What is FutureMe all about?
FutureMe aims to help you:
Based on your relationship with us, we have provided some estimated figures for you to begin that journey towards your desired retirement lifestyle.
The results of FutureMe are just estimates and do not take into account your specific investment objectives, financial situation or your particular needs and circumstances.
What is required to engage with FutureMe?
You need to be a DBS/POSB internet banking user.
How does FutureMe work?
FutureMe is designed to help you estimate:
M > L → S (Monthly Income Surplus)
M < L → G (Monthly Income Gap)
How do I estimate my monthly retirement lifestyle expenses and my monthly retirement income?
There are three simple steps for you to follow:
Step 1: Tell us more about yourself
Step 2: Estimate your monthly retirement lifestyle expenses (L)
Step 3: Estimate your monthly retirement income (M)
To determine if you have a Monthly Income Surplus or a Gap, we will use your monthly expenses (L) minus your monthly income (M) in your retirement years.
How can FutureMe help me in Retirement Planning?
FutureMe aims to help you visualise your desired retirement lifestyle and give you a glimpse of your desired lifestyle and the money needed to support this lifestyle. You may use FutureMe to track the progress you have made towards closing your Monthly Income Gap. This can be done by updating your retirement lifestyle expenses and amounts set aside for retirement. Our suggestion is for you to use FutureMe periodically, say, every 6 months or a year to check on your progress.
To make a financial decision, it is prudent to get independent financial advice or talk to our Wealth Planning Managers.
What are the assumptions made in computing my monthly retirement lifestyle expenses and my monthly retirement income?
The following assumptions have been made in the calculations:
Note that after accounting for inflation and growth in savings and investments across each year, there may be a difference in the values of FutureMe Lifestyle Expenses and FutureMe Income due to rounding differences.
Which accounts and credit cards do you use to collate my expenses? Is spend from my corporate cards and supplementary credit cards included?
Expenses are collated from spend charged to all credit cards and savings/current accounts maintained in your name. Spend on your supplementary credit cards and corporate cards are also included.
Do you include expenses on accounts which are in joint names with one or more individuals?
Expenses from joint accounts (can be Joint Alternate with anyone to sign or Joint All where all are needed to sign) are included.
How do you derive the average monthly expenses?
On your first engagement with FutureMe, all expenses in the preceding 6 months are added up and then divided by 6 (even if there is no spend in some months) to derive the average monthly expenses.
How often will the average monthly expenses be updated/refreshed?
The average monthly expenses will not be updated/refreshed automatically. You can update the expenses as you deem necessary.
How can I update my average monthly expenses?
You can update by changing your expenses in FutureMe Lifestyle.
Expense Categories
There are 6 categories of expenses:
What are household expenses?
Household expenses include expenses relating to:
What comes under food and dining?
Food and dining include expenses incurred at bars, coffee shops, restaurants, and fast food restaurants.
What expenses are considered ‘indulgences’?
‘Indulgences’ include:
What are transportation expenses?
Transportation expenses include taxi fares, MRT fares, petrol/gas, parking fees, vehicle maintenance costs, car loan instalment payments.
What expenses come under kids and family?
These include expenses relating to children such as tuition fees, enrichment fees, toys, clothing, etc.
Under the category of loans, what are the loans which are included?
Only housing loans are included.
General
This section is intended for you to list down all sources of funds that you have set aside or will be setting aside for your retirement. These sources include the following:
What is CPF LIFE?
CPF LIFE is a government scheme that provides you with a monthly payout from age 65 for as long as you live. Your CPF LIFE payout at age 65 will depend on how much your Retirement Sum is. The Retirement Sum is the balance in your Retirement Account.
What is a Retirement Account?
At age 55, a Retirement Account will be created and savings from your Special and Ordinary Accounts will be automatically transferred to this Retirement Account.
The maximum amount that will be transferred is equal to the Full Retirement Sum. However, you have the option to top up the amount to the Enhanced Retirement Sum.
CPF Retirement Sum and CPF LIFE Payout
The CPF Retirement Sum refers to the amount of savings you have set aside in your Retirement Account to receive CPF LIFE payouts when you turn 65 years old.
| Basic Retirement Sum | Full Retirement Sum | Enhanced Retirement Sum | |
|---|---|---|---|
| Age 55 in 2016 | $80,500 | $161,000 | $241,500 |
| Age 55 in 2017 | $83,000 | $166,000 | $249,000 |
| Age 55 in 2018 | $85,500 | $171,000 | $256,500 |
| Age 55 in 2019 | $88,000 | $176,000 | $264,000 |
| Age 55 in 2020 | $90,500 | $181,000 | $271,500 |
| Monthly Payout* | $700 - $750 | $1,280 - $1,380 | $1,860 - $2,000 |
* Payout figures are estimates, based on the CPF LIFE Standard Plan and computed as of 2017.
