Retirement Archives | Page 5 of 7

Financial Tips For People Dating In Retirement

Dating later in life can be a challenge not only because of your limited income resource but also because of the ever-so-changing dating landscape. In the era of Tinder and online dating sites, dating is entirely different from your first time. However, I believe that if your health permits (i.e.,you have no chronic illnesses or serious health concerns), it is never too late to fall in love again!

Despite its challenges, persevere with these 4 Financial Tips For People Dating In Retirement:

1. REKINDLE THE OLD FLAMES

Use modern technology to your advantage by embracing the power of social networking. Free sites such as Facebook and Twitter, allow you to look up your old friends whom you lost touch with. Do not be afraid to reconnect with your previous secondary school, university, and workmates by instant messaging or even e-mailing them. This way, you are expanding your social circle and increasing your chances of finding a date.

2. CONSIDER ONLINE DATING

If rekindling did not work for you, another inexpensive yet tricky strategy is to consider online dating. For many dating sites, you need not spend a cent as they offer free memberships. But you must proceed with caution as there may be scammers and imposters.

The leading online dating sites in Singapore include SingaporeCupid.com and
SingaporeLoveLinks.com. SingaporeCupid.com offers their services to more than 14,000 members. It has a rather retro design that may seem messy at first but you will soon get a hang of it. With its practical options, you can search for matches based on ages, locations, and other keywords. Members can either be free or deluxe. Deluxe members pay about S$16.95 for 1-month membership.

While SingaporeLoveLinks.com is operated by one of the largest niche dating networks in the world – Cupid Media. What is special about this site is that they bring together the singles of different nationalities. Also, they offer useful functions such as video exchange and instant messaging to its paid members. Members can either be gold or platinum. Gold members pay about S$29.98 for 1-month membership and platinum members pay about S$39.99 for the same time.

3. KNOW EACH OTHER’S MONETARY VALUES

Once you meet someone new, it is important to understand and know each other’s values about money. No need to talk about the specific numbers at first but you need to get an idea of how your date likes to save and spend.

Learn to put yourself in your date’s situation (i.e., spender or saver) by recognizing his or her financial strengths. For example, if your date is a saver then, he or she may view money as an important currency that shall not be wasted.

4. SET CLEAR EXPECTATIONS

After several dates, solidify your bond by maintaining good communication with your date. You must set clear expectations about who pays for what as this notion changes over time.

Time has led to both genders being relatively equals. In fact, a poll by Cosmopolitan showed that less than 25% of women believe that their partners should always pay for the bill and about 40% of women think that couples shall always split the bill.

Image Credits: pixabay.com (License: CC0 Public Domain)

Gone are the days when men pay for all the bills!

Sources: 1, 2, & 3

Making Your Will In Singapore: Are Lawyers Non-Compulsory?

Whether we like it or not, death is inescapable. This is why it is important to prepare a “Will”, especially if you are retiring soon. The essence of making a Will is not only to prepare for the event of death but also to make sure that others understand your parting wishes.

In Singapore, the surviving spouse is usually entitled to one half while the other half is divided among the children. But if there is no Will, there are higher chances that no one would be held responsible to sort out the estates or to take care of the orphaned children. Without a Will, your assets may be distributed to people whom you do not intend to give anything to. Certainly, it is simpler, more responsible, and more convenient to consider making your own Will.

Clueless about the entire process? Start here:

DEFINITION

An individual makes a legal declaration or a Will to provide the administration and distribution of what he or she owns among his or her beneficiaries at death. The person who made the will is called the “testator” while the people who will inherit the assets are called “beneficiaries”. The Wills Act governs all the Wills in Singapore.

A WILL’S FORMALITIES

1. The testator must be at least 21 years old.

2. The testator must sign the Will accordingly. If he or she is unable to do so, a trusted person may sign in his or her presence.

3. Two or more witnesses are required and they must sign the will too, in the presence of the testator.

4. The two witnesses cannot be beneficiaries of the will (e.g., spouse of the testator) but the third witness can be a beneficiary.

MAKING A WILL IN SINGAPORE

Interestingly, you do not need a lawyer to make a Will!

A 21-year-old individual of sound mind can make his or her own Will and change it any time in the course of one’s life. But if you have insufficient legal knowledge on the subject, your “homemade Will” may be at risk of being ineffective or invalid. So, it is still best to seek legal advice. After writing one, you must keep a copy in a secured place and let your family members know of its existence.

Image Credits: pixabay.com (License: CC0 Public Domain)

To ease the process, you must approach the Wills Registry to deposit the document’s information. Expect a fee for it.

