Here’s Why We Need to Prepare For Retirement Differently

retirement planning ocbc maxretire

Talking about retirement planning in Singapore is definitely tricky, especially for those in their 20s, 30s or 40s. On one hand, it’s quite tough to expect anyone to really foresee what their life is going to be like 20-30 years down the road. On the other hand, you have other life goals to consider and plan for, such as getting married, planning for your child’s future education, buying a home, a car or even a long dream holiday.

When it comes to life goal planning, each individual has their own needs, their own lifestyle, and their own retirement figure to hit. Aiming for a generic absolute amount for retirement can be dangerous, without understanding if it’s important for you. It’s time we start preparing for retirement differently. Here’s how:


Have A Target Figure In Mind

There have been plenty of “magic” numbers thrown around when it comes to how much you need as an absolute amount to retire comfortably. We’re not going to say that there is a magical number to solve all your retirement needs. Each person is unique and their retirement number depends on a number of factors, such as how expensive their current lifestyle is, at what age they plan to retire, how long they expect to live for, and what sources of income they will have in retirement.

As a first step, it’s essential to have a realistic target to aim for. You can start by trying a tool like the OCBC Life Goals Retirement Planner, which would give you a clear starting point and target figure. You can adjust and play with the figures and see how different numbers and inputs affect your future retirement amount.

Once you have a target in mind, you should build a plan towards reaching that figure.


Start Working Towards Your Retirement Goal Early

In our mid-years, we are inundated with immediate goals, such as getting married, having children, buying a house and car, that eat into our finances. More often than not, people start retirement planning in their late 40s.

This is too late, and will limit your room to manoeuvre. This simple illustration from OCBC Bank shows how, with the benefit of compounding interest from saving and growing your money early, you can benefit from starting much earlier. Each extra year you save for makes a big difference For the sake of argument (and not to follow in certain prescriptions of retirement sums needed), let’s use S$1 million dollars as the end goal for savings as a retirement fund. Now, for many, especially younger Singaporeans just starting out in the workforce, S$1 million dollars might seem like a distant dream that might potentially stop you from even starting to plan for it in the first place. However, breaking things down usually gives you a much better idea of how to get to your end goal.

Using a very basic calculation and assumption of 4% interest per year, here’s how much you would need to save a month depending on what age you start, to hit S$1 million at the age of 65.

Age Savings per month (4% return rate)
25 S$843.24
35 S$1,436.03
45 S$2,717.41


Secure Passive Income To Supplement Your Retirement

When you plan for your retirement, you should consider how you can accumulate wealth. The reality of retirement is that not everyone can be disciplined enough to make sure that what they’ve saved up is evenly apportioned throughout their retirement years.

Depending on your situation, it could make sense to supplement your investments with products like endowment plans can help you to ensure that you have a steady stream of money coming in each month to support your retirement lifestyle. Here’s a scenario that shows how an endowment plan – MaxRetire Income distributed by OCBC, works hard for you to get monthly stream of income in your retirement years.

ocbc maxretire endowment plan retirement singapore


Have A Clear Plan To Hit Your Retirement Amount

As mentioned before, retirement planning doesn’t just involve hitting a “magic” number and then thinking you’ll be ok after that.

It is important to get a professional appraisal and have a clear plan to hit your retirement amount. One programme to consider is OCBC Life Goals, where OCBC helps customers meet their life goals, including retirement with a clear plan of action customised for their life stage and financial situation.

One thing we like about OCBC Life Goals over other retirement planning options is that they don’t just stop there. They truly understand that plans change over time (for example, if you have a child down the road, it may affect your ability to save for the short-term), and conducting a frequent review to assess your progress and adapt your plan if required is an essential part of the programme.


Have you started planning for retirement? Tell us why or why not in the comments!

This article is brought to you in collaboration with OCBC Bank. If you are interested in finding out more about MaxRetire Income and how you can get started early, visit to find out how.


Do note MaxRetire Income is not a fixed or savings deposit, but an endowment insurance plan. MaxRetire Income is provided by The Great Eastern Life Assurance Company Limited, a wholly-owned subsidiary of Great Eastern Holdings Limited and a member of the OCBC Group. This plan is not a bank deposit and OCBC Bank does not guarantee or have any obligations in connection with it. You may want to seek advice from a financial adviser before committing to buy the product. If you choose to not seek advice from a financial adviser, you should consider if the product is suitable for you. Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high cost and the surrender value payable, if any, may be less than the total premiums paid. This document is for general information only. It is not a contract of insurance or an offer to buy an insurance product or service. It is also not meant to provide any insurance or financial advice. The specific terms and conditions of the plan are set out in the policy documents. If you are interested in the insurance policy, you should read the product summary and policy illustration (available from us) before deciding whether to buy this product. We do not guarantee, represent or warrant that any of the information provided in this document is accurate and you should not rely on it as such. We do not undertake to update the information or to correct any inaccuracies. All information may change without notice. We will not be liable for any loss or damage arising directly or indirectly in connection with or as a result of you acting on the information in this document.


Policy Owners’ Protection Scheme 
This plan is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites ( or