Hey everyone, welcome back to the Investing Iguana channel, it's Iggy here! Today, we're diving into a topic that's sparking conversations across Singapore - the government's bold decision to extend the working age. Imagine clocking in at your job not just until you're 60 or 65, but until the age of 70. That's right, by 2030, Singaporeans are expected to remain in the workforce until they hit the big 7-0. Why this shift, and what does it mean for you, whether you're just starting your career or eyeing the horizon of retirement? Stick around as we break down the details and implications of this groundbreaking move.

In the not-so-distant future, starting from 2026, there will be a significant shift in the retirement landscape. The metaphorical time when you can finally hang up your work boots and enjoy the fruits of your labor is being postponed. The retirement age is set to increase to 64 years old. Yes, you read that correctly. But that’s not all. By the year 2030, the retirement age will be pushed even further to 65 years old.

But the changes don’t stop there. The age for re-employment is also set to rise. In 2026, it will reach 69 years old and by 2030, it will hit the 70-year mark. What does this mean for you? Well, it means that your employer is obligated to offer you the opportunity to continue working until you reach these ages, assuming you are willing and able to do so.

You might be wondering why these changes are taking place. The answer lies in our increasing life expectancy. Thanks to advancements in healthcare, we are living longer, healthier lives. This is great news for us as individuals, but it also presents a challenge for countries like Singapore, where the manpower situation is tight.
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By raising the retirement and re-employment ages, the aim is to keep experienced seniors in the workforce for a longer period. This allows them to continue contributing their valuable skills and wisdom. It’s a win-win situation. Seniors get to stay active and engaged, while the country benefits from their expertise and experience. So, while the game might be changing, it’s changing in a way that benefits everyone.

Here’s an important detail to note - qualifying for re-employment isn’t as simple as reaching the new retirement age. There are certain criteria that you need to meet. First and foremost, you should be performing well in your current role. In other words, you need to be doing a stellar job. Additionally, you should be in good health, or as the saying goes, “fit as a fiddle.”

If you joined the company after the age of 55, there’s another requirement. You need to have been with the company for at least two years by the time you reach the new retirement age. This is to ensure that you have had enough time to demonstrate your value to the company.

When you do get re-employed, it’s typically on a yearly contract. This contract can be renewed every year, giving both you and your employer flexibility and the opportunity to reassess the situation on a regular basis.

It’s important to note that these changes didn’t happen overnight. The government first proposed this idea back in 2019. They carefully planned it out step by step to give companies ample time to adapt. The first move was made in July 2022, and with this upcoming change, they’re encouraging employers to think ahead.

One key aspect that employers are being nudged to consider is upskilling their seasoned employees. With the increase in retirement and re-employment ages, it’s crucial that older employees remain sharp and relevant in the ever-evolving workplace. Upskilling, or learning new skills, is a great way for them to do this. It not only benefits the employees themselves but also the companies they work for and the economy as a whole. So, while these changes may seem daunting at first, they’re designed with the best interests of everyone in mind.

Before you start worrying, let’s clear up a common misconception. The changes in retirement and re-employment ages do not affect your Central Provident Fund (CPF) withdrawal or payout ages. These remain unchanged. So, you can still look forward to receiving your CPF savings as planned.

Now, let’s shift gears a bit and talk about something equally important – the Career Conversion Programme. This programme is designed to help individuals who are considering a career switch or mature workers who are finding it challenging to secure employment. The good news is that this programme is getting a significant boost.

The salary support cap, which is the maximum amount of salary that the programme will cover, is set to increase. For those who are seasoned in their field or have been out of the workforce for a while, the cap is jumping to $7,500 a month. For others, the cap is rising to $5,000 a month. This increase in support is a significant step towards making career transitions more manageable.
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The idea behind this increase is to make it easier for individuals to pivot into new roles or industries. The programme can cover up to 90% of the monthly salary for those who need it most. This means that if you’ve been thinking about making a career switch, now might be the perfect time. With this increased support, you can focus on acquiring new skills and adapting to your new role, rather than worrying about financial stability.

