budgeting

SINGAPORE – Even though mine is a dual-income household, money seems to flow out of my bank account faster than I would like. On top of the regular household bills and insurance premiums, there are also school fees and expenses for the children’s extracurricular activities, unforeseen doctor visits and so on.

The monthly outflows don’t include money for retirement planning and the proverbial rainy day.

The Sunday Times Invest team has run many articles with suggestions and tips on how to manage a budget: Pay yourself first, save and set aside money first so that you can spend the rest without guilt, put your money into pools, automate the savings and so on. They do work, and I employ some of these tips myself, such as automating payments and savings.

But one thing that has really helped me is taking steps to manage my monthly cash flow. There is no better visibility than running a balance sheet for the month, much like how entrepreneurs do it for their business. The financial quantum for businesses is obviously much bigger than for households, but there are certainly some nuggets of knowledge that can be applied.

Mr Gabriel Le Roux, founder and CEO of Primer, a fintech payment infrastructure provider, said there are “definitely similarities” between managing finances for a start-up and for his household.

“Both require prioritising, budgeting and having a clear sense of your long-term goals... I’ve learnt the value of keeping things flexible. Life (and markets) can be unpredictable, so whether it’s business or personal, it helps to build in buffers,” said Mr Le Roux, who has two young children.

He automates payments that do not need constant attention, and keeps a clear view of his cash flow. “It’s not about micromanaging every expense – it’s about building a system that works, and more importantly, one that can adapt as life evolves. Scalability matters, even in a personal context.”

Mr Le Roux added: “At a start-up, you’re making financial decisions with much larger implications and at a much faster pace. In your household, you can pause and reflect a bit more.”

Mr Andrew Tan, who has two daughters aged eight and five, divides the money in his bank account into different cash pots for his personal finances, much like what he does for his business, furniture store Atomi.

Having an emergency fund pot proved a lifesaver when his younger daughter had an allergy within a week of her birth. She had to be hospitalised three days after being discharged following her birth.

“It was a five-digit bill and she had no insurance for the first month of her birth, so this was an unforeseen cost and it was a cash outflow we had to pay,” he added.

Mobile financial platform YouTrip’s monthly operating expenses may run into the millions, but the mindset for managing the household finances is “surprisingly similar”, said co-founder and chief executive officer Caecilia Chu.

It’s about “thoughtful allocation, long-term value and intentional choices”, said the 42-year-old, who has two children aged 11 and nine.

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At its core, she said, managing both start-up and household finances comes down to setting “clear priorities and making deliberate trade-offs”.

“It’s about asking what matters most, and where does every dollar make the biggest impact? In the business, it could be a decision between expanding into a new market or doubling down on product innovation. At home, it might be choosing between a memorable family holiday or upgrading the living room TV – which, for the record, we still haven’t done. Both require discipline, but also a shared vision of what you’re working towards,” said Ms Chu.

Of course, keeping an eye on cash flow is just as important as building one’s savings or growing investments, said Ms Chu. It gives one the day-to-day clarity to ensure one’s financial choices align with what really matters, and she added that she has come to “value experiences with loved ones far more than material things”.

With the family’s packed schedules, there are only a few windows each year for them to get away for “meaningful family holidays”.

“So, we plan around those moments – we budget conservatively and prioritise saving for them, rather than spreading spending across less intentional purchases throughout the year,” she said. “To me, managing household finances isn’t just a numbers exercise. It’s about using money consciously to create the moments that truly matter.”

Credit cards and lines, and cash loans, when used responsibly, can help ease certain financial pressures faced by young families, such as housing upgrades, renovations and childcare costs, said Mr Vasu Menon, managing director of investment strategy at OCBC.

He stressed though, that these should only be used when they are absolutely necessary, and to tide oneself over in the short term while waiting for incoming funds to repay the loans in full, as interest rates on some of these credit facilities can be high. 

Consider the three A’s before borrowing, Mr Menon said:

Amount: Borrow only what is necessary, with a clear purpose.

Affordability: Ensure monthly repayments fit your budget.

Arrangement: Understand the terms, interest rates, and automate payments to avoid late fees.

For freelancers and gig workers, Atomi’s Mr Tan said there are “certain costs you can’t save on”, such as insurance and one’s regular contributions to your Central Provident Fund account.

This is especially important for freelancers and/or gig workers, or those who are their own boss and employee in a company – they would see about 37 per cent of their monthly income going to their CPF accounts as employers contribute 20 per cent, while employees contribute 17 per cent.

“Some take the easy way out and declare lower CPF contribution, because it takes a toll on the cash flow,” he said. “But don’t cut corners because you have to think about your house payments, Medi­Save, and the compounding interest that CPF will provide... The CPF contribution is an important discipline to undertake.”

Don’t lose sight of the bigger picture: Financial freedom

Managing the daily and monthly cash flow is one way to manage your finances, but the act of it may not grow your money. When the going gets tough, it helps to remind oneself why – to reach a point where you feel free financially, and to teach your children how to get there one day, too.

