Good tutorial on retirement planning
PM's NDR speech helped people understand the big issues well but finding that Magic Number requires a lot more thought
PRIME Minister Lee Hsien Loong made an excellent Retirement Planning 101 presentation to a national audience on TV last Sunday. It is challenging enough for an adviser to explain the intricacies of this aspect of financial planning one-on-one to a client. Illustrating the math of retirement using hypothetical examples was certainly helpful for the general public.
It was clear that most people do not understand Central Provident Fund (CPF) rules concerning withdrawals at drawdown age and the impact of pledging the property as part of the Minimum Sum. One size does not fit all in terms of government policies around CPF as a source of income post-employment. Personal financial planning is just that: personal to each of us.
Let's take some of the key concepts in the PM's National Day Rally (NDR) speech and see how each is relevant to us as individuals and families.
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