retiring comfortably. Fortunately, retirement planning isn’t as challenging as some may make it out to be and there already exists several retirement planning schemes that we’re already automatically part of in Singapore.