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• New initiative expands Career Conversion Programme
• Strategy prepares workforce for long-term growth
• Upskilling and career shifts increasingly important
• Age seen as an asset, not a barrier
• Emphasis on continuous learning and adaptation

In addition to the changes in retirement and re-employment ages, the Manpower Minister is introducing a new initiative. This initiative aims to expand the Career Conversion Programme to not only assist those facing redundancy but also to help current employees prepare for new roles within their companies. This is a strategic move that encourages employers to be proactive and forward-thinking in how they equip their teams with the necessary skills for future growth.

This initiative is part of Singapore’s broader strategy to prepare its workforce for the long haul. The goal is to ensure that everyone, regardless of age, is ready and able to contribute meaningfully to the workforce. This approach recognizes and values the experience and wisdom that comes with age, while also acknowledging the importance of staying relevant in an ever-evolving job market.

Upskilling and career shifts are becoming increasingly important in today’s dynamic work environment. By providing support for these transitions, the government is helping individuals adapt to new roles and industries. This not only benefits the individuals themselves but also contributes to the overall growth and competitiveness of the economy.

In essence, these changes reflect a shift in mindset. Rather than viewing age as a barrier, it’s seen as an asset. Experience and wisdom are valued, and there’s an understanding that with the right support and opportunities, older workers can continue to play a significant role in the workforce. At the same time, there’s a recognition that staying relevant requires continuous learning and adaptation. Hence, the emphasis on upskilling and career shifts.
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So, while the journey may be long, the destination is clear. Singapore is committed to creating a workforce that’s inclusive, adaptable, and ready for the future. And with these changes, it’s taking significant steps towards that goal.

And there you have it, folks - an in-depth look at Singapore's bold move to extend the retirement age to 70. It's clear that this initiative isn't just about keeping our seniors in the workforce; it's about valuing their contribution and tapping into their wealth of experience for the betterment of our economy and society. Whether you're a young professional or a seasoned veteran in your field, this change is set to impact us all. Now, I'd love to hear your thoughts on this.
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Do you see yourself working till 70? What challenges and opportunities do you anticipate with these changes? Drop your thoughts in the comments below, and let's get the conversation going.

If you found this analysis helpful, don't forget to like, share, and subscribe to the Investing Iguana for more insights into Singapore's financial landscape. Until next time, keep investing smart and stay savvy, my friends!

Hi everyone, welcome back to The Investing Iguana, where I share with you tips and tricks on how to grow your wealth and achieve financial freedom. I’m your host, Iggy, and today we’re going to talk about 8 of the worst money mistakes that can blow up your retirement in Singapore.
Retirement is something that many of us look forward to, but also something that many of us are not prepared for. According to a survey by HSBC, only 27% of Singaporeans feel confident that they will be able to maintain a comfortable standard of living in retirement1. That’s a pretty low number, considering that Singapore is one of the most expensive countries in the world to live in.
So what are some of the common money mistakes that can ruin your retirement plans? And how can you avoid them? Let’s find out.
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The first and biggest mistake that you can make is not having a retirement plan at all. A retirement plan is a roadmap that guides you on how much you need to save, invest and spend for your golden years. Without a plan, you’re basically flying blind and hoping for the best.

A retirement plan should include:

• Your retirement goals and aspirations
• Your expected retirement income and expenses
• Your desired retirement age and lifestyle
• Your risk tolerance and investment strategy
• Your contingency plans for emergencies and health issues

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Having a retirement plan can help you stay on track and monitor your progress. It can also help you adjust your plan as your circumstances change over time. If you don’t have a retirement plan yet, don’t worry, it’s never too late to start. You can use online tools like CPF Retirement Calculator or MoneySense Retirement Planner to get started.
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The second mistake that you can make is relying too much on CPF for your retirement income. CPF is a compulsory savings scheme that provides you with a monthly payout from age 65 onwards. However, CPF alone may not be enough to cover all your retirement needs.

According to CPF, the Basic Retirement Sum (BRS) for those who turn 55 in 2023 is S$93,0002. This means that if you have at least S$93,000 in your Retirement Account (RA) at age 55, you can expect to receive a monthly payout of about S$740 to S$800 from age 65 onwards2. This amount is based on the assumption that you have a property to live in and do not need to pay rent or mortgage.

