Do you know how to compound interest for your retirement in Singapore? Well it depends on three factors:
1. How long before you are going to retire?
2. What is the expected rate of return for your investment?
3. What is the expected amount of money you want to save every month?
Singaporeans are expected to retire at 62 and assume that you start to accumulate your retirement fund at the age of 22, you will have 40 years to do so. In short, If you start later, you will have less time to accumulate your retirement sum.
The expected annual rate of return will largely depend on the risk appetite of the saver. For those who are willing to take high risk they may assume a 12% return. For those who are willing to take moderate risk, they may assume an 8% return ; and for those who are conservative, they may assume a 6% return.
The expected amount of money you want to save every month will depend on your Incomes minus your expenditures. Many financial planner will suggest you pay yourself first; and a 10% saving from your monthly income will be a good starting amount. There is no right or wrong amount. The earlier you start saving, the higher amount of retirement sum you will accumulate because of the compounding effect of the interest earned!
Now just key in the boxes provided and click submit to get the Expected Retirement Sum you will be able to accumulate based on the compound interest!
Compound Interest at the beginning of the year