Let’s start with the facts. Singapore has recently been identified as a Blue Zone country, boasting an average life expectancy of 84.9 years—one of the highest in the world. Singaporeans rank number one in healthy life expectancy, have the world’s lowest rate of cardiovascular mortality, and enjoy one of the best healthcare systems globally.
In 2007, the average life expectancy here was 77 years. Eighteen years later, it has risen by 8 years. By the time I reach 85, the average life expectancy could well be 100. Medical advancements, especially in the era of AI (Artificial Intelligence), are likely to bring breakthroughs in addressing age-related issues such as cancer and dementia.
These days, we talk not just about lifespan but also health span—the number of quality years one lives without serious health issues impacting daily life. Staying healthy and happy is my personal motto.
This naturally leads to the question of financial ability: how can we sustain ourselves and last longer into our “second halftime,” especially as my generation tends to retire younger? Today’s blog addresses financial strategies for retirement planning and shares my personal thoughts on how we can prepare, both within the government’s framework and through other means of enhancement.
As my cohort of Generation Xers (born 1965–1980) begins retiring, we must consider the tools available to us to ensure longevity while maintaining a good quality of life with zero employment income. I am 59 this year. The question is: do we still need to work part-time to stay active and engaged in lifelong learning while earning some income, or do we already have sufficient passive income to last another 30–40 years?
I like to think of my strategy as a layering of various revenue streams, each capable of producing passive income. This blog is simply a sharing of my personal thoughts and actions—it is not financial advice. Everyone must do their own homework to make well-calculated decisions.
I have been planning my retirement for years and consider myself fortunate to have been born in Singapore, where we have the excellent CPF (Central Provident Fund) system that helps us build a pension plan. My plan begins with CPF, adds on the SRS (Supplementary Retirement Scheme), and then extends into local dividend stocks, investment property, a US stock portfolio, and finally, cryptocurrencies. I will also conclude with a note on insurance while constantly looking to finetune my overall portfolio.
CPF as a foundation
CPF is a powerful long-term planning tool. A Singaporean can open an account from birth and enjoy its benefits immediately. We discovered this when our children were teenagers—we funded their accounts early, allowing them to enjoy the compounding power of interest in building nest eggs.
Some CPF gurus on YouTube encourage aiming for a million dollars in your CPF accounts as soon as possible, suggesting multiple jobs to maximize contributions. Given that CPF is government-backed, it is as good as a AAA-rated asset (Singapore itself is rated AAA), providing a consistent 2.5–4% interest.
I have opted for the maximum in my RA (Retirement Account)—currently $426,000—as I want the highest possible payout when I turn 65. My SA (Special Account) was closed after I crossed 55, but I still retain a decent sum in my OA (Ordinary Account), even after accounting for a small outstanding housing loan on an investment property.
SRS contributions
For SRS, I have been diligently contributing the maximum of $15.3k every year, both for tax savings and as a disciplined retirement plan. As I was working in a bank’s front office, I was restricted to investing in products like mutual funds and ETFs with this SRS allocation since the scheme started in 2001.
In recent years, I’ve used Endowus, an online platform that enables me to invest my SRS funds more efficiently in targeted strategies. I particularly like China, so I’ve directed funds there in recent years. Lately, I’ve also invested in the PIMCO Global Bond Fund in anticipation of interest rate cuts.
My retirement layering plan
Here’s how I see my plan unfolding:
- At 60: I can tap on my OA if needed, and use these funds to top up my CPF MA (MediSave Account) to the maximum of $75.5k for future medical needs.
- At 63: I can withdraw from my SRS, transferring all mutual fund holdings to my personal account with minimal tax penalties. This provides a second layer of income to supplement my OA.
- At 65: CPF Life payouts will begin, giving me at least $3.3k monthly for life.
From age 59 to 65, I rely on my existing financial resources and investments to bridge the gap and ensure at least $5k per month.
Beyond CPF and SRS
CPF and SRS provide my baseline—my “Business as Usual” passive income. Beyond this, I’ve layered in other revenue streams to extend my financial runway and match an extended health span.
A large portion of my net worth is in property: one fully paid home where my family lives, and another investment property generating rental income with a small loan for tax purposes. Both have appreciated substantially over the years, providing unrealized capital gains to be tapped in our twilight years.
For young adults, I cannot stress enough: property is the best long-term investment. It provides leverage (with just a 5 to 25% down payment and the rest financed through a housing loan), acts as collateral, and is essentially an enforced savings plan that allows you to upgrade as your career progresses.
In line with this property theme, I’ve also allocated up to 30% of my SGD into REITs (Real Estate Investment Trusts). Singapore has over 40 REITs, among the most in the region. As trusts, they must distribute at least 90% of their income as dividends and cannot leverage more than 50% of their assets.
REITs provide me with quarterly or semi-annual cash flows. Their stock prices are relatively stable, allowing patient entry at attractive levels. I usually evaluate them based on P/B (Price-to-Book), dividend yields, and portfolio composition. I prefer REITs with Singapore-based assets to reduce forex risk, as they typically provide 4–7% yields with good-quality names worth holding long term.
My US stock portfolio
My main focus—and what keeps me most engaged—is my US stock portfolio. As I’ve shared before, it revolves around three key themes: AI (Artificial Intelligence), QC (Quantum Computing), and Nuclear. I’ve been fully invested in the “Magnificent Seven” stocks for several years, while adding others aligned with long-term mega-trends. I believe these themes are the main drivers of a new human renaissance, the likes of which we’ve never seen—almost like the movie Wall-E (laughs). We just need to ride out the Trump-era volatility and identify the next big winners.
Cryptocurrencies
The final layer of my portfolio is cryptocurrencies, which I began investing in around 2017. Results have been mixed. My rules:
- Do not invest more than 5% of your portfolio.
- Avoid leverage.
- Only invest what you can afford to lose entirely.
Given America’s current political climate, crypto also serves as a hedge. Stick with core holdings like BTC, ETH, and SOL, while allocating a small portion for active trading. Spread your risk across multiple exchanges—I use Kraken, Gemini, Coinbase, Binance, and Bitfinex. (FTX was a painful lesson I’d rather forget.) Learn how to transfer assets between exchanges. Blockchain and cryptography are the underlying technologies here—even our CDC vouchers run on a private blockchain!
Insurance
Finally, a word on insurance: life policies generally aren’t great. I cashed out one of mine. If you must, stick to term insurance and layer them with different maturity dates. Avoid investment-linked insurance policies—they’re riddled with fees that destroy performance. For example, I bought a Prudential plan in 1997 and only recently cashed it out. Despite the stock market tripling over that period, my ROI was a mere 1% per annum!
Closing thoughts
As a retiree, my motto is simple: stay happy and healthy. Smell the roses and cherish daily blessings. Long-term retirement planning is essential to support a lifelong learning journey into the second half of life. Staying mentally sharp, socially active, and financially secure is the key to true peace of mind.
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