However, if you don’t own a property or have other financial commitments, you may need more than the BRS to sustain your retirement lifestyle. According to the Department of Statistics, the average monthly household expenditure for retired households in Singapore was S$1,922 in 2017/20183. This means that if you rely solely on CPF, you may face a shortfall of more than S$1,000 every month.

Therefore, it’s important to supplement your CPF with other sources of income, such as personal savings, investments, annuities or part-time work. You can also top up your RA with cash or CPF savings to increase your monthly payout. Alternatively, you can defer your payout start age or withdraw less than the full amount each month to stretch your payouts longer.
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​The third mistake that you can make is not investing or investing poorly for your retirement. Investing is one of the best ways to grow your money and beat inflation over the long term. However, many Singaporeans are either not investing at all or investing in the wrong way.

According to a survey by BlackRock, only 39% of Singaporeans invest their savings in the financial markets4. The rest either keep their money in bank accounts or fixed deposits, which offer very low interest rates. This means that they are missing out on the opportunity to earn higher returns and compound their wealth over time.

On the other hand, some Singaporeans who do invest may be making poor investment decisions, such as:

• Chasing after hot tips or trends without doing proper research
• Putting all their eggs in one basket without diversifying their portfolio
• Buying high and selling low due to fear or greed
• Paying high fees or commissions that eat into their returns
• Not rebalancing their portfolio according to their risk profile and goals

These mistakes can result in losing money or underperforming the market. Therefore, it’s important to invest wisely and prudently for your retirement. You should:

• Have a clear investment objective and strategy that aligns with your retirement plan
• Invest regularly and consistently over the long term
• Choose low-cost and diversified investment products that suit your risk appetite and return expectations
• Review and adjust your portfolio periodically to ensure that it stays on track

If you’re not sure how to invest or need some guidance, you can seek professional advice from a licensed financial planner or use online platforms like MoneyOwl or Endowus that offer robo-advisory services.
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​The fourth mistake that you can make is not saving enough or saving too much for your retirement. Saving is the foundation of your retirement plan, as it determines how much you can invest and spend in the future. However, many Singaporeans are either saving too little or too much for their retirement.

According to a survey by OCBC, 56% of Singaporeans are not confident of saving enough for their retirement. The main reasons are:

• High cost of living
• Lack of financial discipline
• Unexpected expenses
• Insufficient income

These factors can make it hard to save enough for your retirement, especially if you start late or have competing financial priorities. Therefore, it’s important to save as much as you can and as early as you can for your retirement. You should:

• Set a realistic and achievable savings goal based on your retirement plan
• Track your income and expenses and create a budget that allows you to save more
• Automate your savings and treat them as a fixed expense
• Increase your savings rate whenever you get a pay raise or bonus
• Reduce your unnecessary spending and avoid lifestyle inflation

On the other hand, some Singaporeans may be saving too much for their retirement. This may sound like a good problem to have, but it can also have some drawbacks, such as:

• Sacrificing your current quality of life and happiness
• Missing out on life experiences and opportunities
• Being overly conservative and risk-averse with your investments
• Leaving behind a large estate that may be subject to taxes or disputes

These factors can make you feel stressed or regretful about your retirement, especially if you don’t have a clear purpose or passion to pursue. Therefore, it’s important to find a balance between saving for your future and living for the present. You should:

• Have a clear vision of what you want to do and achieve in your retirement
• Allocate some of your savings for discretionary spending and enjoyment
• Take calculated risks and seize opportunities that can enhance your wealth and well-being
• Plan ahead for your estate and legacy and communicate your wishes to your loved ones

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​The fifth mistake that you can make is not having adequate insurance coverage for your retirement. Insurance is a vital part of your retirement plan, as it protects you and your family from unforeseen events that can derail your finances. However, many Singaporeans are either underinsured or overinsured for their retirement.
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According to a study by LIA Singapore, the average protection gap for working adults in Singapore is S$462,000. This means that if they were to suffer from death, disability or critical illness, they would face a shortfall of S$462,000 in meeting their financial needs. The main reasons are:

• Lack of awareness or understanding of insurance products and benefits
• Lack of affordability or willingness to pay for insurance premiums
• Lack of regular review or update of insurance policies

These factors can leave you exposed to financial risks and liabilities in your retirement, especially if you have dependents or debts to take care of. Therefore, it’s important to have adequate insurance coverage for your retirement. You should:

