SINGAPORE – Discussions about retirement tend to revolve around a single number. One individual will need a million dollars to get by, while another might find $600,000 enough, while someone else would consider $400,000 just about right.
Instead of obsessing over the numbers, Mr Tan Ooi Boon, Invest editor of The Straits Times, told an audience of 101 ST subscribers – online and in person – that “the most important part of financial planning is you”.
“You are the most important asset of your life. Not your property, not your bank account, but you,” he said.
Mr Tan was speaking at the first InvestMe event – Retire With More Money – which was held at SPH Media’s auditorium at News Centre in Toa Payoh North on May 16.
If people know how much they need, they can plan for their retirement, he said, adding that “everybody can have enough money if they spend within their means”.
Straits Times Invest editor Tan Ooi Boon (left) answering questions at ST InvestMe’s first financial literacy event, Retire With More Money, with MONEY FM 89.3 presenter Lynlee Foo moderating.
ST PHOTO: SARAH LEE
One way to start planning for retirement is to look at how much they are spending monthly.
“Many people base their expenses by just looking at their credit card bills,” Mr Tan said.
“You need to look at all the receipts,” he added.
“When you really track your expenses, you will be shocked at how much you spend every month.”
A comprehensive retirement strategy must also account for medical needs.
As people get older, they are more likely to suffer from chronic conditions, such as high blood pressure and heart disease, which push up medical bills and health insurance premiums as a result.
“From 70 to 80 years old, it’s going to cost you $15,000 to $25,000 a year just to keep your private healthcare insurance,” Mr Tan said.
Some people may decide to downgrade their plans to cover only treatment in government hospitals.
Some may choose to give up their riders and keep their private insurance coverage, while others may choose to keep their riders and private insurance plan.
There is no right or wrong but Mr Tan said it is important for people to account for the higher premiums in their retirement plan if they want to keep comprehensive medical coverage.
The basic foundation of any retirement strategy is savings in the Central Provident Fund (CPF).
Mr Tan said: “CPF LIFE should always be your foundation, because no matter what happens, you will still get this money.”
CPF LIFE is the national longevity insurance annuity scheme that provides CPF members with monthly payouts for as long as they live.
Singapore citizens or permanent residents are automatically enrolled in CPF LIFE when they start their payouts any time between ages 65 and 70, if they are born in 1958 or later, and if they have at least $60,000 in their Retirement Account.
The two-hour InvestMe talk concluded with a question-and-answer session.
ST Invest editor Tan Ooi Boon (right) speaking with an audience member after signing her copy of his book, Retire With More Money.
ST PHOTO: SARAH LEE
An ST subscriber in his mid-30s, who joined in the session online, raised concerns about the lack of liquidity in both the CPF Special Account (SA) and Supplementary Retirement Scheme (SRS), which is administered by the three local banks.
CPF members can withdraw a portion of their CPF savings any time from the age of 55 while money in the SRS can be taken out only upon reaching the statutory retirement age that was prevailing when the account was first opened.
Mr Tan encouraged the participant to top up his SA to the Full Retirement Sum (FRS), which is $220,400 in 2026.
“If you can top up to the FRS now when you are in your mid-30s, by the time you are 55, you will belong to a new generation of Singaporeans who can have around $700,000 in their Special Account,” he said.
He added that those who contribute to the SRS must invest the money. Otherwise, the idle cash will be earning a mere 0.05 per cent interest per annum.
Other ST subscribers who joined the event in person said they benefited from the talk.
Ms Valerie Foong, who is in her early 30s, said the talk gave her hope that she can achieve her financial goals in a very practical way.
“I will consider CPF LIFE as part of my overall retirement and financial planning,” she added.
Ms Lydia Gan, 42, said this was not her first financial talk. Nonetheless, the workshop was a good reminder that reinforced some basic financial planning concepts.
Mr Tan’s comments struck a chord with her when he said that people spend most of their time working, but rarely take the time to audit their spending.
“Don’t think that you can just happily spend what you have earned. You have to be very conscious of your spending,” she said.
Ms Estelle Tan (right), a Singaporean entrepreneur who is based in Finland. Her mother and aunties are loyal fans of Mr Tan’s articles.
ST PHOTO: SARAH LEE
Ms Estelle Tan, a Singaporean entrepreneur who is based in Finland, said her mother and aunties are loyal fans of Mr Tan’s articles.
“My elders may not listen to my advice, but if Mr Tan writes about it, they will follow his advice,” she said.
She added that when Mr Tan wrote in February about the importance of making a lasting power of attorney (LPA), all five of them made an LPA.
The May 16 event was the first of six financial literacy courses that will be held in the coming months, on retirement planning, smart investing, financing life goals, expense management and property strategies.
To attend these courses, just sign up for the ST InvestMe 24-month All Digital or All Digital and Print subscription package, which costs $29.90 per month. Existing subscribers can recontract or upgrade their current plan without incurring any penalty for their existing plans.
In addition to the courses, subscribers can access the InvestMe website, which offers practical tips that can help them plan their finances better. The website will also feature columns and articles from ST Invest every weekend.
The next financial literacy course – Invest to Live, Not Live to Invest – will explore how one can build financial security while prioritising well-being and the life one wants to lead.
Subscribers can attend the event at the SPH Media auditorium on July 18, or join the session online.
