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Are you a novice, moderate or experienced retirement planner? Take this quiz and find out

Retirement planning: How well prepared are you?

When planning for retirement, you are never too young to start. The sooner you have a retirement plan in place, the more likely you are to achieve the post-retirement lifestyle you deserve. You need to preserve your money to build a corpus that will stretch your money and last over the length of your retirement. Take our quiz to find out how prepared you are for your golden years.

  1. Do you have a retirement plan?

A. Really? I’m too young to think about retirement now

B. I don’t worry too much and save money when I can

C. Yes, I have a plan

Expert Tip! You should have a retirement plan in place regardless of your age. Putting aside a small portion of your income can make a huge difference to your retirement nest egg.

  1. How much money do you think you’ll need for retirement?

A. $200,000

B. $400,000

C. $600,000

Expert tip! Retirement age in Singapore is 62, and life expectancy is 83.1 years.

That means, on average, you’ll need enough money to fund 21 years of living expenses. Do your math or simply use our retirement calculator to determine the amount you need for post-retirement life.

  1. What is your investment risk profile?

Your willingness to take risk determines your risk profile. Broadly, your investment risk appetite falls into three categories: aggressive, moderate and conservative.

A. Aggressive – You seek to achieve significant capital growth on your investments, and you are willing to take significantly high levels of investment risk.

B. Moderate – You seek to achieve a moderate level of capital growth on your investments, and you are willing to accept moderate levels of investment risk over the medium and long term (up to three years).

C. Conservative – You seek to achieve higher than deposit rate returns and to protect your capital from inflation. You are willing to accept very low levels of investment risk over the medium term (up to two years).

Expert tip! When you’re young, you may want to consider taking an aggressive investment approach. This comes with greater risk but offers better returns, and you have plenty of time to recover in the case of market downturns. However, as you move closer to retirement age, consider switching to a more conservative approach.

4.What percentage of your gross salary do you contribute to your Central Provident Fund (CPF) account, over and above the mandatory contribution?

A. 0-5%

B. 5-10%

C. More than 10%

Expert tip! To make the most out of your CPF, you can consider making use of the Retirement Sum Topping-up (RSTU) Scheme and making CPF voluntary contributions. Personal  contributions to your retirement savings under the RSTU Scheme are eligible for tax relief of as much as S$7,000 per calendar year.

5.How much money do you currently have in your Ordinary Account (OA) and Special Account (SA)?

A. I don’t know

B. Less than S$20,000 in OA; less than S$40,000 in SA

C. More than S$20,000 in OA; more than S$40,000 in SA

Expert tip! If you have more than S$20,000 in your OA,  more than S$40,000 in your SA, or both, you can choose to invest your savings using the CPF Investment Scheme (CPFIS) to enhance your retirement portfolio. The other way to make your savings work harder is by transferring the money from your OA to your SA. In your SA, your savings will earn a guaranteed 4 per cent, while savings in your OA earns only a guaranteed 2.5 per cent.

By contributing as little as $100 a month to your SA or Retirement Account (RA) at an interest rate of up to 5 per cent per year, you’ll grow your nest egg by more than $24,000 in 15 years.

6.What percentage of your gross salary do you set aside for the CPF Supplementary Retirement Scheme (SRS) account?

A. 0-5%

B. 5-10%

C. More than 10%

Expert tip! SRS contributions complement the CPF retirement sum. An SRS account in Singapore offers dual benefits — contributions to SRS provide you with tax relief, plus investment returns from the account are also tax-free. And if you draw on the money in your account, only 50 per cent of the withdrawals from SRS are taxable at retirement. But remember, the money is locked in, as withdrawals from an SRS account are tied to the statutory retirement age of 62 years. The annual SRS contribution cap is currently set at $15,300 for Singapore citizens and permanent residents, and $35,700 for foreigners. This is a good investment vehicle for above-average and high-income earners who can reap the benefit of tax relief on SRS account interest. For eligible customers, many banks also offer SRS account promotions from time to time. You can also invest SRS funds for other approved investments including stocks, REITs, ETFs and bonds.

7.What types of long-term savings plans or investments do you have in place outside your CPF and SRS?

A. None

B. A term deposit or savings account

C. A diversified investment portfolio

Expert tip! Diversification is key to building a strong investment portfolio. A diversified portfolio comprises a range of asset classes, including cash, bonds, stocks and property. Get your money to work for you by using a diversified plan as per your risk appetite, income and age. The saying, “Don’t put all of your eggs in one basket”, could not apply more than when  planning for your  retirement.

Mostly As – The Novice Planner

Okay, maybe you’ve been too busy enjoying life to start thinking about retirement. But it’s never too soon, or too late, to start planning financially for your future. Start making personal contributions to your CPF and consider participating in the CPFIS when you have the necessary funds in your OA and SA. In the current economic environment, setting aside some extra money for savings may seem challenging. Don’t worry. The most important factor is to take that first step. Get your investment portfolio started so you can take advantage of compounding interest. Speak to one of Standard Chartered’s expert advisors about your retirement planning options. 

*Remember: this quiz is just for fun. If you would like to have a better understanding of your retirement planning options, we can help to arrange a session with one of our financial advisors, who will help you identify your investment profile and recommend the types of retirement planning options available. Chat with us now

Mostly Bs – The Moderate Planner

You understand how much money you’ll need for retirement and have some solid plans in place to achieve your goals. You’re likely already making contributions to your CPF and may also be participating in the CPFIS. However, there’s still room to grow your money. Consider diverting some funds into the SRS account, and focus on diversifying your investment portfolio to supplement your CPF savings. To find out how to optimise your retirement plan, speak to a member of our team today.

*Remember, this quiz is just for fun. Chat with us now to connect to a financial advisor, who can advise you on your retirement planning options.

Mostly Cs – The Experienced Planner

Congratulations! You’re on track to enjoy a secure and comfortable retirement. Keep your CPF and SRS contributions high as you approach retirement age, and keep a close eye on your diversified investment portfolio to ensure you’re limiting your risk. If you’re looking for fresh ideas to maximise your savings and investment portfolio, speak to a member of our team today.

*Remember, this quiz is just for fun. Chat with us now to connect to a financial advisor who can advise you on your retirement planning options.

This quiz is brought to you by Standard Chartered Bank (Singapore) Limited. All information provided is for informational purposes only.

Disclaimer:

This article is for general information only and it does not constitute an offer, recommendation or solicitation of an offer to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This article has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice or an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person or class of persons. You should seek advice from a licensed or an exempt financial adviser on the suitability of a product for you, taking into account these factors before making a commitment to purchase any product or invest in an investment. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether the product or service described herein is suitable for you. You are fully responsible for your investment decision, including whether the investment is suitable for you. The products/services involved are not principal-protected and you may lose all or part of your original investment amount. Standard Chartered Bank (Singapore) Limited will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of information in this article. Investment products are not deposits and each of the investment products mentioned do not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners’ Protection Schemes Act 2012, Rev. Ed. Cap 77B.