Forget Password?
  1. Indices
  2. Commodities
  3. Currencies
Straits Times 3,211.05 -0.44 -0.01%
Hang Seng 27,079.16 -273.53 -1.00%
Dow Jones 27,219.52 +37.12 +0.14%
Shanghai Composite 3,034.41 +3.17 +0.10%
AK: Is It Too Late to Plan for Retirement at Age 57?
Aspire, Thought Leaders | 13 November 2015
Articles (41) Profile

This is in reply to a reader’s comment:

Hi, AK, I just started reading your blog. I am already late for financial planning towards retirement. I am 57. How I wish I had read this stuff when I was 20.

AK, I would like your advise because considering my age now, I cannot do much. I have SRS account and I bought into Great eastern policy 5 years plan yearly with the 12k.

I am just looking into passive income such as good dividend yearly for my monthly upkeeping.

Looking forward to hear from you.

-       Hosea

My reply:

Hi hosea,

Welcome to my blog. :)

I am not allowed to give advice to individuals and I don’t. ;)

However, if I were 57, I must recognise that I cannot be too adventurous with my money. I need to be more conservative.

Being more conservative, the returns might be lower but there is less chance of a massive or total loss of capital which a senior can ill afford.

I want to consider investment grade bonds which include Singapore Savings Bonds and also possibly maxing out my CPF-RA to benefit from a risk free 4 percent to 6 percent per annum return. This will provide a guaranteed monthly income in


Of course, I would have to make sure that my lifestyle is adjusted according to how much I expect to have coming in at retirement.

It is not just how much we have coming in that is important. It is also important how much the outflow is.

Now, at 57, if I think there is going to be a mismatch in what I need and what I would have coming in. Then, postponing retirement to a later age beyond 62, which is only 5 years away from now, might have to be considered. This will also allow my CPF savings to continue growing.

What about investments?

Well, I could consider blue chips which are less volatile and which have a good dividend paying history.

I might want to consider SPH, ST Engineering, SATS and VICOM, for examples.

I might have a few REITs which are more conservatively geared in my portfolio but I wouldn’t want them to be a major part of my portfolio because I might not have the resources to take part in rights issues if they should happen.

If I have a HDB flat, there are many ways to monetise my flat. I could sell some of the remaining lease to HDB or I could rent out a spare room or two. I could choose to downsize too.

Finally, I remember that I have some savings in my SRS account which I can start drawing from at age 62 over a 10 years period. As long as I must pay income tax, I want to consider continuing to make contributions to my SRS account to pay less in tax.


I don’t think it is too late to plan for retirement at age 57 but we have to be realistic with the options which are available.

AK is a Singaporean stock market investor and a popular blogger. His blog was created with the intention of educating investors and sharing his investing journey with the target of having a more secure financial future in an uncertain world by creating a stream of reliable passive income with high yields.

Please click here for more information about this author.

Join The Conversation
The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

All Rights Reserved. Pioneers & Leaders (Publishers) Pte Ltd. Best viewed with Mozilla Firefox 3.5 and above.