Fact 1 – Longer Life Expectancy
Average life expectancy have increased with advancement of healthcare and awareness.
Singaporeans are living longer and we have to take this into consideration when planning for our retirement.
Looking at the above data, we are very roughly estimating the following life expectancies for the different age groups.
Disclaimer: Please note that these are average life expectancies and the actual lifespan of an individual can be longer/shorter. Our rough extrapolations below are merely guesstimates.
Our purpose here is to illustrate that we will be living longer and we will require more savings for our retirement. For people in their 40s, 30s and 20s, we should plan retirement around an increased life expectancy figure and not kid ourselves that we will live “shorter”. This is important as the difference can be very significant.
Imagine Alex, a 37 year old, planning retirement based on 2015 life expectancy figures of 83 years vs the extrapolated guesstimates of 95 years.
That is a 12-years difference and very possibly a different “retirement”
A prudent retirement plan will NEED to consider the above.
Click here for the next part of the series, Retirement Facts – Cost of Living (Part 2/5).
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