“Everyone is on this quest to unlock financial freedom, and while you’re on that journey, you save and save and save. Then you figure out how to amplify and invest... because having a salary alone does not make you rich,” said Ms Tjin Lee, whose luxury marketing agency Mercury Integrated was bought by Hong Kong-based marketing firm Gusto Collective in 2023.

“If you’re still at the stage where you’re growing your money to hit that amount in your head that you need to hit before you unlock financial freedom, then of course you need to prioritise prudent spending and saving. Everybody has this number, and it varies for all of us.”

For Ms Lee, who has found her financial freedom (she declined to say what her financial goal is, monetary-wise), her focus is to cultivate an entrepreneurial and wealth mindset for her two sons aged 12 and 10.

“As an entrepreneur, we focus on making money rather than saving money. If you spend all your time teaching your children how to save money instead of how to make money, then you’re focusing on scarcity instead of abundance. Of course, I think being prudent about spending, smart about your money and financial literacy are very important,” said the 51-year old.

Citing the present, when many in the developing and developed worlds are gig workers, and the future of jobs is changing rapidly, resulting in the difficulty of teaching future skills for “jobs that don’t exist yet”, Ms Lee said she focuses on asking what problems her children want to solve in the world when they grow up.

“So, with that in mind, I think about gearing them up to be entrepreneurial, or to lead,” she said. “And not to ask, what do you want to be when you grow up? Because that job won’t exist in the future.”

She practises financial planning with her sons by asking them to plan and budget for a two-week summer camp for others to attend, for example.

“I’ll ask them, how much do you think you can make from this camp? This is the budget you have and there are 50 children. How much do you have to spend on each kid and how much profit do you want to make? So we work backwards, and the financials come into play. It’s almost like a maths game.”

Ms Lee added: “It’s very different from just teaching. As children, they have no concept of money, right? I know some people think it’s crass to talk about money, but this is financial literacy. It’s important for kids to learn.”

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Ms Chu of YouTrip does a similar exercise with her children, as she and her husband value involving them in the budgeting process and helping them to understand decision-making and value creation from a young age.

“For instance, if we have a weekend budget, we ask them to ‘pitch’ their idea – whether it’s a visit to Rainforest Wild Asia or tickets to a local theatre performance. They’re encouraged to weigh the trade-offs, build their case, and reflect on what the experience means to them. It’s our way of raising mindful decision-makers, not just smart spenders,” she said.

And even when cash flow is tight, Mr Menon suggests starting retirement planning early.

“It may feel premature, but starting early – through CPF top-ups or disciplined investing – leverages the power of compounding. A small commitment today can grow into a meaningful nest egg tomorrow.”

retrench

SINGAPORE - Growing up, I was obsessed with collecting toys that came with Happy Meals.

Whenever my parents took me to a McDonald’s outlet, I looked forward to going home with a Hello Kitty plushie or a Transformers autobot.

For what I thought was a blissful period, my dad started adding a new toy to my collection almost every day.

I learnt only recently that I had got it completely wrong.

He had been retrenched. Not wanting to worry my mum, he continued to leave home as usual and spent the day at the library, often having lunch at McDonald’s, until he found a new job.

Unbeknownst to him, my mum knew about the ruse. She had tried to reach him in the office and was inadvertently told that he had lost his job.

I did not understand why my parents, who had a loving relationship, found it difficult to talk about retrenchment, until earlier this year.

That was when my then employer, an international media outlet, closed most of the roles in my Singapore-based division.

My colleagues and I were encouraged to apply for new positions that were made available under a restructuring process.

I had dialled into the meeting because I was on annual leave and thousands of miles away from home. Towards the end, we were asked if we had any questions.

I found myself with a jumble of thoughts and nothing to say.

I wandered around a museum and watched a ballet performance. All while feeling like I was going through the five stages of grief.

I kept it from my mum, not wanting to worry her.

In other conversations, I said I was feeling okay. I was determined to focus on the positives.

I would not feel the impact immediately, as I was expected at work for several more months.

I also had the opportunity to apply for roles within the company, and I knew I had a decent chance at them.

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Finally, I did not have large financial commitments. I did not have a mortgage or children.

Then the insecurities crept in, and these were much harder to talk about. I felt shame, even though we were told the restructuring was not based on performance.

I questioned if I was employable in an industry that I had spent a decade in.

I stacked myself up against my colleagues, many of whom were trying for roles in the restructuring, and external applicants.

I contended with how I would feel if I failed to get a role, and as importantly, how that would look. The optics bothered me and there was nothing I could do but sit with uncomfortable feelings.

I can only imagine what was running through my dad’s mind in the late 1990s, when retrenchment was a taboo subject.

He was the sole breadwinner supporting a mortgage, my mum and I, and with more at stake than existential thoughts and a bruised ego.

Retrenchment is viewed differently now. Just look at the LinkedIn networking platform, which is peppered with posts on job losses.

The responses are overwhelmingly positive, offering comfort and, more often than not, connections to a new gig.

