Insurance

The Secret To Retirement Happiness

You've worked your whole life waiting for your retirement day, but can you guarantee that your retirement will be filled with joy?

  • iFAST Insurance Team
  • |
  • Published on 03 Aug 2018

What is the secret to a long and happy retirement? Is it the accumulation of assets, a globetrotting life, being free from all worries or receiving an income for life? While a combination of the above may be able to provide retirement satisfaction, would you like to know the definite way to enjoying a happy retirement? In this article, we explain 3 concepts you must know for a happy retirement.

(See "Want To Retire In Your 50s? Here's The Timeline To Follow")

#1 Assets matter less

Market volatility brings about uncertainty to your assets making what is worth $1 million now valued differently 10 years later. This is because fluctuations in the market could affect the valuation of your assets making it worth more in good markets or less if markets were to underperform. This could result in those reliant on their assets to be stressed out over economic uncertainty and the concern of depleted savings.

However, while assets may fluctuate in value, income would not thus resulting in people who receive pensions likely to be happier as a result of income certainty.1 A steady stream of income also eliminates the concerns of outliving your savings thus allowing you to fully embrace and enjoy your retirement years.

While all Singaporeans receive lifetime pay-outs through CPF Life, these pay-outs average at S$700-800 and may therefore be insufficient for your retirement.2 As such, you may wish to supplement this with other financial tools for a higher guaranteed income in retirement.

(See "The Basic Guide To Financial Planning For New Parents")

#2 Retirement satisfaction is tied to financial certainty

Retirement satisfaction has been found to be the highest among those with annuitized incomes due to the financial security offered by a guaranteed income.3 This certainty of income reassures individuals with the knowledge that they would never run out of money and/or outlive their savings. To receive a guaranteed lifetime income, individuals may wish to consider an annuity policy.

Annuities are a type of life insurance generally used for retirement planning. Individuals can choose to either make a one-off payment or regular premium payments for a fixed number of years with pay-outs commencing at retirement age. This lifetime stream of income provides financial predictability thus making it a reliable option for retirement planning. Moreover, as studies have shown that all retirees are happier with a guaranteed income regardless of their background or financial situation, it further emphasizes the impact of lifetime income on retirement happiness.

Available Annuity Plans:

Etiqa Insurance - ePREMIER eternity presto

Manulife - RetireReady Plus

NTUC Income - Guaranteed Life Annuity, Sail, VivoCash

Tokio Marine - TM Retirement GIO,TM Retirement Paycheck Life, TM Retirement Secure, TM Retirement SP

(See "Here's How Money Can Buy You Happiness")

#3 Alleviate longevity risk

77.95 years - this was the average life expectancy of Singaporeans in year 2000.4 Fast forward 18 years however, and the life expectancy of Singaporeans have now increased to 83.1 years.5 With the life expectancy of Singaporeans always increasing, this puts us in danger of longevity risk as we may live longer than expected thus resulting in an exhaustion of our retirement savings. This longevity risk could also result in an unhappier retirement as we may constantly be stressed about when and if our money would run out. As this anxiety may begin many years prior to the unfortunate event, it could then result in an unfulfilling retirement where you are afraid to spend due to the fear of having insufficient funds.

However, such worries would be eliminated with a guaranteed lifetime income. This predictability of finances provides a sense of security which in turn allows you to lead a longer and happier life.6

(See "Do You Really Need Early Critical Illness Insurance?")

To Start Planning For Your Retirement


Contact Our Advisers Here >

Or email us at advisory@fundsupermart.com.


Available Products on FSMOne Insurance

Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment


from Etiqa Insurance, Manulife, NTUC Income and Tokio Marine Life Insurance


*Please check with our advisory team if the product you want is available on FSMOne Insurance

1Source: http://crr.bc.edu/wp-content/uploads/2005/02/ib_28.pdf


2Source: https://www.cpf.gov.sg/members/schemes/schemes/retirement/cpf-life


3Source: https://www.towerswatson.com/en/insights/newsletters/americas/insider/2012/annuities-and-retirement-happiness


4Source: https://data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=SG


5Source: https://www.todayonline.com/singapore/singapore-3rd-world-life-expectancy-who-report


6Source: http://online.wsj.com/ad/article/jh_secret_happy_retirement.html


Interested to learn more? Check out these articles:

Comparing Annuity Policies

Are These Myths About Motor Insurance True?

8 Countries Singaporeans Can't Travel To Without A Visa

Insurance, Is It Always The More The Merrier?

3 Reasons To Use Your SRS For Annuities

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