Source: CPF Board
For more information about CPF LIFE, please click below:
https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/cpf-life
Supplementary Retirement Scheme (SRS)
What is SRS?
SRS is a voluntary, tax deferment scheme launched by the Singapore government to encourage people to save for retirement. You will enjoy tax relief equivalent to the contribution amount when you make contributions to SRS. The annual contribution limit as of 1 Jan 2016 is S$15,300 for Singaporeans/PRs and S$35,700 for foreigners.
For more information, please click below:
I have a SRS Account with DBS. Will the cash balances and invested amount in my account be shown in my FutureMe?
Yes, cash balances and invested amount (at cost) will be shown in your FutureMe. This includes subsequent changes in cash balances and invested amount.
I have a SRS Account but it is not with DBS. How do I include the cash balances and invested amount in FutureMe?
You just need to input the cash balances and invested amount as provided in the SRS screen. Similarly, when there are any changes, you may update the figures accordingly.
I decide to open a SRS account with DBS after engaging with FutureMe. Will the invested amount and uninvested cash (if any) be updated to my FutureMe?
Yes, your invested amount and uninvested cash (if any) will be updated to FutureMe.
I plan to retire at age 60. This is before I can withdraw my SRS funds without paying a penalty. How does this affect the payout amount at my retirement age?
As SRS funds can only be withdrawn without penalty at age 62, the payout amount at age 60 will not include SRS funds.
What is classified as Other Income?
Other Income includes income from the following:
Income
This refers to rental income, allowance from children, income from part-time work etc.
Investment
This refers to investments which you intend to set aside for retirement, e.g. investment portfolio (Shares, ETFs, REITS, Bonds, Unit Trusts) and sale of property to support your retirement lifestyle.
Please exclude investments using CPF and SRS funds.
Insurance
This refers to an endowment insurance plan that gives you a lump sum at the end of a specific term or on its maturity or upon death.
The insurance premium can be paid at regular intervals (such as monthly, quarterly, half-yearly or yearly).
Retirement Income Plan
This refers to a life insurance plan where you receive a regular stream of income for as long as you live or for a fixed period of time during your retirement years such as 10 years, 15 years, 20 years etc.
Most plans let you decide when you would like to start receiving the payout. For example, you can decide to start receiving the monthly payout at age 55, 60, 65, 70, etc.
The premium can be paid as a lump sum or at regular intervals (such as monthly, quarterly, half-yearly or yearly).
What does the FutureMe Summary Dashboard show?
The FutureMe Summary Dashboard shows your monthly retirement lifestyle expenses and the funds you may have to support this lifestyle and the resulting income surplus or gap.
At this juncture, if you have a monthly income gap, you may wish to adjust your lifestyle expenses to a more manageable level in keeping with the funds you have for retirement. Alternatively, you may want to allocate more funds to support your retirement lifestyle.
After you have completed FutureMe, you have a few options to help you think about or plan for retirement. They are:
Planning with Supplementary Retirement Scheme (SRS)
For those who do not have a SRS Account, you may want to open a SRS Account and make contributions to enjoy tax relief while saving for your retirement. To learn more about SRS, please refer to go.dbs.com/sg-srs
For those who already have a SRS Account and have at least SGD $10,000 uninvested cash in the account, you may want to learn more on how to make your SRS funds work harder. To learn more, please click here.
Tips For You
If you have an income gap, you may wish to look for alternatives to reduce your lifestyle costs. If you have an income surplus, you may wish to consider drawing up a plan to transfer your wealth to your next generation.
Speak to a Wealth Planning Manager
You may make an appointment to talk to a Wealth Planning Manager on your topic of interest. Our Wealth Planning Manager will contact you within 3 business days.Various product categories are suggested to work your money harder. These are:
If you have indicated that you have set aside savings for your retirement, whether as a lump sum or regular monthly savings, this amount is considered available for investment. The system will simulate using this amount fully to invest in each of the suggested products to illustrate the returns you may get from the investment.
You are also able to view your revised income gap/surplus by changing the amount. The revised amount is not reflected in FutureMe. Should you wish this revised amount to be updated to FutureMe, please go to FutureMe Income.