Sources: 1, 2,& 3

Plan For Your Retirement In These Upcoming CPF Roadshows

Are you prepared for what the future holds?

Many of us who have just started joining the workforce have the notion that that saving for retirement can start in later years and the main priority is to focus on current needs and wants such as upgrading to a nicer home, getting a new car and travelling once a month.

The hard truth, however, will eventually catch up with us when we are in our 40s and 50s when we realised that our retirement savings is hardly enough to provide for our long term needs.

There is never a “good” time to start planning for our retirement. But there are advantages to starting early. If you start early, you will have a longer time horizon and that means more time to grow your savings. If you have made investments, a long term horizon will also help to ride out short-term price fluctuations on your investments.

But, if you start late, you will have to work harder at growing your retirement savings. If you cannot afford to lose money, you should avoid investments that come with higher risks. You may even need to think of delaying retirement provided you remain employable. – MoneySense.gov.sg

Unsure of how to plan for your retirement? Visit the upcoming roadshows organised by The Central Provident Fund Board (CPFB) to pick up insightful tips.

Event Date	Event Time	Venue
28 to 30 August 2015	11:00AM to 06:00PM	Bedok Mall
13 September 2015	11:00AM to 06:00PM	Toa Payoh HDB Hub
10 October 2015	11:00AM to 06:00PM	Jurong Point
31 October 2015	11:00AM to 06:00PM	Ang Mo Kio Center Stage
14 November 2015	11:00AM to 06:00PM	Braddell Heights Community Hub

Hear from celebrity and entrepreneur Irene Ang and financial expert Christopher Tan, CEO of a financial advisory firm as they discuss retirement planning. Win prizes at various game booths when you test your financial knowledge too!

Visit www.cpf-bigrchat.sg to find out more

For enquiries on the roadshows, please email the organiser at [email protected]

5 Helpful Steps To Talk To Your Elderly Parents About Money

Money gives people, of all ages, the decision-making opportunities they need. Unfortunately for elderly parents, research has shown that financial decision-making ability declines after age 53. This maybe attributed to the 2013 survey done by National Endowment for Financial Education which found that 7 out of 10 adults have difficulty discussing to their families about who will make the financial decisions on behalf of their elderly family member.

Talking about the aging parents’ finances is a good idea but that does not mean people actually do it. Some people avoid the subject because it raises uneasy situations (e.g., quarreling over the estates or feeling “extra” sensitive toward the elderly). Resolving this negative mindset will help your aging parents to organize their financial life. And, that is the most important thing right now.

So, here are 5 Helpful Steps To Talk To Your Elderly Parents About Money…

1. DO YOUR RESEARCH

You have one goal – to organize your elderly parents’ financial life. Know what issues or topics to discuss that will aid this goal. Due to the declines in someone’s body as they age, topping the list is healthcare. Also, you must consider their life insurance, medical insurance, or long-term care coverage policies. Then, talk about estate and other assets. Having a last will and testament ready is a crucial thing.

2. GATHER DATA

After researching the topics to discuss, you must prepare the documents needed. These documents are the banking statements, credit card bills, tax records, insurance policies, and so on. Put these documents in one safe place such as a relatively small safe deposit box at home. Grant access only to the people who are really trusted (e.g., the lawyer or immediate family member).

3. CONVERSE TO THEM STRATEGICALLY

Before talking to your parents, build a strategy that will work for your family dynamics. For instance, some families are more comfortable with having everyone around while other feel that they are being ganged up by their children. Another tip is to talk to them as if you are talking to your adult peers with objectivity and compassion. Do not make them feel that you are treating them as young children.

4. START THE DISCUSSION

All your homework led you to this moment. Emphasize on the benefits of the talk and speak with love. Delaying the talk will only be more expensive because as health declines, premium prices increase. Ease the flow of the conversation by adding real-life experiences as examples.

Image Credits: pixabay.com (License: CC0 Public Domain)

5. LEARN FROM THE EXPERIENCE

Traditional financial advisors suggest that parents save for their own retirement first before saving for tertiary education. This is because you only have one shot at retirement while there are many ways to get student loans. With this experience, you must realize that it is necessary to save as much as you can for retirement during your peak years (i.e., aged 20-35) in order to age gracefully.

Sources: 1 & 2

Is Your CPF Enough to Retire On?

Many Singaporeans look to their CPF to provide for retirement. As the General Election draws close however, some critics have panned the retirement scheme, saying it no longer suffices. Have a look at some of the realities of the CPF, and decide for yourself:

What is the CPF?

The Central Provident Fund (CPF) is a mandatory savings scheme for Singaporeans. This fund is used to provide for a range of crucial financial needs, such as healthcare, retirement, and home ownership.

