Thursday 9 September 2021

Running out of money in your later years

Came across this article from The Straits Times recently where it wrote that from an AIA survey, it was gathered that more than half (54%) of Singaporeans will run out of money in the last 14 years of their lives. Sounds scary, to run out of money and what more for 14 years and at a time when you are old and not as healthy or able-bodied as before.

 An example given was this means that on average, if someone has the potential to live to 84, his savings for retirement will run out by age 70, leaving him with no money for the next 14 years. Children are some people's retirement plan although you should not think that way because your kids might not know that they are your retirement plan and nothing is guaranteed considering the increasing costs of living nowadays.

With many of the younger generations not having children or having just 1 or 2, retirement is a huge focus of the government as the load on the government will increase if everyone rely on payouts for their retirement. So definitely people have been interested and hoping to plan for their retirement way before they start it.

Sandwiched generation

As we start to grow up and form our own family, we will have children and then with the expenses of having to take care of our children, we also need to provide for our parents and thus the term sandwiched generation which is the situation faced once one chooses to have children and at the same time have to take care of their parents.


Of course, there are couples who choose not to have children hence the term DINK which stands for Dual Income, No Kids. This allows for the couple to have more disposable income as they have dual income and no kids which means not as much added expenses that come with children.

Having dual income means they are often the targets of marketing efforts for investment products and luxury items. However, if they are concious of their spending, they are able to save at a rapid rate as items are shared and having a dual income means availability of more disposable cash which creates the possibility for further exploration of investment opportunities. The money that might have been spent on children could be put into stocks, bonds, or other investment vehicles. Investing even a few thousand dollars per year can make a substantial difference in the long run.

Things to ponder on as advances are made in the medical field

Living to a ripe old age is a blessing but nowadays, I do come across people who tell me that they don't want to live too long, including my parents. Of course, living to an old age and being healthy is a different story, what you don't want is to be sick or being immobile which can lead to a lot of pressure for caregivers and family members.

As we have lesser children which means that the elderly in the future will not have offspring to care and take care of them, this might mean a higher burden on young population as the government might need funds to take care of the ageing population.

The future might be different from what we are experiencing now, thinking about retirement early can provide some form of plan or change in our behaviour. It is good to be aware of your own finances and to know where you are at currently.

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1 comment:

  1. One can always commit suicide, which is not a problem at all in my humble opinion, should one's existence no longer bear any significance to the advance of humanity.