• Assess your insurance needs and gaps based on your retirement plan
• Compare and choose insurance products that suit your budget and objectives
• Review and update your insurance policies regularly or when there are changes in your life circumstances

On the other hand, some Singaporeans may be overinsured for their retirement. This may happen if they buy too many or unnecessary insurance policies that overlap or exceed their needs. This can result in wasting money on excessive premiums that could be better used for other purposes. Therefore, it’s important to avoid being overinsured for your retirement. You should:

• Consolidate and simplify your insurance portfolio by eliminating duplicate or redundant policies
• Optimize and customize your insurance coverage by adjusting the sum assured or riders according to your needs
• Evaluate and terminate your insurance policies if they no longer serve your goals or offer value for money

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The sixth mistake that you can make is not taking care of your health for your retirement. Health is wealth, as the saying goes, and this is especially true in your retirement. Your health affects not only your longevity but also your quality of life and happiness in your golden years. However, many Singaporeans are not taking care of their health for their retirement.
According to a survey by Prudential, 60% of Singaporeans are worried about their health in retirement. The main reasons are:

• Poor diet and lifestyle habits
• Lack of exercise and physical activity
• Stress
• Chronic or acute diseases or conditions

These factors can compromise your health and well-being in your retirement, and also increase your medical expenses and insurance premiums. Therefore, it’s important to take care of your health for your retirement. You should:

• Eat a balanced and nutritious diet that meets your dietary needs and preferences
• Exercise regularly and moderately to maintain your physical fitness and strength
• Manage your stress levels and practice relaxation techniques
• Go for regular health screenings and check-ups to detect and prevent any potential issues
• Follow your doctor’s advice and medication if you have any existing or diagnosed conditions

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The seventh mistake that you can make is not having a social network for your retirement. Social network refers to the people that you interact with and care about, such as your family, friends, colleagues, neighbours, community members, etc. Having a social network is crucial for your retirement, as it provides you with emotional support, companionship, engagement and meaning. However, many Singaporeans are not having a social network for their retirement.

According to a survey by NTUC Income, 41% of Singaporeans are concerned about being lonely or isolated in retirement. The main reasons are:

• Losing contact or connection with their co-workers or peers after leaving the workforce
• Having fewer or no opportunities to meet new people or make new friends
• Living alone or away from their family members or relatives
• Having different interests or hobbies from their existing friends or acquaintances

These factors can lead to loneliness or isolation in your retirement, which can negatively affect your mental health and happiness. Therefore, it’s important to have a social network for your retirement. You should:

• Maintain and strengthen your relationships with your existing family members and friends
• Reach out and reconnect with your old friends or classmates that you have lost touch with
• Join or start a club, group or activity that matches your interests or passions
• Volunteer or contribute to a cause or organisation that you care about
• Be friendly and open-minded to new people that you encounter or interact with

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The eighth and final mistake that you can make is not having a purpose for your retirement. Purpose refers to the reason why you wake up in the morning and what you want to do with your life. Having a purpose is essential for your retirement, as it gives you direction, motivation, fulfilment and satisfaction. However, many Singaporeans are not having a purpose for their retirement.

According to a survey by AIA Singapore, 51% of Singaporeans are unsure of what they want to do in retirement. The main reasons are:

• Having no clear goals or plans for their retirement
• Having no hobbies or passions that they enjoy or pursue
• Having no skills or talents that they can use or develop
• Having no dreams or aspirations that they can achieve or realise

These factors can make you feel bored, aimless, restless or unhappy in your retirement, which can also affect your physical and mental health. Therefore, it’s important to have a purpose for your retirement. You should:

• Discover and define what makes you happy and fulfilled in life
• Set and pursue SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for your retirement
• Learn and try new things that challenge and excite you
• Share and teach what you know and love to others who can benefit from it
• Celebrate and appreciate what you have and what you have done

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​Retirement is often portrayed as a golden period in life. However, it can present unexpected challenges, especially within a relationship. In this detailed examination, we will explore why Sandra's husband's retirement is driving her crazy, providing valuable insights for couples approaching this new stage.
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​1. Free Time and Lifestyle Changes
Retirement brings about a significant shift in daily routines. For Sandra, her husband's newfound free time led to habits she didn't enjoy, like excessive TV watching or playing video games. This change in daily lifestyle patterns can disrupt a relationship's equilibrium, requiring adaptation and negotiation.