As one retrenched worker put it: “The response from you all has been so supportive and genuinely encouraging that it almost makes a girl want to get laid off more often! Emphasis on the almost...”

In the current economic climate, with companies from Microsoft to the Bumble dating app announcing layoffs, people are using the platform to talk about the grief associated with losing a job.

I have benefited from this, as it reminds me that retrenchment is a relatively common experience.

But I could not find the words for a post, and having to engage in a public space felt like too much of a burden.

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Grief, however, had a way of reminding me that it needed some place to go. I was hypersensitive and erratic, and I knew I needed to accept that things would not be the same.

With the restructuring, I lost a job that I loved, which came with a range of functions. I lost colleagues, many of whom had become friends.

In choosing to leave the company, despite being offered roles, I gave up the prestige that comes with working for a global organisation.

Giving grief an airing looks like this to me. In the immediate aftermath of the restructuring, my colleagues and I spoke a lot, sharing our worries, encouragement and practical resources.

This grounded me during a challenging time when I was often working the early shift, and spending the afternoons and evenings at interviews.

I am seeing a counsellor, which was a benefit offered to affected staff. She has helped me to balance my identity as a journalist with the other things I value.

I told my loved ones about my struggles. I put aside thoughts of whether my feelings were valid and focused on what I knew I was carrying.

Somewhere along the way, I told my mum. “Never mind,” she said. “Remember to eat well or else you will have no energy.”

I learnt a big lesson. The stigma of retrenchment is nowhere as strong as my dad’s experience, but it still carries a sting.

During the process, I felt most comfortable keeping silent, thinking it was the best way to figure out the next steps. That silence magnified my inner turmoil. In crises, we are often our harshest judges.

We live in a world that I hope has become kinder to downturns, failures and messy feelings.

I don’t think I have grown more comfortable with putting my thoughts online. But I did not have to look far for support, with people who were willing to see me through a difficult season.

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Netherlands

When I close my eyes and think back to my childhood in the Netherlands, I am nine years old and a friend and I are cycling at top speed down our town’s high street, re-enacting the finish of the Tour de France.

He pulls a metre ahead of me and raises both arms in triumph for the imaginary cameras. Lord knows where our parents were.

A recent United Nations Children’s Fund (Unicef) report repeats the organisation’s usual finding that Dutch children are the happiest in the rich world. Unicef ranks the Netherlands No. 1 for mental health and No. 4 for physical health, though only a modest 11th for “skills”.

The country is a role model in an era when children internationally are becoming unhappier, more overweight and (academically at least) dumber. British kids report poor mental health, American kids have disastrous physical health, while Unicef’s report is littered with shocking nuggets, such as New Zealand’s youth suicide rate.

Given that mental health and obesity began worsening internationally in the early 1990s, Unicef doesn’t think phones or social media are the prime culprit. “Screen time is not the most useful indicator,” the report finds.

Qualities of a good childhood

So what makes a good childhood? And what can other countries learn from the Netherlands? So much starts with the bike. The Dutch built cycling infrastructure that allows kids to get around their neighbourhoods alone, safely.

On their bicycles, and in local playgrounds, parks and the country’s profusion of sports clubs (where I spent half my childhood), they get exercise, which Unicef says correlates with higher life satisfaction. Only 18 per cent of Dutch children are overweight, versus 42 per cent in the US.

The bike liberates kids from their parents and vice versa.

There are few Dutch “soccer mums” chauffeuring their kids around in sport utility vehicles all day. Yet Dutch kids speak to their parents often, something that Unicef thinks is “strongly positively associated with life satisfaction” and much less common in, say, Japan.

Crucially, Dutch parents have time to talk, because the country’s average work week is just 30 hours, the lowest of any rich nation (or, I suspect, of any society since our ancestors made the mistake of swopping leisurely hunter-gathering for back-breaking farming 12,000 years ago).

Dutch adults also have time to cook healthy family meals. Helpfully for communication, they tend to be non-judgmental pragmatists on matters like sex and drugs. Kids just don’t have much to rebel against.

My Tour de France friend still frequently sees his mother, now 92. Talking to parents and going around the neighbourhood, Dutch children learn social skills. Eighty-three per cent say they make friends easily at school, and they report relatively little bullying (a big problem in Britain).

Going easy on grades

Something else that helps: Dutch schools aren’t that demanding. Childhood in the US, Britain, Japan or South Korea is often dominated by the stress of trying to get into a top university that selects the future elite.

The brutal truth may be that, taken across whole societies, there’s a negative correlation between children’s academic excellence and good mental health. Japan and South Korea rank in Unicef’s top three for academic proficiency, with Ireland, while Britain is fifth – and all these countries do badly on mental health.

It’s more relaxing to grow up in the Netherlands, where hardly any universities are selective. The aim at high school in my day was typically to get the lowest passing grade, six out of 10. There was no reward for doing better. The academic level of Dutch kids remains unremarkable, especially since the Covid-19 pandemic.

Can economic growth still make us happy? The country’s elite is selected mostly in adulthood, rather than around age 17 like in the US or Britain. Even in adulthood, it’s a society with quite modest prizes for winners, which is why ambitious Dutch people often export themselves to New York or London.

