With the average life expectancy of men and women in Singapore currently at 82 and 86 years¹
respectively, will your savings be sufficient?

Thanks to better healthcare, Singaporeans are living longer than before. Longevity is something to celebrate, yet unfortunately, many of us might outlive our savings.

¹ Source: Singapore Department of Statistics, 12 February 2008

Assuming a long-term average inflation rate of 4% per annum, how will the value of savings be eroded over time?

With the inevitable rise in cost of living, your savings could run the risk of being drastically eroded in value.

Based on a 4% annual inflation rate, a cash savings of S$100,000 today will be reduced by inflation to S$66,483.26 in 10 years and S$54,208.64 in 15 years.

Can you be sure that your medical insurance alone is sufficient to meet rising medical costs?

Medical costs are steadily rising as people live longer. At the same time, chronic illnesses like cancer and coronary diseases, which require costly and prolonged treatments, are on the rise in Singapore. For many of us, our nest egg may be seriously depleted by medical needs, leaving us with insufficient funds for retirement.

How much and how soon can you draw down on your retirement savings?

When you draw down on your retirement savings too much and too quickly, your savings will run out. But with a sensible withdrawal level and proper investment of your savings, you can stretch your your money as well as enjoy potential earnings well into your retirement.

Will your choice of investments be able to meet your retirement plans?

The recent global financial turmoil has ravaged many retirement plans. Many, who invested in a single asset class like equities, were caught by the global downturn and experienced a big decline on their retirement nest egg.

On the other hand, staying too conservative by locking up your savings may also not help you grow your retirement funds to meet your retirement needs. By investing in a range of asset classes, you can spread your risks while enjoying potential investment returns in a growth market.