“Live long and prosper!” is more than just a catchy phrase uttered alongside the iconic Vulcan salute in the Star Trek series. I’d say that those four words are becoming increasingly relevant especially for Singaporeans, whose average life expectancy has steadily risen over the past decade¹. While living longer is cause for celebration, it’s just as important to live well. A prosperous life begins with meeting your financial needs in the present, securing your retirement, while building healthy habits along the way. So, I rounded up four simple rules to help you progress towards a brighter future from today.

The Rule of 72

According to The Hitchhiker’s Guide to the Galaxy, the answer to the ultimate question of life, the universe and everything might be 42 but if you’re looking to double your investments, look to the Rule of 72. This handy financial principle helps you estimate how long it will take to double the money you invested by dividing 72 by the annual rate of return.

Here’s an example using the Singlife Account. Imagine you make a S$10,000 deposit. When you divide 72 by 4.5 the plan’s annual interest rate (4.5% including bonus returns at the time of writing this article) – you’ll get 16. While you’ll start earning interest right away,  it’ll take approximately 16 years for your initial investment to double and grow to S$20,000. It may seem like a long time, but aside from the duration it takes for your investment to double, there are other factors at play when growing your money. In the case of the Singlife Account for example, your savings are capital guaranteed. So, unlike riskier options such as riding the stock market, you won’t need to worry about losing your initial investment. With no fees or hidden charges and the flexibility to withdraw your funds anytime, the Singlife Account is an ideal option for building an emergency fund for a rainy day.

Do note that the Rule of 72 is only applicable to investment solutions that leverage compound interest. It can also be used to calculate the impact of inflation by showing how long it takes for the value of money to halve. For instance, when it’s applied to Singapore’s 2023 headline inflation rate of 4.8%², one can assume that the purchasing power of the Singapore dollar could be halved in just 15 years (72 ÷ 4.8 = 15), i.e. by 2038. Inflation rates may rise and fall, but saving today builds the financial resilience needed to stay ahead of the rising cost of living.

The 4% rule for retirement

With some Singaporeans looking to retire by 45, the need for proper retirement planning is becoming more important than ever. While everyone’s dream retirement might look different, the 4% rule suggests that you should be able to withdraw 4% of your retirement funds from the first year after you retire and take that dollar amount, adjusted for inflation, every year after for approximately 30 years.

Here’s an example of how it works if an individual were to retire at 65 in 2025. To achieve monthly payouts of S$3,000 during retirement, let's adjust the calculations with the CPF Full Retirement Sum (FRS) and the 4% rule in mind:

Target: S$3,000 per Month

• Annual Income Target: S$3,000 × 12 = S$36,000 per year
• Total Savings Needed (4% Rule): S$36,000 ÷ 0.04 = S$900,000 (for withdrawals over 30 years)

CPF Contribution (via FRS)

• With the CPF FRS of S$213,000, estimated payouts from when you turn 65 are approximately S$1,860 per month, or S$22,320 annually.
• Shortfall: S$36,000 - S$22,320 = S$13,680 annually, or S$1,140 per month.

Savings Gap: S$900,000 - S$213,000 = S$687,000

Note: The figures above are illustrative. Actual CPF LIFE payouts depend on various factors, including the CPF LIFE plan chosen and prevailing interest rates. It's advisable to consult with a financial adviser representative to tailor a retirement plan suited to your specific needs.

To address the shortfall, a retirement plan like Singlife Flexi Retirement II can help provide the remaining S$1,140 in guaranteed monthly payouts to meet the targeted monthly withdrawals of S$3,000 If you start planning for retirement early, you can opt for a longer Accumulation Period (up to 40 years) after completing your premium payments. During this growth phase, your plan continues to build cash value and earn potential bonuses, giving you the opportunity to exceed your initial S$3,000 target by the time your payouts begin. Best of all, you can customise the premium payment period to match your working years, and your premiums come with 100% capital guarantee, ensuring your nest egg remains secure.

The 10-3-2-1 sleep rule

Living in the most fatigued country in the world³ means we need all the rest we can get. Before you go down the rabbit hole of supplements and sleep aids why not try the 10-3-2-1 sleep rule for a more natural bedtime ritual?

10 hours before bed – No more caffeine

While it takes only 15 minutes to start feeling the energising effects of your cuppa, caffeine may not completely clear from your body until after 10 hours. You can still start your day with your favourite coffee or tea but aim to cut off all caffeine by noon. Make the switch to water or fruit teas in the evening to relax and prepare your body for sleep.

3 hours before bed – No more food

No one likes to go to bed feeling bloated. Eating at least three hours before you turn in gives your body time to digest the meal. Including foods like dark leafy greens and avocado which are high in magnesium might also help you fall asleep faster. If you’re still feeling a tad full, why not take an evening stroll to burn a couple calories while stimulating your digestive system?

2 hours before bed – No more work or stressful activities

A restful body begins with a rested mind. Establish a cue transition from your brain’s work mode to relaxation. This cue can be something simple like looking out the window on the bus ride home from work or closing your eyes and taking three deep breaths. Setting work life boundaries might spare you some sleepless nights tossing in bed over office drama.

1 hour before bed – No more screens

While it might be tempting to doomscroll or binge on the latest TV drama late into the night, excessive screen time kills your bedtime vibe. Blue light from screens reduces the natural production of melatonin, a hormone that gets your body ready for sleep⁴. Your brain is also likely to be overstimulated from watching content that is fast paced or shock inducing like action flicks and horror movies. Make your bedroom a screen-free zone and swap out these harmful activities with calming ones. My personal favourite is taking a nice warm shower before snuggling up in bed with a good book.

The habit stacking rule

Coined by James Clear, the author of Atomic Habits, habit stacking is a technique that helps you build new habits by attaching them to existing ones. For example, if you brush your teeth right after your alarm goes off, try adding a minute of meditative breathing right after brushing instead of rushing on to your next task. This technique hijacks your existing neural networks of everyday routines to form new habits without the need to summon your collective willpower. Just remember to start small with things that take two minutes or less, so it’s more achievable.

You can even use habit stacking to discourage negative habits. Going back to the 10-3-2-1 rule, if you notice yourself endlessly scrolling through your TikTok For You page around bedtime, try tuning in to a mindful podcast instead. That way you’re technically still on your phone but doing something more productive that’s less likely to harm your sleep.

Conclusion: Aim to be 1% better every day

These rules might seem easy to understand but putting them into practice might take time. Be kind to yourself and embrace the process knowing that the benefits which can last a lifetime are well worth it.

^Notes

^{1. Source: The Straits Times, “Life expectancy of Singapore population rose in last decade but fell during Covid-19”, accessed on 6 January 2025.}

^{2. Source: The Business Times, “Singapore’s headline inflation averages 4.8% in 2023, core inflation at 4.2%”, accessed on 6 January 2025.}

^{3. Source: Channel News Asia, “Singapore is 'most fatigued' country in the world – and we’re tired of it”, accessed on 6 January 2025.}

^{4. Source: The Sleep Foundation, “How electronics affect sleep”, accessed on 6 January 2025.}

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