Hi ,

Most Singaporeans focus on growing their wealth for retirement. But here's what really matters: Will you have reliable income to cover your essentials for as long as you live?

I see too many retirees with impressive portfolios who still worry constantly about money. Market downturns keep them up at night. The fear of outliving their money haunts every decision.

There's a better way: the safety-first retirement approach.

Instead of chasing after high returns and hoping everything works out, you first secure your essential expenses with guaranteed income - then invest for growth with what's left.

Here's how it works....

The Safety-First Retirement Plan for Singaporeans

Prioritize Your Goals Like a Pyramid

Think of retirement planning like building an HDB flat - you need a strong foundation before the finishing touches.

The priority order:

1. Essential needs - Food, housing, transport, healthcare
2. Contingency fund - Emergency medical expenses
3. Discretionary spending - Holidays, dining out, lifestyle upgrades
4. Legacy fund - Money for children or loved ones

Don't think about holidays or inheritance until your essentials and emergency funds are secured.

The Problem with Traditional Investing

Most Singaporeans diversify across CPF, unit trusts, stocks and bonds to grow their nest egg while managing risk.

The problem?

This focuses on growing wealth, not ensuring you can pay your bills every month for the next 20-30 years.

Asset-Liability Matching: The Better Way

Instead of trying to beat the market, make sure you have cash flow available when you need it.

For essential spending, use investments that are "secure, stable, and sustainable":

• CPF LIFE payouts
• Singapore Savings Bonds or government bonds held to maturity
• Defined benefit pensions
• Income annuities

Critical principle: Volatile investments like stocks are inappropriate for basic needs and emergency funds. Your essentials should be covered by guaranteed income, regardless of market crashes.

Once your basics are covered, invest remaining money in stocks, REITs, or other growth assets for discretionary spending and legacy goals.

Building Your Guaranteed Income Floor

First, build a guaranteed income floor to cover essential monthly expenses:

1. CPF LIFE payouts (your foundation)
2. Other pensions (if you have them)
3. Bond ladders - Singapore Savings Bonds that mature when needed
4. Additional annuities - Top up CPF or buy private annuities

Make sure your floor keeps up with inflation.

Once your income floor is solid, invest remaining funds for:

• Extra holidays
• Restaurant meals and entertainment
• Helping your children
• Leaving an inheritance

Since this spending is discretionary, cutting back during a market downturn won't threaten your ability to eat, pay bills, or see the doctor.

Why There's No "Safe Withdrawal Rate"

You may have heard about the "4% rule." Safety-first advocates say: there's no truly safe withdrawal rate from volatile investments.

Why this matters:

• You can't easily return to work at 75
• You don't know how long you'll live (85? 95?)
• You don't know what the market will do after you retire
• Failure to cover basic needs is not acceptable

The Power of CPF LIFE and Annuities

Income annuities provide longevity protection through mortality credits.

In plain English: You don't know when you'll die. If you're self-managing, you must plan for 30+ years and spend conservatively.

With CPF LIFE or an annuity, the insurance company pools risk across thousands of retirees. Those who pass away earlier help fund payments for those who live longer.

This means:

• You can spend more each month vs. managing it yourself
• You'll never outlive your income - payments continue for life
• Market crashes don't affect your essentials

The Bottom Line

1. Secure your essentials first (CPF LIFE, bonds, annuities)
2. Build an emergency fund
3. Only then invest for growth with remaining funds
4. When your basics are guaranteed, market volatility matters much less

Is This Approach Right For You?

If you're focused on growing your portfolio without a clear strategy for converting wealth into reliable retirement income, you might be taking unnecessary risks.

The questions I hear most often:

• "Is my CPF enough, or do I need to supplement it?"
• "How much should be in guaranteed income vs. growth investments?"
• "When should I start building my income floor?"
• "How do I balance leaving a legacy with not running out of money?"

Let's discuss your specific situation in a complimentary 30-minute discovery call.

We will:

✓ Review where you stand in your retirement planning

✓ Identify gaps between your guaranteed income and essential expenses

✓ Discuss strategies to build your retirement income floor

✓ Determine if working together makes sense

No sales pitch - just a straightforward conversation about your retirement goals.

[Schedule Your Discovery Call Here]

Your retirement deserves more than hope and luck.

Let's build you a plan that delivers certainty where it matters most.

Best regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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