On the upside, it’s a good country to be average in, and people at the bottom do relatively well. Dutch income equality is exceptionally high. I once went to interview a bus driver for disabled children in the town with the Netherlands’ lowest incomes. His house was lovely.

In workplaces, the lowliest employees are often heard and can typically address the boss with the familiar “je” rather than the formal “u”.

Many societies try – occasionally successfully – to optimise for excellence or wealth. I’m pleased I grew up in a place that chose life satisfaction instead. FINANCIAL TIMES

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retirement good

For many people, their retirement account balance is a sobering reminder that good intentions don’t always lead to good outcomes.

Perhaps you intended to increase your retirement savings each year, but you instead upgraded to a nicer car when you were promoted. Or you charged family vacations to your credit card but never paid them off. Maybe you borrowed from your account to pay for home repairs because you didn’t have an emergency fund.

The result: Instead of the recommended six times your annual salary in a retirement fund by age 50, you have less than $100,000 and fewer than 20 years to finance what could be a decades-long retirement.

In fact, nearly 60 per cent of savers worry that they aren’t putting aside enough money, according to a 2024 Bankrate study. And about one-quarter of US adults over the age of 50 who are not yet retired said they would never be able to.

While 73 per cent of private-sector and state and local government employees have access to an employer-sponsored retirement plan, just 56 per cent participate, according to the US Bureau of Labour Statistics. And many people who do sometimes cut back or stop their contributions to offset inflation and unexpected expenses – or when there is uncertainty in the markets.

Experts have identified five common habits that sabotage retirement savings, all stemming from our tendency to choose immediate gratification. Here’s a closer look at these money missteps and practical strategies to overcome them.

Increasing your spending

As we make more, we tend to spend more, as our perception of our wealth changes: We think we have more than we do.

“It’s a much harder transition to start saving versus spending more when we get a raise,” said Mr Dana J. Menard, founder of Twin Cities Wealth Strategies, in Maple Grove, Minnesota. If you want to fend off lifestyle creep, make a plan to use a portion of your raise to increase savings or pay down debt before extra money hits your account, he said.

Ms Ariana Alisjahbana, a lead adviser with North Berkeley Wealth Management in California, suggests setting up retirement contributions to automatically increase 1 or 2 per cent annually.

Carrying a balance

Carrying credit card debt, a student loan and an auto loan can overwhelm borrowers, leading them to make only the minimum monthly payment. Most consumers don’t realise that the minimum payment on a card barely covers the interest rate charges, Mr Menard said, which on average currently range from 21.16 to 22.73 per cent.

“If you keep paying the minimum, the chances are you’re never going to pay that balance off,” he said. Getting out of debt becomes even harder when you keep charging items to your credit card.

“The ability to just grab your phone, tap a few times and have something sent to you that day, within a couple of hours, makes it a lot easier to overspend,” Mr Menard said.

When it comes to paying down credit card debt, there are two primary strategies. The mathematically optimal approach is to focus on the card with the highest interest rate first, in order to minimise the total interest paid over time. However, Mr Menard recommends paying off the card with the smallest balance first, because it provides a psychological win that can motivate people to continue.

Not tracking the small stuff

The average consumer spends US$118 (S$152) a month on food delivery and US$78 a month at coffee shops, according to a 2023 survey of 1,000 US adults by Empower, a financial services firm.

When we think about expenses, we often focus on big-ticket items like our rent or mortgage, grocery bills, and car and student loan payments, but smaller convenience costs can add up quickly. If you’re looking for ways to save, these minor expenses are a good place to start.

Each month, review your spending by listing all expenses on a spreadsheet, said Ms Melissa Caro, the founder of My Retirement Network, a New York media company. Track every expense, from daily coffee and takeout to major bills like rent or mortgage, insurance and utilities. Don’t overlook streaming subscriptions, cellphone plans or groceries, and be on the lookout for cheaper alternatives.

Failing to plan for emergencies

Everyone needs an emergency fund, even if you’re living with your parents or renting. An emergency fund acts as a buffer against unexpected job loss, medical bills and car repairs.

Without one, we’re more likely to withdraw funds from our retirement account, said Ms Melinda Satterlee, the founder of Marathon Wealth Management in Medina, Washington. “They think, ‘This is money I’m saving. I can access it,’ but they’re not told how much that will cost them,” she said.

Spending windfalls

A bonus or a tax refund is a painless way to build up an emergency fund or pay down debt. Caro recalls using the bonus from her first job after college to pay off her student loan in full.

“The fact that I still remember that says something to me, whereas I’m sure if I bought a new outfit, I would not have remembered it as well,” she said.

Each year, create a “windfall plan” that outlines exactly how you’ll allocate any unexpected income, Ms Alisjahbana said. Document specific percentages to be used for debt reduction, emergency savings and possibly a small splurge. Having a strategy prevents impulsive decisions and protects your long-term goals.

