Why you should start investing in your 20s and 30s for your retirement – and how

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A safe investment option is to make automated top-ups to your special CPF (SA) account, which guarantees a return of 4 to 5% per year. Putting in S $ 7,000 a year – spread over monthly top-ups of around S $ 600 – would currently allow you to take full tax relief. (Effective January 1, 2022, the tax break will be S $ 8,000 per calendar year for cash top-ups to Special, Retirement, and MediSave accounts.)

Another option is Singapore Savings Bonds (SSB), which are issued and guaranteed by the Singapore government. They are risk free and investors can exit at any time with the total capital intact, Ong said.

But the interest rate on SSBs is generally low; they are currently reporting less than 2 percent.

SSBs are a good way to diversify, she said, “but I wouldn’t advise you to invest all your money in them”.

Before investing, it’s important to make sure you’re covered in an emergency and adequately protected by insurance, Tan said.

So, first of all, make sure you have about three to six months of spending in your emergency fund, which you can easily tap into in the event of events like loss of income. Next, when it comes to insurance, Tan said it’s important to remember his goal: protection, not investment.

So, he said, get enough coverage for as low a cost as possible. A term policy would suffice – it focuses only on protection and is generally more affordable – and all the money saved can then be invested.


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