Your CPF is automatically deducted from your wages, and your employer is also required to pay a portion into your CPF. Compulsory CPF contributions are as follows:

Age	Your contribution	Your employer’s contribution
Up to 50 years old	20% of monthly income	17% of monthly income
From 51 to 55 years old	19% of monthly income	16% of monthly income
From 56 to 60 years old	13% of monthly income	12% of monthly income
From 61 to 65 years old	7.5% of monthly income	8.5% of monthly income
Above 65	5% of monthly income	7.5% of monthly income

Your CPF is divided into an Ordinary Account (OA), a Special Account (SA), and your Medisave account. The interest rates for these accounts (as of 2015) are:

OA – 3.5% per annum
SA – 5% per annum
Medisave – 5% per annum

You do have the option to invest your CPF money in other schemes, based on an approved list. However, the returns are not guaranteed, and the government will not replace any losses you incur. You can see further details on allowable investments here.

Once you reach the age of 55, you will be able to withdraw all the money except for a required Minimum Sum. The Minimum Sum is placed in a Retirement Account (RA). From the age of 65, savings in your RA are disbursed to you in monthly payouts, which should ideally last till you are 90.

The Minimum Sum (as of 2015) is S$155,000. From the age of 65, this should provide monthly payouts of around S$1,200.

Is the CPF Alone Enough to Retire On?

The answer for most Singaporeans is “yes, but…” Here are some of the factors you need to consider:

Your CPF depletes very quickly when used to pay for your flat
The CPF rate barely keeps pace with inflation
A lot depends on how comfortable you want your retirement to be

1. Your CPF Depletes Very Quickly When Used to Pay for Your Home

Buying a home is one of the ways Singaporeans use their CPF. When you take out a HDB concessionary loan, the entirety of the down payment can come from your CPF*.

(*This does not apply to private bank loans, in which only 15% of the down payment can be made with CPF.)

CPF can also be used to pay for certain fees, such as the legal paperwork for the purchase. Mortgage repayments can be taken from your CPF rather than your bank account.

But this means that, if you use too much of your CPF money purchasing a house, there is a real possibility of it running out.

If you use HDB loans, the interest rate is 0.1% above the prevailing CPF rate (3.6% at present). If you use a private bank loan, the rate fluctuates according to an index, such as SIBOR or SOR. Both options can wipe out your CPF, and leave too little even for the Minimum Sum.

So if you want CPF to provide for your retirement, never overreach and buy a property beyond your means. If you buy the biggest house you can possibly qualify for, be aware that you could be forced to sell it to fund your retirement.

2. The CPF Barely Keeps Pace with Inflation

Singapore’s core inflation hovers at around 3%, which is on par with most developed countries. This means that the general cost of living goes up by 3% with each passing year, and your wealth is being depleted if it can’t grow as fast.

Given the CPF’s return of 3.5% and 5% (for OA and SA respectively), your real returns are only around 0.5% for OA and 2% for SA. This means that relying on CPF alone will provide for a very modest retirement.

Should you have plans after you stop working (e.g. travel the world, look after your grandchildren financially), it may not be a good idea to rely solely on CPF. You should speak to a financial advisor or a wealth manager about different investment products, which can complement your CPF.

3. A Lot Depends on How Comfortable You Want Your Retirement to Be
A pay out of S$1,200 a month is comfortable for some people, but painful for others. We are all used to different standards of living. If you enjoy a high income of S$15,000 a month, for example, switching to S$1,200 a month will be extremely painful.

As such, it is important to work out your desired Income Replacement Rate (IRR). This can be done with holistic financial planning, which also takes into account the amount you will need at retirement, and how long you have to get there (your investment horizon).

Do not believe any arbitrary “rules”, such as sayings that you must have a million dollars to retire in Singapore, or that S$500,000 is enough to quit your job. Such figures are not grounded in your specific needs. Speak to a qualified wealth manager or financial advisor to identify the sum you need.

A Note on Debt
Personal loans range from 6 – 8% per annum, and credit card loans reach around 24%. Your CPF interest rates (or the rates of even the most phenomenal financial products on the market) will never “outgrow” your debt. It is almost impossible.

If you want to retire well, you must pay down your debts early. Be an extreme miser with loans. Make comparisons every time you need money from the bank. You can find the best loans on SingSaver.com.sg.

In Summary:
The CPF is enough to provide the bare basics, when it comes to retirement. However, your retirement will not be lavish if you rely on CPF alone, especially if you are used to a more expensive lifestyle.

(This article is brought to you by SingSaver.com.sg)

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