If you don’t have a plan and receive unexpected income, wait 30 days before deciding how to use it, Ms Alisjahbana said. One of her clients recently received a sizable court settlement but lacked a windfall plan. After the recommended 30-day wait, the client decided to put most of the funds into her children’s 529 accounts for their education.

The cumulative effect of overcoming these five behaviours can be transformative for your retirement nest egg. As Mr Greg Guenther, CEO of GRANTvest Financial Group, a financial planning firm, put it: “Small choices can snowball into big changes.” NYTIMES

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drinking is bad

NEW YORK – Drinking is harmful to your health at any age. But as you get older, the risks become greater – even with the same amount of drinks.

Alcohol affects “virtually every organ system in the body”, including the muscles and blood vessels, digestive system, heart and brain, said Professor Sara Jo Nixon, director of the Center for Addiction Research & Education at the University of Florida. “It particularly impacts older adults because there’s already some decline or impact in those areas.”

There is “a whole different set” of health risk factors for older drinkers, said Professor Paul Sacco, who teaches social work at the University of Maryland, Baltimore, and studies substance use and ageing. People might not realise that the drinks they used to tolerate well are affecting their brains and bodies differently, he added.

Alcohol can present new problems in older age, particularly at 65 and older, for even light or occasional drinkers.

Older adults tend to have less muscle mass and retain less water in their tissues compared with younger people, which can increase blood alcohol concentration, said Dr Aaron White, a senior adviser at the National Institute on Alcohol Abuse and Alcoholism (NIAAA). This means it takes fewer drinks for older people to feel intoxicated, and heightens the risk of severe injury from falls.

According to Prof Nixon’s research, older people also show deficits in working memory at lower blood alcohol concentrations than younger drinkers. In another study she worked on, some older adults in driving simulations showed signs of impairment after less than one drink.

Worse outcomes for those with chronic disease

Drinking alcohol can increase the risk of developing chronic conditions such as dementia, diabetes, cancer, hypertension and heart disease.

But it can also worsen outcomes for the majority of older adults already living with chronic disease, said Assistant Professor Aryn Phillips, an expert in health policy and administration at the University of Illinois Chicago, who studies alcohol and ageing.

Drug interactions also come into play. Mixing alcohol with prescription medicines that older adults commonly take, such as those for treating diabetes or hypertension, can make the medications less effective or cause harmful side effects, like ulcers or an irregular heart beat.

Benzodiazepines, when combined with alcohol, can slow breathing and act as a powerful sedative.

Even over-the-counter medication can be dangerous. Aspirin, which some older people take to reduce cardiovascular disease risk despite the potential side effects, can lead to severe gastrointestinal bleeding, which older people are already at higher risk for, said nutrition science professor Michael Wheeler at East Carolina University, who researches alcohol-induced liver disease.

Some older adults also contend that hangovers worsen with age. While there is no strong scientific evidence supporting this, the hangovers may seem worse because alcohol can exacerbate other symptoms of ageing, like poor sleep, Dr White said.

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How to reduce your risk

Experts said alcohol use among older adults appears to have risen in recent years, though national trends are difficult to track outside self-reported surveys.

One federal survey from 2023 found that 12 per cent of adults 65 and older – about seven million people – reported drinking at least four or five drinks in a sitting in the previous month.

After decades of mixed messaging around alcohol’s health harms and benefits, recent studies have made it clear that no amount of alcohol is good for you.

Still, Prof Sacco acknowledged that “drinking has meaning for people”, and whether to moderate or quit altogether “is a call that you have to make in consultation with your doctor and your loved ones”.

But what is a safe amount of drinking for the older set? That is difficult to say. The available studies attempting to establish exactly how much alcohol it takes to drive up health risks in older populations use different benchmarks for moderate drinking, making it tricky to draw a consensus.

“Even as an expert in this field, I understand the confusion,” Prof Wheeler said.

Prof Nixon advised adults 65 and older to consume no more than one drink a day and no more than seven a week.

The NIAAA does not establish guidelines around alcohol consumption, but the Centers for Disease Control and Prevention defines moderate drinking for adults of all ages as two drinks or less a day for men, and one drink or less a day for women.

All the experts emphasised that older people should pay close attention to their bodies’ response to alcohol, and to stop drinking or cut back if they feel like it is affecting them more physically or cognitively.

“If you’re not currently drinking, don’t start,” Prof Phillips said. And if you do drink, be honest with your doctor about your consumption, and do it in a safe environment, knowing that your tolerance may not be what it used to be, she added.

“The answer doesn’t have to be abstinence,” Prof Nixon said. But healthy ageing “probably does not include multiple drinks a day for most people”. NYTIMES

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retrench

SINGAPORE – When Mr Alan Chen, 57, changed careers in April 2025, it was not by choice.

After his 27-year career in IBM ended in December 2024, he received a severance package as part of a retrenchment exercise. His last position was regional human resources partner at the global technology company, where he also worked in areas like project management and business development.

He was optimistic about the future, even though the change was involuntary.

