Are you set to retire comfortably in Singapore?

It's important to build income streams, diversify investments and make better use of idle cash

- Angela Tan

You're in your 50s, the kids are grown and off your hands, the mortgage is nearly paid off and a comfortable retirement beckons, but life's next chapter can bring unexpected challenges.

A friend who thought she had more than enough to retire on had to stop work earlier than planned to care for her elderly parents and a dependent sibling.

Such surprises, along with longer life expectancy and higher living costs, can derail the best-laid plans, making preparations for your golden years more critical than ever.

The road to retirement requires immediate attention, from understanding how far your savings will stretch to making sense of the Central Provident Fund (CPF) and various government support schemes.

Healthcare becomes a key focus. A comprehensive insurance plan covering critical illness and long-term care is crucial, says Mr Harpreet Bindra, chief executive of HSBC Life Singapore. This can help offset the financial impact of unexpected medical emergencies and ensure access to necessary care without depleting your savings.

Ms Irma Hadikusuma, chief marketing and healthcare officer at AIA Singapore, reminds us that "retirement isn't just a finish line; it marks the start of a new, potentially decades-long chapter in your life without an active income".

So how much do you really need for a comfortable retirement? Experts have sobering advice on this and whether it makes sense to those close to retiring to take up new insurance plans.

SO HOW MUCH?

A nest egg of $1 million has long been a common aspirational retirement target. With this much in cash and liquid assets, a retiree can expect a comfortable withdrawal of more than $4,000 a month over 20 years after retirement. Other retirement sums have also been bandied about—from $550,000 to $1.9 million.