In Singapore, where the cost of living is constantly rising and the average life expectancy is increasing, it is crucial for individuals to plan for their retirement. Pension planning is a crucial aspect of financial planning for individuals in Singapore. It involves setting aside a portion of your income during your working years to have a steady stream of income during your retirement years.
One of the main reasons why pension planning is important in Singapore is because the CPF (Central Provident Fund) alone may not be enough to sustain a comfortable retirement. The CPF is a mandatory contribution scheme that requires both employers and employees to contribute a percentage of their monthly income. While this is a good starting point, it may not be sufficient for individuals who wish to maintain their current lifestyle or have a higher standard of living during their retirement. Therefore, having a separate pension plan allows individuals to have a higher retirement income, providing them with a better quality of life.
Pension planning also helps individuals manage their finances better and avoid any financial burdens during their retirement years. With a pension plan in place, individuals can have a steady stream of income that they can rely on, reducing the need to dip into their savings or rely on their children for financial support. This gives retirees peace of mind and allows them to enjoy their golden years without any financial stress.
In conclusion, pension planning is crucial in Singapore for individuals to have a comfortable