“Maybe it was a sign for me,” he says. “It gave me the push to choose something I liked, which involved helping others. I looked forward to doing something different.” He is married to a 56-year-old marketing manager and the couple have three adult children in their 20s.

Certified as a personal trainer, Mr Chen has been volunteering over the past two years, conducting exercise sessions with different groups like seniors and children with autism.

Through a jobs portal at the Centre For Seniors, a non-profit that promotes the well-being and employability of older persons, he found full-time work as an executive at an Active Ageing Centre in Tampines, run by Lions Befrienders, a voluntary welfare organisation.

For the last three months, he has adapted well to his new sector, organising programmes and outreach services for seniors in the neighbourhood.

In switching to another line of work, he took a huge pay cut. His current salary is “not even 20 per cent” of his previous pay, but he had already adjusted his expectations. He has investment policies with payouts that will be disbursed until he is 70.

“Financially, I’m doing okay. This, to me, is a meaningful job,” he says.

Mr Alan Chen has adapted well to his new sector, organising programmes and outreach services for seniors in the neighbourhood. ST PHOTO: AZMI ATHNI

 Growing interest in career development for older people

Several organisations report that a growing number of older persons, who have not reached the official retirement age of 63, are showing interest in reskilling and other programmes geared towards career changes.

The Centre For Seniors (CFS), located in Bishan, runs courses that help mature workers explore new career options, plug knowledge gaps and boost their digital literacy and other soft skills.

The number of persons aged 50 and above who enrolled in the centre’s career-related training rose from 800 participants in 2013 to more than 1,500 participants in 2023, an increase of nearly 88 per cent over 10 years, says its executive director Sanchita Singh.

Common reasons for seeking a career change later in life include a desire to give back to society through roles in social services, education or eldercare; early retirement or retrenchment; health or caregiving needs that prompt a shift to more flexible work; as well as a “lifelong learning mindset”, where some pursue new interests and fields of work, says Ms Singh.

Meanwhile, the wide range of career support programmes offered by Workforce Singapore (WSG), a statutory board under the Ministry of Manpower, includes the increasingly popular Career Conversion Programme (CCP), which spans about 30 sectors. This scheme helps employers broaden their talent pool by reskilling existing employees or mid-career new hires to take on job opportunities with long-term prospects for progression.

Close to 7,700 people participated in CCPs in 2024, compared with about 4,700 participants in 2022, says Ms Gillian Woo, director of the Enterprise Programmes Division at WSG. This represents a rise in participation of nearly 64 per cent over two years.

Since 2021, around 45 per cent of CCP placements are aged 40 and above, Ms Woo adds. Among them, the top three sectors represented are food services, electronics and infocomm technology.

Ms Rozita Yazid, a senior career coach at WSG, says: “Career changes later in life are becoming increasingly common in Singapore’s dynamic economy.

“We have observed that successful transitions often involve combining existing competencies with new skills rather than starting completely fresh. It’s important to take time to explore what genuinely interests you before switching careers.”

Over at Collective Change Institute, which specialises in coaching services and certification, co-founder Lin Tan says the Covid-19 pandemic drove more individuals – including senior corporate leaders, vice-presidents, managing directors and heads of departments – to explore or embark on a career switch.

She says: “Covid and its retrenchment rates shocked people into realising that they may not always have their jobs. People are trying to find something more congruent with their values when it comes to their careers and life work.”

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Look at your finances

What is it like to change careers in middle age and beyond?

In interviews with people in their 40s to 60s who have successfully made the leap, The Straits Times found that having a solid financial buffer was an important factor, although not all have that luxury.

Turning one’s life around as an older person poses significant challenges, such as having to build a new identity and facing age-related bias, say experts.

For many, the dream of pursuing their passion, via a second career in their 50s, was planted years earlier.

Ms Cheong Choy Kiew, 64, started her coaching sole-proprietorship, Batang Tiga Consulting, in 2019 at the age of 58, after spending some 28 years in AstraZeneca, a multinational biopharmaceutical firm. She had held a variety of positions there, starting off as a statistician, then moving on to managing and auditing clinical trials across the Asia-Pacific region, directing clinical operations, then leading teams in Japan and China.

At the age of 43, she was assigned an executive coach by AstraZeneca as part of a leadership development programme, who inspired her to take up coaching and eventually build a second career.

“Through coaching, I realised that I was letting life come to me, going with the flow, rather than taking charge of my own life. I was happy being given work to do, but I realised I could do a lot more,” she says. “I wanted to develop people to be the best version of themselves.”

“Be clear about what it is you are good at – your vision of yourself – and be clear about your finances,” she advises those contemplating a similar sea change.

At the age of 43, Ms Cheong Choy Kiew was assigned an executive coach by AstraZeneca as part of a leadership development programme, who inspired her to take up coaching and eventually build a second career. ST PHOTO: GAVIN FOO

Married with an adult son, she now offers leadership, team and executive coaching. She and her husband have a second property they rent out, savings and profits from AstraZeneca shares she sold when she left the company.

And she is reconciled to her coaching business bringing in “pocket money” rather than the corporate pay cheque she once received.

