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How to Choose a Retirement Plan – 3 Things You Should Know

How to Choose a Retirement Plan in Singapore? The earlier you start and the more you save, the greater your chances of a comfortable retirement. In Singapore, there are different types of Retirement Plans that can help you achieve this goal.

But what should you do to make sure you get the right one for you? Here are 3 key things to keep in mind when choosing which retirement plan is right for you.


1) How much risk you can bear —How to Choose a Retirement Plan

As you get older, you need to adjust your portfolio of investments to reflect a lower risk level. You also have less time to recover from any losses.

As a general rule, if you have a longer time horizon, you can afford to take more risks with your investments. If you are just starting out, it is wise to invest your retirement funds in a balanced manner because you have more time to recover from any losses than someone who is closer to retirement age.

Age 30 or below:

If you’ve just started working or recently entered the workforce, you probably don’t have a ton of cash on hand to spare, which means that paying into a savings account might not be an option for you. That’s okay, though—you still have time! The best thing for you to do right now is get into the habit of saving up something—anything—every month.

When choosing a retirement plan, it’s important to choose one that’ll be there when you need it. That can be especially challenging when you’re younger, because your financial picture — and your goals — will likely change as you get older.

Age 31 to 40:

If you’re between 30-40 years old and have started to build up savings, then consider a plan that allows early withdrawals if necessary. This will give you more flexibility in case an emergency comes up and you need to access some of your savings before retirement age.

Trying to figure out which type of plan is right for you can be daunting. You may not know if you’ll want to draw on your savings in 10 years or 20 years, and the many options available can make it hard to choose. On top of that, the state of the economy and your career growth are factors that can influence how well your plan will fit into your future planning in the long run. Go with a flexible retirment plan.

Age 41 to 50:

When people are in their 40s or 50s, they can choose what type of retirement plan they want.

If you’re in your 40s or 50s, you’re probably thinking about what’s going to happen when it’s time for you to stop working. If you’re in your early 40s and thinking about retiring, then you’ve got a good amount of time before you have to be absolutely sure that everything is set. But if you’re in your late 50s, you’ll want to think more carefully about what sort of plan will work best for the rest of your life.

After the age of 50, it is perhaps time to shift your portfolio to a more conservatively one. This is because you have less time to recover from any losses. If you are an aggressive investor, you can take more risks in earlier stages of your life.

Retiring earlier than 65?

If you retire before you turn 65, you will need to watch out for additional factors that affect the money you may need to live off of in the near future.

Getting started on a retirement plan is simple. First, you will choose annuity payout amount you need each month or year. Next, you will decide how long the plan should last until you are eligible for your CPF LIFE payout. Once your plan is created and funds have been allocated, it’s time to sit back and watch your money grow!


2) Is insurance part of the Plan? —How to Choose a Retirement Plan

Insurance is a tricky thing—we’re all sort of used to it, but there’s a lot that goes on behind the scenes that we don’t see. And in terms of retirement plans, insurance can make a huge difference in how well it fares against other options you have.

retirement plan with insurance

There are a few things that you’ll want to keep in mind before you choose a specific retirement plan:

All policies cover death, some total and permanent disability (TPD), and some have both.

1) Do you want insurance for TPD or illness? Some policies cover both TPD and illness, while others exclude one or the other.

2) Do you want additional coverage?

To start, you have to know what kind of insurance coverage you want included in your retirement plan. Some plans have additional coverage such as:

  • Disability Care Benefit: Keep your quality of life high. Receive additional guaranteed payouts should you suffer from unexpected disability.
  • Chronic Illness Care Benefit: You will receive additional coverage should you be diagnosed with listed illnesses.


3) Read your plan’s summary plan description or ask your provider if they can help explain any terms or definitions you don’t understand before making a decision and signing any documents.

The process of choosing a retirement plan in Singapore can be difficult, especially for those who are unfamiliar with the plans.

how to choose retirement plan

Below is a brief overview of what you should keep in mind when going through this decision-making process.

  1. Read your plan’s summary plan description or ask your adviser if they can help you understand any terms or definitions that you don’t understand before making a decision and signing any documents.
  2. Once you’re in, make sure your payments are directed directly to the insurer and not elsewhere. If you have questions about this, talk to an adviser who can clear up any confusion.
  3. Know your options—and don’t be afraid to ask for help choosing between two similar options like paying premium monthly or annually for your annuities—and then move forward with confidence!

Of course, you’ll want to choose your plan based on the plan’s specific features, such as what it offers in terms of payouts you can receive and how much insurance cover it provides. But it’s also important to understand how those features fit into your overall financial picture.

Remember, you can always consult an expert to help you navigate the process if it seems overwhelming or confusing.


Takeaway: Having a retirement plan can give you a peace of mind.

Retirement planning is essential for everyone who wants to have a comfortable life after working. Singaporeans are lucky that our country has many options when it comes to retirement plans.

choose the right retirement plan

Not sure where to start? Our team can help you take the first step.

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