Here are some ways that retirement can change daily routines:

• Less structure. When people are working, their days are typically structured around their job. They wake up at a certain time, go to work, come home, eat dinner, and go to bed. Retirement can mean a loss of this structure, as people have more free time to fill. This can be a challenge for couples who are used to having a lot of shared activities, as they may now have to negotiate how to spend their time.
• More time together. Retirement can also mean that couples have more time together. This can be a great thing, but it can also be challenging if couples aren't used to spending that much time together. They may need to find new ways to connect and communicate, and they may need to learn to compromise on how they spend their time.
• Changes in interests. Retirement can also lead to changes in interests. People may have more time to pursue hobbies that they didn't have time for when they were working. This can be a positive thing, but it can also lead to conflict if couples have different interests. They may need to find ways to support each other's interests, even if they don't share them.

In Sandra's case, her husband's newfound free time led to habits she didn't enjoy, like excessive TV watching or playing video games. This change in daily lifestyle patterns disrupted the equilibrium of their relationship. Sandra felt like she was spending more time alone, and she was frustrated by her husband's lack of interest in doing things together.

Sandra and her husband needed to have a conversation about how his retirement was affecting their relationship. They needed to negotiate how they were going to spend their time, and they needed to find ways to compromise on their interests. Sandra also needed to be patient with her husband, as he was adjusting to a new phase of life.

2. Motivation and Responsibility Shifts
Retirement can be a time of great change and adjustment. People who have spent their lives working may find themselves with a lot of free time and a loss of structure. This can lead to a drop in motivation, as people may no longer feel like they have a purpose or a sense of accomplishment.

In Sandra's case, her husband's drop in motivation was evident in his decreased willingness to help around the house or handle responsibilities. He may have felt like he no longer had to contribute to the household, as he was no longer bringing in a paycheck. He may have also felt like he was no longer needed or valued.

This shift in behavior can be difficult for couples to adjust to. Sandra may have felt like she was carrying the weight of the household on her own, and she may have felt resentful of her husband's lack of help. She may have also felt like she was losing her connection with him, as they were no longer spending time together or doing things together.

It's important for couples to recognize and address these shifts in behavior as early as possible. If left unaddressed, they can lead to resentment, conflict, and even divorce.

Here are some tips for couples who are dealing with a retiree's drop in motivation:

• Talk about it. The first step is to talk to your partner about how their behavior is affecting you. Be honest about how you're feeling, and listen to their perspective.
• Offer support. It's important to offer your partner support during this time. Let them know that you're there for them, and that you believe in them.
• Help them find a new sense of purpose. Retirement can be a great time to explore new hobbies and interests. Help your partner find something that they're passionate about, and that will give them a sense of purpose.
• Set realistic expectations. It's important to set realistic expectations for your partner. They may not be able to jump right back into the swing of things after retirement. Give them time to adjust, and be patient with them.
• Seek professional help if needed. If your partner's drop in motivation is severe, or if it's causing a significant amount of conflict in your relationship, it may be helpful to seek professional help. A therapist can help your partner develop coping strategies and address any underlying issues.

By recognizing and addressing these shifts in behavior early on, couples can maintain a harmonious living environment during retirement.

3. Emotional Changes and Patience
​Retirement can be a time of great change and adjustment, both emotionally and physically. People who have spent their lives working may find themselves with a lot of free time and a loss of structure. This can lead to a variety of emotional changes, including:

• Irritability: Retirement can be a time of great uncertainty and stress, which can lead to irritability. Retirees may be frustrated with their new lack of structure or purpose, or they may be worried about their finances.
• Impatience: Retirees may also become more impatient, as they may not have as much time to do the things they want to do. They may also be impatient with others, as they may feel like they're not moving fast enough.
• Depression: Retirement can also lead to depression, as retirees may feel like they've lost their identity or purpose. They may also feel isolated or lonely, as they may not have as much social interaction as they used to.
• Anxiety: Retirees may also experience anxiety, as they may be worried about their finances, their health, or their future. They may also be worried about how they're going to fill their time in retirement.

