No matter how rewarding our career is, it's got to stop at some point in our life. We all wish to just benefit from the fruits of our labour when we get to the retirement age. Naturally as well, we want to be comfortable. That isn't guaranteed, though, by just saving up for years. That's why a number of us their the risk on their money on various investment plans. However, not all of us have the audacity or the funds to do so. In Singapore, the government ensures that citizens are provided for when they retire from work by requiring permanent residents and working Singaporeans to contribute to the Central Provident Fund or CPF a percentage of their earnings.
CPF funds the healthcare, housing, and retirement needs of Singapore citizens. It is an obligatory savings plan in which both workers and their employers are required to make payments. Their contributions will go to three accounts: the Ordinary, Special, and Medisave Account. The CPF Special Account is the old age savings for retirement-related financial products investments. This is designed to give Singaporeans confidence and a sense of security as they retire from work.
A lot of retirees depend on their cpf investment alone. However, according to different surveys, not even half of Singaporeans who are 55 years old reach the SGD100,000 minimum total requirement of CPF. Also, the payout is only likely to cover 25% of their basic needs if they will also spend their investment for housing loans and other costs. This means that more than half of Singaporeans wouldn't be able to retire at 55 if they wish to live securely after.
To supplement their needs when they are ready to retire, there are people who consider other investment plans. They feel that having other investment alternatives can better support their way of life as they age. But others aren't as certain with taking a chance on their savings, while some don't have sufficient funds to invest. Indeed, investing is not for everyone. But for those who don't want to depend exclusively on their CPF retirement investment, there are low-risk options that they can consider.
Though retirement planning in Singapore should begin early, it's never too late to educate yourself on the various investment choices available. To make good investments, you have to learn them first and find out which one is the most viable for you. Financial experts can help you choose the best investment methods and teach you how to handle risks to protect your investments.
CPF funds the healthcare, housing, and retirement needs of Singapore citizens. It is an obligatory savings plan in which both workers and their employers are required to make payments. Their contributions will go to three accounts: the Ordinary, Special, and Medisave Account. The CPF Special Account is the old age savings for retirement-related financial products investments. This is designed to give Singaporeans confidence and a sense of security as they retire from work.
A lot of retirees depend on their cpf investment alone. However, according to different surveys, not even half of Singaporeans who are 55 years old reach the SGD100,000 minimum total requirement of CPF. Also, the payout is only likely to cover 25% of their basic needs if they will also spend their investment for housing loans and other costs. This means that more than half of Singaporeans wouldn't be able to retire at 55 if they wish to live securely after.
To supplement their needs when they are ready to retire, there are people who consider other investment plans. They feel that having other investment alternatives can better support their way of life as they age. But others aren't as certain with taking a chance on their savings, while some don't have sufficient funds to invest. Indeed, investing is not for everyone. But for those who don't want to depend exclusively on their CPF retirement investment, there are low-risk options that they can consider.
Though retirement planning in Singapore should begin early, it's never too late to educate yourself on the various investment choices available. To make good investments, you have to learn them first and find out which one is the most viable for you. Financial experts can help you choose the best investment methods and teach you how to handle risks to protect your investments.
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