A career, regardless of how fulfilling, would have to stop sooner or later in our life. Once we get to a certain age, we just have to stop and simply benefit from the things that we have worked hard for. We of course want to be comfortable as well once we reach the retirement age. But saving up for years doesn't ensure that we'll be set up for life. That's why a number of us their the risk on their money on various investment plans. Not all of us have the guts to do so, however. In Singapore, the government makes sure that their citizens are provided for when they retire by requiring all working Singaporeans and permanent residents to contribute a portion of their income to the Central Provident Fund or CPF.
CPF funds the healthcare, housing, and retirement needs of Singapore residents. It is an obligatory savings plan in which both employees and their employers are obligated to make payments. Their payments 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.
Many retirees rely on their cpf investment alone. However, according to various reports, not even half of Singaporeans who are 55 years old reach the SGD100,000 lowest sum requirement of CPF. In addition, the payout is only likely to take care of 25% of their basic needs if they will also spend their investment for housing loans and other expenses. This means that more than half of Singaporeans wouldn't be able to retire at 55 if they want to live securely after.
This prompts others to turn to other investment schemes. They feel like having other investment selections can supplement their needs and support their way of life better as they age. But not everyone can do that. Some aren't confident with taking risks, while others simply don't have adequate funds to invest. And while investing is admittedly not for everyone, there are low-risk alternatives that they can consider if they don't wish to depend solely on their CPF retirement investment.
Though retirement planning in Singapore ought to begin early, it's not too late to educate yourself on the different investment plans available. To make good investments, you have to learn them first and understand which one is the most practical for you. Financial experts can help you choose the best investment selections and teach you how to manage risks to protect your investments.
CPF funds the healthcare, housing, and retirement needs of Singapore residents. It is an obligatory savings plan in which both employees and their employers are obligated to make payments. Their payments 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.
Many retirees rely on their cpf investment alone. However, according to various reports, not even half of Singaporeans who are 55 years old reach the SGD100,000 lowest sum requirement of CPF. In addition, the payout is only likely to take care of 25% of their basic needs if they will also spend their investment for housing loans and other expenses. This means that more than half of Singaporeans wouldn't be able to retire at 55 if they want to live securely after.
This prompts others to turn to other investment schemes. They feel like having other investment selections can supplement their needs and support their way of life better as they age. But not everyone can do that. Some aren't confident with taking risks, while others simply don't have adequate funds to invest. And while investing is admittedly not for everyone, there are low-risk alternatives that they can consider if they don't wish to depend solely on their CPF retirement investment.
Though retirement planning in Singapore ought to begin early, it's not too late to educate yourself on the different investment plans available. To make good investments, you have to learn them first and understand which one is the most practical for you. Financial experts can help you choose the best investment selections and teach you how to manage risks to protect your investments.
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