Prepare decades ahead

Former deputy superintendent of police Kamaruzaman Gaffar, 60, enjoyed his 37 years in the police force. But to live out his dream, he knew he had to wait for his pension, which he received at age 55 upon opting for early retirement.

For several years prior, he took courses to upgrade his skills in digital marketing, business management and product pricing.

“All along, I’d been a salaried worker. I hoped to be an independent entrepreneur. I have my pension as a backup,” says the marketing director of XL Design Build, which he launched five years ago, together with a mentor in the construction industry. The firm provides construction, design, maintenance and repair services for outdoor and indoor spaces, and he hires a team of freelance workers.

Kamaruzaman Gaffar took courses to upgrade his skills in digital marketing, business management and product pricing. ST PHOTO: VENESSA LEE

Mr Kamaruzaman, who is married to a housewife and has 18-year-old twin daughters, now has two other businesses providing Islamic-based services. He does not earn as much as his previous salary, but there are other dividends to going it alone.

“Being your own boss, you decide your own direction, whether to generate more income or to have more work-life balance. So far, I have a balance of both,” he says.

A life of many pivots?

Associate Professor Trevor Yu, from Nanyang Business School at Nanyang Technological University, says it is becoming more common for both white- and blue-collar professionals to change careers mid-stream.

He says: “Career changes in white-collar jobs are driven by artificial intelligence (AI) and rapid technological advancement that are replacing routine aspects of professional jobs that do not require high levels of creativity, innovation or human interaction.

“Similarly, those in blue-collar jobs are also facing the need to consider change due to the replacement of manual labour with automation and AI-powered job replacement.”

However, he cautions: “From a learning and uncertainty standpoint, it is still hard to pivot to an entirely new career unless one is hugely dissatisfied with the current situation.”

Also, the concept of pivoting, as viewed by white-collar workers, is markedly different from that of blue-collar workers, who may have different conceptions of what constitutes a career. Lower-income workers often have to pivot around different trades, skill sets and industries.

Ms Kaylee Kua, executive director of Daughters Of Tomorrow (DOT), a non-profit that empowers lower-income women to gain sustainable employment, says the “initial motivation” for the women whom DOT supports is often “about survival and providing for their loved ones, though over time, many begin to see the possibility of building a fulfilling career that reflects their own aspirations as well”.

Many of these women, who may not be highly educated, “have to quickly learn and adapt to the demands of different industries”, she adds.

Ms Suriyati Karsan, 42, is a beneficiary of a confidence-building, job readiness programme at DOT.

Ms Suriyati Karsan, now working as a baker at Auntie Anne’s, is a beneficiary of a confidence-building, job readiness programme at Daughters Of Tomorrow. ST PHOTO: ARIFFIN JAMAR

She has had more than 17 jobs ranging in sectors like warehousing; food and beverage; hotel services like housekeeping and banquet service; and retail, since she left school at Secondary 2. These are mostly contract jobs for a specific time period. She is now working as a baker at Auntie Anne’s, a pretzel chain.

She has four children aged 26, 25, 20 and 10, and is married to a taxi driver, who is 52.

Unlike others who pivot in a big way from one career to another, her working life consists of “a lot of pivoting”, she says, whether it is learning to operate warehousing machinery; mastering how to make and serve baked goods; or working as a store assistant.

“I think mine is not a career, it’s working for my family,” she says.

Having an office job is a “dream”, she adds, but she has another goal to save money for. “For more than 20 years, I’ve been living in a rental flat. I want to achieve something first. I want to buy a place of my own,” she says.

Tips on how to switch careers in middle age and beyond

Ms Rozita Yazid, a senior career coach at Workforce Singapore, suggests five key tactics for mature professionals contemplating a career switch:

Start with a well-planned transition strategy, not an impulsive change. Take time to research your target industry, understand its requirements and map out a realistic timeline for the transition. Your wealth of work experience is valuable – use it to create a thoughtful roadmap.

Build your financial foundation first. Career transitions often involve an initial reduction in compensation, so ensure you have adequate savings to sustain yourself. Your years of experience might have given you some financial stability – leverage this advantage to make a more comfortable transition.

Focus on identifying and pursuing work that genuinely energises you. At this stage in your career, job satisfaction becomes increasingly important. Your extensive work experience helps you better understand what truly motivates you – use this self-awareness to guide your choice.

Leverage your transferable skills and professional maturity. Focus on competencies that are not industry-specific, such as leadership, problem-solving and communication. Consider starting the transition while still employed, perhaps through part-time courses or volunteering in the new field.

Tap your professional network. Your years in the workforce mean you likely have a robust network; activate these connections through LinkedIn and industry events. Consider progressive transitions into adjacent industries or roles that build on your existing experience, rather than attempting complete career overhauls. You can also explore WSG schemes like the Career Conversion Programme (CCP) or Mid-Career Pathways Programme (MCPP) to reskill yourself and gain industry-relevant skills and experience.

