Retiring in style

Retiring in style

As lifespans increase and aspirations grow, the challenges to financing a good lifestyle in retirement become more complex. Don’t delay working towards building a nest egg for your future any longer.


Here are a few tips to get you started.

Decide on the type of post-retirement lifestyle you desire
1. Decide on the type of post-retirement lifestyle you desire

Retirement can mean different things to different people. Some look for an opportunity to spend more time with family, while others look for a chance to travel and pursue their hobbies. Whether it is living in another country or sailing across the Pacific in your own yacht, all these considerations will impact your projected financial needs. Don’t forget to map out your retirement dream together with your spouse. He or she may have different plans which can require a different budget!

Plan for the unexpected
2. Plan for the unexpected

You may want to plan for the unexpected while doing your financial plan. This can include changes in the property market cycle, extra costs for health issues in your family or changes in your professional life. Depending on your retirement portfolio, large swings in equity or bond markets may also affect your retirement plans.

Adjust for inflation
3. Adjust for inflation

Although inflation in Singapore has been relatively contained, you may still want to build in some reserves for rising prices which will erode your purchasing power. Some investments such as equity funds and/or inflation linked bonds help you to keep pace with inflation better than other investments such as bonds or cash deposits. Speak to us to build a portfolio that can beat inflation.

Ask yourself how long your retirement will last
4. Ask yourself how long your retirement will last

Asking yourself how long you are likely to live is a practical and relevant question. Life expectancy has been increasing, as a result of improvements in the quality of nutrition, healthcare and a growing awareness of health issues. The longer your retirement lasts, the larger your nest egg will have to be.

Test the Rule of 72
5. Test the Rule of 72

The "Rule of 72" is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. This can help you quickly calculate whether you are on track to attain your financial goals. For example, if you think your investments will grow by 6% per year, dividing 72 by 6 will give you 12, which is the number of years it will take your initial investment to double. Depending on the number of years you arrive at, you may need to invest more or delay your retirement.

While the "Rule of 72" can help to provide you with some rough calculations, speak to a Citi Priority Personal Banker to better understand your individual retirement options.

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