A rule of thumb: Save more
As people live longer, running out of money in retirement is a real possibility. Expanding your savings options—investing money beyond mandatory requirements into EPF (and taking control of your EPF investments with EPF i-Invest) – can help ensure your retirement money can go the distance.
Money enables choices. By ensuring you have what you need, you can take the worry out of your life and enjoy the retirement you’ve worked hard to achieve.
The retirement savings tripod
Think of saving for retirement as a ‘3-legged stool,” it includes:
- EPF savings and how you can potentially maximise your savings by reinvesting in unit trust funds through EPF i-Invest.
- Private Retirement Scheme contributions.
- Supplemented savings (like investments and savings)
Mandatory contributions are a great start, but most find they need more to continue living the lifestyle they are accustomed to in retirement. That includes varying their investments and taking advantage of solutions such as Private Retirement Scheme, EPF’s i-Invest online platform, savings plans and Unit Trust funds.
Think pay cheques vs. “play cheques”
When preparing for retirement start by estimating your expenses. Calculate your mortgage payment/rent, utilities, food, medical costs—things you can’t live without. Next, figure out how much you anticipate getting from EPF and any other guaranteed sources. Then consider your other investment options to make-up the difference.
View your money as paychecks and ‘play cheques,’” Pay checks (guaranteed income) pay for essentials. Play cheques (money based on market performance) fund discretionary spending.
Diversify your sources for retirement savings, and you can rest easy (and have fun!) in the next chapter of your life.