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uni aus

SYDNEY – Australian universities have slashed entire courses and let go of staff – particularly in the humanities – to stay afloat as they grapple with rising wages as well as a cap on the intake of international students, which hurts profitability.

One of Australia’s leading universities, the Australian National University, has cut more than 200 positions through redundancies and voluntary departures as it seeks to find savings of A$250 million (S$208.6 million) by 2026.

Other universities following suit include Western Sydney University, which plans to slash up to 400 jobs, and Macquarie University, which is looking to cut up to 60 academic staff from the Arts and Science and Engineering faculties.

The latest institution to announce cuts was the University of Technology Sydney, which revealed on Aug 14 that it was suspending enrolment in more than 100 courses as it seeks to cut 400 staff. The hardest-hit faculties include Design and Society as well as Health.

According to an analysis provided to The Straits Times by the National Tertiary Education Union, universities announced cuts amounting to 3,578 jobs in 2024 and 2025.

The decision to scale back humanities programmes was prompted by a decline in interest in these courses in recent years.

Professor Andrew Norton of Monash University, an expert on Australian universities, told ST that humanities enrolments have been declining in recent years, possibly due to the emergence of a generation of students who grew up with social media and were less inclined to enrol in studies that required reading lengthy texts.

“There are fewer and fewer students in the humanities, and more subjects are falling below the threshold of viability,” he said.

“The concentration needed to read books of history or literature is no longer there. These subjects are out of reach, as they require skills that many younger people no longer have.”

Asked whether the cuts are likely to affect the quality of education, Prof Norton said: “I am sure they will. Academics are departing mid-course, and some subjects are gone.”

He added that the decline in interest in the humanities came as Australian universities were struggling to address rising costs due to wage increases, as well as changes to workplace laws in 2024 that required universities to switch many of their casual staff to permanent contracts.

University wage increases vary, but many have annual increases of about 3.5 per cent, which is in line with the national average but above the current inflation rate of 2.1 per cent.

Compounding universities’ woes, an increase in the non-refundable fee for student visas – from A$700 to A$1,600 in 2024 and then A$2,000 in 2025 – as well as changes making it harder for foreigners already in Australia to obtain student visas are affecting international enrolments, particularly at regional institutions.

“The problems for universities are on the cost side,” Prof Norton said. “Subjects with low enrolments cannot cover their costs and are being axed... The changes to student visa regulations have particularly affected regional institutions that serve the Indian market, which tend to be more migration-focused students,” he said, referring to students who look to stay on in Australia beyond their studies.

Data indicates that as at May 2025, Australia had 442,407 foreign students in universities, up from 398,588 in May 2024. This increase was driven partly by foreigners already in Australia enrolling in studies.

But fresh enrolments of international students fell from 169,907 in 2024 to 127,573 in 2025, following the visa fee increases in 2024 and 2025.

Of those enrolled in May 2025, about 140,000 were from mainland China, 82,000 were from India, 43,000 were from Nepal and 20,000 were from Vietnam. There were 5,581 students from Singapore. 

Mr Phil Honeywood, chief executive of the International Education Association of Australia, told ST that the cuts to humanities courses and staff in Australia would not affect most international students, who tend to study science, engineering, technology and economics-related courses.

However, the visa fee increases could be a deterrent, he said.

“It is the world’s highest non-refundable student visa fee,” said Mr Honeywood. “It sends a message that you’re not as welcome here as elsewhere.”

The latest institution to announce cuts was the University of Technology Sydney, which revealed on Aug 14 that it was suspending enrolments in more than 100 courses as it seeks to cut 400 staff. PHOTO: ADOBE STOCK

Universities Australia, a peak body that represents Australian universities, and the Group of Eight, which represents eight of Australia’s top universities, declined invitations to comment.

Some universities say slower visa processing for some international students has also affected enrolments.

The federal government typically prioritises visa processing of international students, but in 2025 it ordered that the prioritisation would end once individual universities had surpassed specified “caps” on the intake of foreign students.

These changes followed concerns about rising migration to Australia and the potential impact on property rental rates and congestion.

But the government recently signalled it was once again open to boosting international student numbers.

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On Aug 4, it announced that the cap on the annual intake of new international students would increase from 270,000 in 2025 to 295,000 in 2026.

The government said it wanted to restore confidence in the sector, adding that foreign students provide a benefit to universities and the broader economy and help to improve Australia’s ties with countries in the region.

The recent hits to university revenue have led to growing concerns in Australia about the future of the country’s education institutions, and the risk that the decline of the humanities will lead to declines in literacy levels and critical thinking.

In an article published in The Sydney Morning Herald on July 8 that was headlined “Don’t go to university next year. Just don’t”, columnist Jenna Price urged parents to reconsider sending their children to study at university.

“Universities are now places of chaotic cost-cutting and cruel managers whose sole interest is the bottom line,” she wrote. “Entire disciplines are being cut, staff numbers slashed... Going to university in 2026 is a risk no one should take.”

Jonathan Pearlman writes about Australia and the Pacific for The Straits Times. Based in Sydney, he explains matters on Australia and the Pacific to readers outside the Oceania region.

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