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ABCs to planning retirement with your parents

Header picture source: Unsplash

This article was not reviewed by Monetary Authority of Singapore (MAS) or any other relevant authorities.

Ahhh… we have come to the age where we need to start fulfilling our roles as sons and daughters of taking care of our parents.

Just like how they took care of us ever since we were born, it is now our turn to do the same.  

Source: imgur

While we may not be able to do what Hua Mulan has done for her father, what we can do (at least) is to start planning retirement with our parents so as to ensure they could retire comfortably and at the same time, protect our future.

But, where and how do I start?

No worries, here are 5 pointers for you to think about!

1.   Discuss with them about their retirement needs

Have a talk and ask your parents how they would like to retire. Of course, bearing in mind that both parties have to be realistic about this (e.g. financial capability, time, opportunities, etc).

Discuss with them how much they need for their monthly living expenses and take into consideration the different sources of income, your family’s expenses, their Retirement Account (RA) and monthly payouts. Is it possible to work out something viable for both?

2.   Set up a joint account (If you have siblings) 

Having known how your parents would like to retire and how much they need per month, you could set up a joint account with your siblings to ease this process as well as the financial stress on one sibling.

3.   Check that they have the necessary insurance policies

Hell Yeah Yes GIF by bubly
Source: GIPHY

As we all know, as one grows older, health inevitably becomes a concern one way or another. Thus, it would be good to ensure that your parents have bought the necessary insurance policies, such as an Integrated Shield Plan, in case of anything. This could save you and your family not only a hefty sum of money, but also overly-anxious minds in times of crises; thus, the earlier you check on this, the better.

4.   Cash top-up their CPF accounts

As you can voluntarily top up your parents’ CPF accounts, you could do this to leverage on our CPF’s interest rates and to eventually allow your parents to receive a higher monthly payout from their RA.

Read more: CPF for Dummies

By doing cash-top ups, you can also enjoy a tax relief (capped at $7,000).

5.   Have them opt in CareShield Life

If you haven’t heard of CareShield Life, it is basically an insurance plan that provides Singaporeans income should they become severely disabled.

Severely disabled = unable to do at least three out of the six activities of daily living (washing, dressing, transferring, mobility, toileting and feeding).

As CareShield Life is payable via Medisave, you could also top up your parents’ Medisave Account (MA).


I know, thinking about our parents’ retirement can seem daunting, but this is the natural process of life.

Rather than avoiding this, wouldn’t it be better to face it bravely so that we can ensure our parents live out their remaining years happily and comfortably with us?

As the above pointers are brief and something to only get the ball rolling, you could engage with your financial adviser to guide you through making those important decisions. You could fill up this form if you don’t know any financial adviser would like to start engaging one!



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