‘They are still working in their 60s’: Singaporean seeks retirement advice for parents

SINGAPORE: After watching his parents work hard for decades on modest incomes, a 25-year-old Singaporean is now searching for ways to help them enjoy a more secure retirement without jeopardising his own financial future.

Posting on Reddit’s r/singaporefi forum, the young man revealed that his parents, both in their 60s, are still working despite having limited retirement savings. He shared that his mother has accumulated very little CPF, while his father has yet to reach the Full Retirement Sum.

According to him, his father spent most of his working life as a driver and rarely earned more than a modest salary.

“The most I heard he earned was S$2,500, which is right now. From the moment I was born until I was 16, he was only earning S$800 to S$1,500,” he said.

On the other hand, his mother mostly stayed at home to care for the family and only took on occasional odd jobs when needed, such as working in coffee shops or helping out in small retail stores.

Growing up, he said money was always tight and the family often lived from one paycheck to the next.

Despite that, his parents still managed to support him all the way through his polytechnic years.

After graduating, he took over paying his own expenses and university fees and eventually established a career in the corporate tech industry.

Now that he has started building his own financial future, he finds himself facing a difficult question: what can he realistically do to help his parents without compromising his own goals?

“They are still working; sadly and honestly, I feel very bad about it. I can’t help much, as I need to care about my future too, so I can’t give the majority of my earnings,” he wrote.

“I invest S$2-3k a month into ETFs (and sometimes random big 7 stocks). So the amount I have left after that and saving is not significant. I’m also saving up for a house with my partner, so I can’t single-handedly do everything as a retirement plan.”

Wanting to make informed decisions rather than simply handing over money, he asked fellow Redditors whether investing on his parents’ behalf could help improve their retirement prospects. Specifically, he wondered if he should work with a financial adviser or build a dedicated ETF portfolio for them himself.

“I hope to get some opinions here!” he added.

“Work on yourself and earn more.”

The post quickly drew numerous responses from Singaporean Redditors.

One commenter pointed out that, unfortunately, in situations like these, the child often becomes “the retirement plan.”

“You are their retirement plan. Instead of asking them to invest, invest in yourself and give them a monthly allowance,” they wrote.

“You need to make sure you are able to fund their retirement expenses once they stop working. Looking on the bright side, they are probably content with a very basic retirement life and won’t need a lot from you.”

Another agreed with this view, saying, “Work on yourself and earn more. Put aside some money for their older age, like for medical expenses, or bring them for meals or short trips or whatever they like.”

A third user, meanwhile, suggested a practical alternative that would not require the son to shoulder the full burden of saving for his parents.

They explained, “If they have a house, they can downgrade to perhaps a 2-room flexi with a short lease and top up CPF life. I would say the monthly payment from CPF life will be enough to get by if they continue living simply.” 

“You can contribute cash monthly to them to ease their burdens or build up an emergency fund for them that is under your control. Since they do not have much savings, most of their assets are locked in the house. Unlock that.”

A fourth echoed this suggestion, writing,  “Since your parents are in their 60s, do consider maximising` CPF life to ensure your parents have a steady monthly stream of income.”

In other news, a domestic helper has claimed online that her new employer expects her to pay for all her own daily essentials, including meals and toiletries, out of her salary.

In an anonymous post shared on Tuesday (May 12) in the Facebook group “SINGAPORE TRANSFER (No Fees/SD), DIRECT HIRE & NEW HELPER,” the helper said she has been working in Singapore for three years and was recently transferred to a new employer after the elderly grandmother she cared for passed away.

Read more: ‘I buy my own food and toiletries’: Maid says employer refuses to provide basic necessities