Planning for a Longer Retirement in Singapore

People in Singapore are living longer than ever before, and that means they need to save more money for retirement. Experts say many people do not plan far enough ahead, which could leave them without enough money in their later years. Researchers and financial advisers are now urging Singaporeans to think carefully about how long their savings might need to last.

A think tank called the TIAA Institute studies how long people live and how they plan for retirement. Its head, Surya Kolluri, raised an important question: what happens if someone plans to live 15 or 20 years after retiring, but actually lives much longer? That person could run out of money and struggle to pay for healthcare and daily needs. Getting this planning right is one of the biggest financial challenges people face today.

Research released in March 2026 showed that 32 per cent of adults in the United States guessed wrong about how long they would live after turning 65. About 33 per cent guessed correctly, 13 per cent thought they would live longer than they actually did, and 22 per cent had no idea. This shows that many people find it hard to predict their own lifespan, which makes saving the right amount very difficult.

In Singapore, residents who reach age 65 can expect to live until about 86.6 years old on average. Women tend to live longer, reaching about 88.1 years, while men live to around 84.9 years. Professor Joelle Fong warns that people who only plan based on the average life expectancy at birth — 83.9 years — may run out of savings too soon. Planning beyond that number is a smarter and safer approach.

A survey done by Manulife in June 2026 found that 78 per cent of people in Singapore worry about outliving their money. Another 70 per cent fear they will not be able to afford care when they are older. Out of the more than 1,000 Singaporeans surveyed, 46 per cent said they were also financially supporting family members. More than half of that group said family costs made it difficult to stay on track with long-term savings goals.

Elijah Lee, a senior financial services manager at PhillipCapital, now plans as if his clients will live until age 100, just to be safe. He explained that retirement is a time when people cannot afford to make big money mistakes or start over. Being prepared well in advance is the only way to stay secure.

Singapore has a national savings system called the Central Provident Fund, or CPF, which helps residents save for retirement. One part of this system, called CPF LIFE, is a special insurance plan that pays members a monthly amount for as long as they live. Members can choose to start receiving payments anytime between age 65 and 70. This protects people from running out of money, no matter how long they live.

CPF LIFE works by pooling everyone's savings together so the risk is shared across the whole country. Professor Fong explained that all residents are part of this national risk pool — whether someone lives to 70 or 120. This system of shared responsibility means no one has to face the financial risk of a very long life completely on their own.

The CPF Board plans to launch a new investment option in the first half of 2028 called a 'life cycle' scheme. This scheme will offer simple, low-cost funds that are managed by professionals and automatically shift money from riskier investments like stocks to safer ones like bonds as a person gets older. Fees will be capped so that members can keep more of what they earn. However, all investments carry some risk, and returns are never guaranteed.

Retirement is not only about money, though. Financial adviser Elijah Lee asked his clients to think about what gives them meaning and purpose in life. He recalled how his own father started to decline in health after retiring from taxi driving because he had nothing to look forward to. Staying active — through work, hobbies, or community activities — can make a big difference in how happy and healthy a person feels. Experts agree that a truly good retirement needs both financial security and a sense of purpose.