work longer

I agree with Invest Editor Tan Ooi Boon that many people dislike reading about or even distrust surveys relating to financial planning, believing that these are ploys to get them to buy more financial products (Why many people think having over $600k is enough to retire on, Feb 2).

Some people think that they have everything planned and hence have no need to buy financial products to make up for any shortfall. 

I know of friends who were happy to retire before reaching retirement age as they believed that they had accumulated “sufficient savings” to live their lives. 

Of course, people can retire at any age as long as the savings can outlast them. But we need to bear in mind that our lifestyle may need to be adjusted as we are using and hence depleting our fixed savings.

Any investment funds which promise to deliver a 5 per cent dividend yield may not realise the same yield rate down the road, or worse, cannot even offset the inflation rate.

With Singaporeans’ average life expectancy at 83 years and with increasing medical costs, we may need more savings to retire comfortably if we do not want to burden our children. 

I strongly encourage Singaporeans to work longer if medically able to. Even a part-time job is good enough to stay financially independent and mentally alert. 

But for those who firmly believe in early retirement to have a more relaxed life, do expect an adjustment to the lifestyle as our fixed savings or investment income may not be sufficient to last another 30 or 40 years down the road.

Foo Sing Kheng

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