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Should I retire during market uncertainty?

The litmus test of a sound retirement plan is one that would not be derailed by external shocks such as poor market performance

    • A cash bucket allows you to enjoy liquidity whenever you need to draw down your financial resources during retirement, regardless of market ups and downs.
    • If you have already retired and have sufficient liquidity, consider deferring your CPF Life payouts. You can do so up to age 70. Each year that you defer, your payouts will increase by up to 7%.
    • A cash bucket allows you to enjoy liquidity whenever you need to draw down your financial resources during retirement, regardless of market ups and downs. PHOTO: PIXABAY
    • If you have already retired and have sufficient liquidity, consider deferring your CPF Life payouts. You can do so up to age 70. Each year that you defer, your payouts will increase by up to 7%. PHOTO: BT FILE
    Published Sat, May 3, 2025 · 06:00 AM

    FINANCIAL experts often extol the virtues of staying invested and ignoring the noise during heightened market volatility. Much research has been done that indicates that while it is tempting to bail out, it is usually difficult to jump back on the bandwagon without missing the best trading days, resulting in a dent in portfolio value.

    So, it is advisable to seek a diversified asset allocation that is aligned to your risk appetite, goals, financial situation, time horizon, and one that can ride out market volatility. Steadfast investors with time on their side would be rewarded when the market bounces back after a downturn.

    However, while this can work for individuals who have more than 10 years before retiring, what can a pre-retiree or a recent retiree do? Those who are older would have less time than younger investors to allow their investments to bounce back and make up the losses.

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