Ageing in Singapore is becoming increasingly challenging as the country’s standards of living rise. Singaporeans are living longer—today, 1 in 2 Singaporeans aged 65 will live beyond 85, and 1 in 3 will live beyond 90! This means it is essential to reconsider your retirement planning and address the risks associated with increased longevity.
Moreover, Singapore is gradually raising its official retirement age from 63 years (in 2024) to 65 by 2030, with the re-employment age increasing from 68 to 70 over the same period to support an ageing workforce and economy. The average life expectancy in Singapore is about 83 years, meaning retirees may require funds to last 20 or more years.
According to HSBC’s 2025 Affluent Investor Snapshot, Singaporeans aim to accumulate retirement savings of approximately US$1.39 million (~S$1.8 million) to comfortably cover rising healthcare and living costs.
You must take responsibility for your own retirement planning and not rely solely on your children. By 2030, there will be just 2.4 working-age adults supporting each senior aged 65 and above—a steep decline from 13.5 working-age residents per elderly person in 1970. Without proper planning, this will place a heavy burden on the nation and working adults, including your children.
Children are no longer a reliable ‘insurance’ for old age. Changes in family structures and demographic shifts mean many Singaporeans cannot count on family support as much as before. Those in the ‘sandwiched generation’ understand well the challenge of caring for ageing parents while raising children. As a result, many are proactively planning their own retirements to prevent passing on similar worries to their children.
Government schemes such as CPF Life and CPF provide a foundation for retirement funds but are unlikely to fully sustain your lifestyle. Given the increasing prevalence of age-related illnesses, it is almost certain you will need more than CPF to support your retirement years.
So, how can you adequately prepare for retirement in Singapore?
Ageing in Singapore – How to Be Prepared For Your Retirement
These trends mean that it is very important for you to plan your finances so that you are prepared and do not have to outlive your retirement savings. Think about how you want to spend your retirement years, and then start setting aside a lump sum every month to be invested. This can be a mixture of funds such as REITS, ETFs, stocks, property trusts, bonds, insurance policies or some good savings plans. It’s never too early to start preparing for retirement. Even in your 20s, you are too late. Do it as early as possible so that your money will have more time to be compounded and grow. Use an online retirement planning calendar if you must to help you on the journey.
Insurance Life and Savings Plans
It is vital to have at least one or two life and savings plans per person to cope with ageing in Singapore. If you are married, this becomes even more critical as you don’t want your spouse or children left without financial support if anything happens to you.
A life insurance plan offers protection in the event of total permanent disability (TPD) or death. While term insurance covers this, life insurance plans also provide regular savings and some can be converted into annuities for retirement.
An endowment or savings policy is also essential. It pays a lump sum after a set term or upon death. Maturities are typically 10, 15, or 20 years, up to a certain age limit. These policies cover TPD or death as well.
Including such policies in your portfolio ensures peace of mind for you and your family and supports your retirement and ageing plans in Singapore.
Exchange Traded Funds (ETFs)
Exchange-traded funds (ETFs) are investment funds listed and traded on stock exchanges. Your money is pooled with other investors and managed based on the ETF’s objectives.
ETFs usually aim to replicate the returns of a specific index, such as a stock or commodity index. Passive management means fees are generally lower compared to actively managed funds.
ETFs can be cash-based or synthetic, the latter using derivatives.
Real Estate Investment Trusts (REITS)
A real estate investment trust (REIT) is a company that owns and typically operates income-producing real estate, including office buildings, apartments, warehouses, hospitals, shopping centers, hotels, and timberlands.
In Singapore, dividends from REITs are completely tax-free, meaning you keep 100% of your income. For example, earning S$10,000 annually in dividends means you keep every cent.
REITs typically yield between 5% and 8% annually, with dividends distributed quarterly or biannually. Singapore REITs performed well in 2018 and continued positive trends into 2019.
These high yields result from a legal requirement for REITs to distribute at least 90% of their taxable income each year as dividends, making them attractive for consistent income.
However, REIT share prices fluctuate like stocks. Beyond dividends, profits can be made by selling shares when prices rise, but losses are also possible. This trade-off is a key consideration.
REITS Exchange Traded Funds (ETFs)
Exchange-traded funds (ETFs) are traded on a stock exchange, just like REITs. One major difference between ETFs and REITs is that ETFs track a specific index. As a result, the returns of the ETFs would usually be the same as the underlying index, such as Nikko AM STC Asia REIT ETF, Phillip APAC SGX REIT ETF and Lion-Phillips S-REIT ETF, for instance.
Central Provident Funds (CPF)
Regarding CPF, you can consider making cash top-ups or transfers to your Special or Retirement account to earn attractive interest rates. Delaying monthly payouts until age 70 can increase CPF LIFE monthly payouts by up to 7% annually.
Medical and Disability Insurance
Ensure you are fully covered for illnesses and long-term disability care, as unexpected health events can quickly deplete your savings. See our guide on Careshield Life for more details.
No Kids — or Simply Don’t Want to Rely on Them for Retirement?
Maybe you don’t have children, or simply do not want to rely on them for retirement. Don’t worry, you’re certainly not alone. More Singaporeans are choosing to plan their own path to a secure, fulfilling retirement — on their own terms. Our local financial advisers (with over 10 years of experience) can help you make the most of your assets, so you can retire confidently, with no strings attached.
Ready to take control of your future? Email us at hello@vivacityasia.com — let’s start planning your independence.