4 things to consider when building your retirement nest egg

The key to successful retirement planning is to keep in mind the principle that it's never too early to start.

There also isn't a one-size-fits-all approach when it comes to retirement planning. There are a number of factors to consider, regardless of age.

Here are 4 factors of consideration when it comes to building a nest egg for your golden years: 

1. Time horizon

The accumulation period or time horizon – that is, how much time you have to save – should be one of the first things you consider.  The younger you start saving, the better. A longer accumulation period means there are more options available.

If you're starting late and the time horizon is short, you can look at plans with short premium term options, or consider lump sum investment plans.  With a short time horizon, capital preservation should be top of your agenda as there's less time to rebound from large losses.  Consider participating endowment plans from insurers that offer a capital guarantee, such as Singlife's MyRetirement which offers capital guarantees and guaranteed returns.¹ 

2. Risk appetite

If you prefer to take on a higher risk in exchange for a potentially higher return, you can consider investing with Singlife's unit trust platform, Navigator.  Unit trusts typically don't provide a capital guarantee but can offer higher returns in accordance to market performance, and has the benefit of liquidity.

Alternatively, you can consider investment-linked plans, such as Singlife's MyLifeInvest, which allows you to choose your policy duration, and provides the flexibility to increase or reduce contributions, do lump sum top-ups, or even take temporary breaks from your regular contributions². 

3. Payout mode

There are also various options available in the market to meet different preferences with regards to the mode of payout.  There are some who prefer a lump sum payout at their chosen retirement age, while others may prefer a savings tool that provides a monthly or annual payout over a set period of time. 

4. Affordability

Different savings and investment tools typically have different minimum commitment amounts.

For example, insurance endowment plans can start as low as S$100/month.  There are also lump sum tools available such as Singlife's MyIncomePlus that start with a minimum contribution of about S$23,000³, or fixed deposits which typically start from a minimum of S$5,000.

Whether you opt for a single premium payment or commit to a regular premium over the course of a few years largely depends on your financial commitments and cashflow needs.



¹ For Singlife's MyRetirement, capital is guaranteed at the selected Retirement Age, and returns are guaranteed only upon policy maturity.

² Please refer to the MyLifeInvest product brochures, available on singlife.com for more information.

³ Singlife's MyIncomePlus' minimum single premium contribution is S$23,825, which is calculated based on 10 years accumulation period and 10 years payout period with a Guaranteed Monthly Income of S$250 

Updated in : June 2017

Plan for your retirement today

Leave us your details and we'll be in touch to send you more information.

Thank you for your submission. 

Please enable javascript on your internet browser in order to use this form

By clicking "Submit", you consent to Singapore Life Ltd. (“Singlife”) and Singlife related group of companies contacting you to provide you with information concerning Singlife and Singlife related group of companies' products and services. You also consent to Singlife using, disclosing or transferring your personal data in this form to Singlife related group of companies, third party providers or intermediaries, whether located in Singapore or elsewhere, for the above purposes and for research, audit, regulatory and compliance purposes.

For details of Singlife's Data Protection Notice, please refer to www.singlife.com/pdpa. To withdraw your consent at any time, please call Singlife at +65 6827 9933.

One less thing to worry about

Subscribe to us for regular news updates, insights and tips on insurance, offers on products and services that’ll give you greater financial confidence.

Thank you for your submission. 

Please enable javascript on your internet browser in order to use this form

By clicking “Submit”, you consent to Singapore Life Ltd. (“Singlife”) and Singlife related companies contacting you to provide you with information concerning Singlife and Singlife related companies’ products and services and special offers which may be of interest to you.
For details of Singlife's Data Protection Policy, please refer to singlife.com/pdpa. To withdraw your consent at any time, please call Singlife at +65 6827 9933.

Important Information

Money Banter (the "Portal") is for general information only and does not take into account the specific investment objectives, financial situation, health condition and needs of any particular person. The contents of this Portal are intended merely for educational purposes and should not be construed as the giving of advice or the making of a recommendation. Nothing contained in this Portal shall constitute a distribution, an offer to sell or the solicitation of an offer to buy. We recommend that you discuss any specific matters with your financial adviser representative or legal adviser before making any decision. You are responsible for your own medical care, treatment and oversight, and any health-related content on this Portal, including, text, treatments, dosages, outcomes, charts, profiles, graphics, images, messages and forum postings are strictly information to promote general understanding of certain health topics only, do not constitute the providing of medical advice, and should not be relied upon as a substitute for professional medical advice, diagnosis or treatment. Always seek advice from a physician or other qualified health care provider regarding your medical condition or treatment and before undertaking a new health care regimen. This Portal may include information sourced from third parties and links to third party websites. We are not responsible for the accuracy or completeness of, and do not recommend or endorse such information or third party websites nor recommend or endorse any specific tests, physicians, products, procedures, opinions or other information. While we have taken reasonable care to ensure that the information on this Portal has been obtained from reliable sources and is correct at time of publishing, information may become outdated and opinions may change. Except to the extent prohibited by any law, we are not liable for any loss (including direct, indirect and consequential loss, loss of profits, loss or corruption of data or economic loss of any kind) that may result from the access or use of or reliance on the information on this Portal.  | Terms of Use | Privacy Policy

Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore.