[Comment] ‘Can we retire in Singapore?’ – Christopher Tan

Mr Tan, stated in his article for the Business Times Singapore (28 Feb – 1 Mar 2015) that ‘a basic retirement’ is possible for each Singaporean. To note, he is Chief Executive Officer of Providend Limited, a retirement planning and investment company.

This assumes that you aim to achieve a Central Provident Fund Board (CPF) Life monthly payout between $650-700. The CPF Life programme is an annuity (you may also compare it with other private annuities on the market). For those seeking up to $1300 a month, one would need to possess $161,000 for his or her Retirement Sum (at age 55). As confirmed by the CPF site, one’s housing property can also be used to augment the Retirement Sum. Finally, those hoping for up to $1900, the target is $241,000 in one’s Retirement Account.

Conceptually, I would like to propose a modification of of Mr Tan’s pie chart as below.

Retirement Pie Chart

The fourth pillar (instead of three) is that of money/income/assets for others. The CPF Life angle is to term it as a ‘Bequest’. After one’s death the money from CPF Life would go to your beneficiaries. Yet, the money/income/assets for others would include the funds needed for one’s parents for example while they are alive. In a generation of nuclear families, this is increasingly challenging…

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