In Sandra's case, her husband's irritability and impatience were likely due to the emotional changes he was experiencing as a result of retirement. He may have been feeling frustrated with his new lack of structure or purpose, or he may have been worried about his finances. He may also have been feeling isolated or lonely, as he may not have had as much social interaction as he used to.​

1. Open Communication
Couples must communicate openly and honestly about their expectations for retirement. By discussing interests, routines, and responsibilities in advance, many conflicts can be avoided or minimized.

2. Flexibility and Compromise
Adapting to retirement requires flexibility and willingness to compromise. Both partners must be prepared to adjust their expectations and find common ground to enjoy this new phase together.

3. Professional Assistance
If couples find themselves struggling, professional assistance through therapy can help. Therapists offer neutral perspectives and practical guidance on improving communication, resolving conflicts, and enhancing intimacy.
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Retirement should be a joyful and relaxing period, but it can be fraught with unexpected challenges. Sandra's story offers valuable lessons in navigating these difficulties. By being proactive and open in communication, willing to compromise, and seeking professional help if needed, couples can create a fulfilling retirement experience.

The insights offered here are not just theoretical musings but actionable strategies based on real-life experiences. They serve as a guide for couples approaching retirement, ensuring that this transition is a source of joy rather than frustration.
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For those looking to delve deeper into the subject, additional resources and tools can be found on websites like Sixty and Me, tailored to assist women over 60 in living happy, healthy, and financially secure lives.

Singapore, the prosperous city-state known for its high standard of living, presents a unique environment for retirees. But what does retirement on a modest budget in Singapore look like? We sought the insights of three retirees, living on $1,000-$2,000 a month, to reveal how they navigate this fascinating world.

​Mr. Tan, a 65-year-old retiree, had a previous career as an engineer. Opting for early retirement at 60, he planned to spend more time with his mother. Mr. Tan and his wife live in a three-room flat in Singapore's eastern part. They run their household on approximately $2,000 a month, covering basic expenses such as food, utilities, transport, and medical bills.

Careful planning and discipline are central to living on a reduced income. For instance, Mr. Tan uses an app to track his spending and refrain from unnecessary purchases. Despite living on a budget, he enjoys a rich and fulfilling life. His secret? Engaging in cost-effective activities that bring joy.

​A keen traveller, Mr. Tan and his wife have visited exotic destinations like Siberia, Mongolia, Nepal, and Vietnam. The strategy is to spend less by doing research online instead of hiring a tour guide, and booking flights and accommodations early to get the best deals.

Besides travelling, staying active and learning keep him young at heart. Regular exercises such as jogging, swimming, and playing badminton help Mr. Tan maintain his health. Meanwhile, reading books, watching movies, and playing games on his tablet keeps his mind sharp and entertained.

​Another retiree living an active lifestyle is Ms. Lee, a 68-year-old former airport firefighter. With a monthly pension of about $1,500, Ms. Lee enjoys her retirement, participating in physical activities like hiking, cycling, and kayaking.

One of her favorite retirement activities is volunteering at organizations that aid the elderly, disabled, or underprivileged. She advises that retirees should strive to balance work and play, maintain an active lifestyle, and prioritize both physical and mental health.

​Mr. Lim, a 70-year-old former taxi driver, lives with his wife in a four-room flat in the northern part of Singapore. His monthly income of $2,000 comes from his Central Provident Fund, investments, and his part-time job as a security guard. Despite the humble means, he finds fulfillment in his retired life.

He enjoys spending time with his grandchildren, going on walks in the park, watching TV shows, and playing mahjong with his friends. Once or twice a year, he travels to nearby countries like Malaysia or Indonesia, funding these trips with savings or contributions from his children.

Mr. Lim advises future retirees to start saving and investing early, diversify income sources, and live within their means. His mantra is that retirement is not about how much money you have, but how well you manage it.

​These stories from Mr. Tan, Ms. Lee, and Mr. Lim illustrate that a fulfilling retirement on a modest budget is achievable in Singapore. All it requires is careful planning, wise saving, and prudent living. A happy retirement is not about how much money you have, but rather, how you use it to live a fulfilling life.