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When we think about retirement planning in Singapore, we typically see it as solely a financial matter. This makes sense. Whether it’s retiring at age 65 when we start receiving our CPF LIFE payouts or enjoying early retirement in our 50s, we need to accumulate enough savings to retire well in Singapore.
According to a 2016 Singstats report, a household led by someone who is above age 60 will spend an average of $3,586 per month. If we assume a household size of two, this works out to be about $1,793 a month for each person. This amount exceeds the CPF LIFE payout that we are eligible to receive at age 65, which ranges between $1,430 – $1,530, if we set aside the Full Retirement Sum at age 55 ($186,000 as of 2021). There is also an option for us to set aside the Enhanced Retirement Sum ($279,000 as of 2021) if we want higher monthly payouts of about $2,080 – $2,230 per month from age 65.
If you feel that the CPF LIFE payouts are far from sufficient for retirement, you are not alone. According to a retirement survey* done by Etiqa Insurance Pte. Ltd. in collaboration with YouGov, only 3 in 10 Singaporeans believe that their CPF LIFE payouts are sufficient to cover potential medical and healthcare-related bills. On the same note, only 3 in 10 Singaporeans believe that they can sustain their ideal lifestyle after retirement with just their CPF LIFE payouts.
This isn’t a definite statement to say that CPF LIFE payouts are not enough. The simple fact is that CPF LIFE payouts are sized such that they are sufficient to provide us with a basic lifelong income for retirement. However, many of us may desire a more comfortable lifestyle after retirement that goes beyond basic provisions. For example, we want to pursue our hobbies (which can be expensive), spend time with the people we love, and have the freedom to experience the life we want during our golden years.
Retiring Well Isn’t Only About Having Sufficient Passive Income Each Month
There is a tendency to think that retiring well is only about having sufficient passive income each month. This isn’t true.
In the Etiqa retirement survey done in collaboration with YouGov, 96% of respondents believe that being physically and emotionally healthy is among the topmost important factors for their retirement. This is sensible, because no amount of money is ever enough if we lack good health (in both physical and mental aspects) to enjoy our retirement.
Results based on a 2020 YouGov survey commissioned by Etiqa
When we think about being physically healthy in our old age, we think of enjoying life without the burden of critical or chronic illnesses. More often than not, the state of our physical health as we age is a cumulative result of how we lived in our younger days. Like how we are now preparing ourselves financially for the future, we also need to start adopting a healthy lifestyle today in order to enjoy peak physical health during our retirement.
And if we are fortunate to enjoy good health after retirement, we need to keep up with our health by staying active, eating right and going for regular check-ups.
Similarly, our emotional and mental well-being are areas that we cannot afford to ignore. Maintaining positive relationships with our family members and friends in our younger days is vital. Many of these relationships will stay with us. If we struggle to retain good relationships with the people around us in our younger days, we may face similar challenges as we age.
Introducing Amber, A Retirement Ecosystem Platform That Aims To Help Singaporeans Have A Holistic Retirement
To help Singaporeans have a holistic retirement, Etiqa has launched Amber, a platform designed to connect Singaporeans to a range of valuable services that may come in handy after retirement.
Amber retirement ecosystem focuses not only on financial health, but also physical and mental health
With Amber, members can access healthcare and medical services such as telemedicine, nursing, caregiving, dental and physiotherapy. This is helpful to not only retirees who may require these services, but also for those of us who are looking after the needs of our elderly parents, and would like to engage external help.
With Amber, we can connect to healthcare partners that provide a wide range of services
Beyond the essential services, Amber connects members to interesting recreational activities. Members can search to participate in health and wellness classes such as yoga and nature walks, arts and crafts workshops and also dementia care workshops. By providing easy access to these activities, Amber hopes to help its members to explore new interests and to expand their social network.
Amber also curate activities that are suitable for retirees to participate in
As part of Etiqa’s launch special, the first 150 customers who sign up as an Amber member will receive $100 worth of Amber dollars to redeem up to 3 Amber Retirement Ecosystem services or activities, and an additional $50 Etiqa e-wallet credit for purchase of any Etiqa’s retirement plan within 12 months. Terms and conditions apply.
Enjoying Our Retirement Requires Good Health, Relationship & Finance
To enjoy our retirement, we need to put ourselves in the best possible position financially, physically and emotionally. With easy access to healthcare providers and lifestyle activities via platforms like Amber, we are one step closer towards improving our overall well-being and having a fulfilling retirement.
You can find out more about how Amber can help us with our physical, mental and financial needs during our retirement in this short 30 seconds video.
Terms apply. Protected up to specified limits by SDIC.
*The retirement survey done by Etiqa Insurance Pte. Ltd. was conducted by YouGov from 15 to 19 October 2020 surveying non-retirees in Singapore, with sampling based on the national representation of Singapore. The final sample size is 1,235, of which 1,158 are non-retirees.
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