How to supplement CPF for a fuller freer retirement

While CPF LIFE provides a strong foundation, it may not fully support your dream retirement, especially if you have bigger plans like long-term travel, higher healthcare needs, or simply want more flexibility. That’s where private retirement planning comes in.

Let’s explore what’s out there and how you can supplement CPF to secure a fuller, freer retirement.

1. Supplementary Retirement Scheme (SRS)

   SRS is a voluntary savings scheme that gives you:

   • Tax relief when you contribute
   • Investment options (unit trusts, stocks, bonds, insurance)
   • Withdrawals at retirement with lower tax rates

   You can contribute up to $15,300 per year (for Singaporeans and PRs), and it's popular for those maxing out CPF top-ups. There’s a cap of $80,000 on total tax reliefs you can claim.

2. Retirement insurance plans

   These are savings-insurance hybrids that give you:

   • Guaranteed payouts at a chosen retirement age
   • Options for monthly income or lump sum payment
   • Some protection benefits like disability coverage

   They suit those who prefer predictability and don’t mind committing long-term.

3. Investment-linked plans (ILPs) or robo-advisors

   These products combine investments with life coverage or automation. If you’re comfortable with market risk:

   • ILPs give exposure to funds with potential growth, but often come with higher fees, so monitor your portfolio closely
   • Robo-advisors help you invest passively with low effort and fees

   The earlier you start, the more time your money has to grow.

4. Property as an income source

   Some Singaporeans plan to:

   • Rent out rooms or a whole flat post-retirement
   • Downsize from a condo to a smaller HDB
   • Monetise through the Lease Buyback Scheme or Silver Housing Bonus

Just be aware of property market risks and potential vacancy periods.

Things to watch for:

• Liquidity: Some products lock your money for years
• Fees: High fees can eat into long-term gains
• Risk appetite: Choose what suits your comfort with market ups and downs