If you have not indicated any savings for your retirement, whether as a lump sum or regular monthly savings, you may still view your revised income gap/surplus by manually keying in an amount. The system will simulate investing this full amount in each of the suggested products to illustrate the returns you may get from the investment. The input amount is not reflected in FutureMe. Should you wish this input amount to be updated in FutureMe, please go to FutureMe Income.
Important Note:
The investment suggestions are purely for illustration purposes only and do not take into account your specific investment objectives, investment risk profile, financial situation or particular needs and circumstances. All investments carry risk of loss. Generally, the higher the return, the higher the risk. We are not acting as financial advisors and do not assume liability for the investment suggestions and the illustrations provided in this engagement or for your reliance on the investment suggestions and illustrations. Past performance of the investment suggestions is not indicative of the future performance of the investments.
If you are interested to find out more, you may wish to seek separate independent financial advice or contact our Wealth Planning Managers or walk in to any of our branches to find more.
Suggestions for investing your lump sum savings
Lump sum investment in a Retirement Income Plan
What is a Retirement Income Plan?
A retirement income plan is an insurance plan where you receive a regular stream of income for as long as you live or for a fixed period of time during your retirement years such as 10 years, 15 years, 20 years etc.
Most plans let you decide when you would like to start receiving the payout. For example, you can decide to start receiving the monthly payout at age 55, 60, 65, 70, etc.
The premium can be paid as a lump sum or at regular intervals (such as monthly, quarterly, half-yearly or yearly).
What are the eligibility criteria to invest in a lump sum retirement income plan?
How do you derive the total lump sum?
This is derived by adding the lump sum cash savings and the uninvested cash balance in your SRS Account.
What are the factors considered in calculating the monthly payout and rate of return?
The monthly payout and rate of return are derived by taking into account the following:
What is the basis for computing the “Reduce Income Gap By” and “Revised Income Gap”?
The original income gap/surplus assumes that your lump sum savings earn an interest rate of 0.05% per annum. Investing in a retirement income plan gives you a higher rate of return. The difference between these two rates of return on your lump sum savings will help to reduce your income gap or increase your income surplus. This difference is known as “Reduce Income Gap By” or “Increase Income Surplus By”.
The “Revised Income Gap/Surplus” will be the new reduced Income gap/surplus should you decide to invest in retirement income plans.
Lump sum investment in Equity
What are Equities?
Equities refer to the stocks of a company. Buying its stocks makes you a shareholder of that company. There are two ways to earn from stocks. The first is through capital appreciation, which means your stocks could rise in value if the company performs well. The second way is through dividends, when the company shares a slice of its profits with you as cash or additional stocks. The value of a stock could increase or decrease depending on market conditions and the company’s performance.
What are the eligibility criteria to invest a lump sum in equities?
Aged 18 years old and above.
How do you derive the total lump sum?
This is derived by adding the lump sum cash savings and the uninvested cash balance in your SRS Account.
How is the monthly payout amount calculated?
Based on the lump sum invested, indicative rate of return and number of years invested, your investment will be worth a particular amount if liquidated at the point of retirement. This amount, the ‘accumulated amount’, divided by the total number of months in retirement is the monthly payout amount.
What are the factors considered in calculating the accumulated amount?
The accumulated amount is derived by taking into account the following:
*Data from mas.gov.sg
What is the basis for computing the “Reduce Income Gap By” and “Revised Income Gap”?
The original income gap/surplus assumes that your lump sum savings earn an interest rate of 0.05% per annum. Investing in equities gives you a higher rate of return. The difference between these two rates of return on your lump sum savings will help to reduce your income gap or increase your income surplus. This difference is known as “Reduce Income Gap By” or “Increase Income Surplus By”.
Lump sum investment in Unit Trust
What are unit trusts?
A Unit Trust invests a pool of money, collected from a number of investors, in a range of assets. Successful investments in the assets add value to the fund and their returns are then distributed back to investors. Unit Trusts commonly invest in stocks or bonds or a mix of both. To reduce risks, these investment assets are diversified in geographical markets and industry types.
What are the eligibility criteria to invest a lump sum in unit trusts?
How do you derive the total lump sum?
This is derived by adding the lump sum cash savings and the uninvested cash balance in your SRS Account.
How is the monthly payout calculated?
Based on the lump sum invested, indicative rate of return and number of years invested, your investment will be worth a particular amount if liquidated at the point of retirement. This amount, the ‘accumulated amount’, divided by the total number of months in retirement is the monthly payout amount.
What are the factors considered in calculating the accumulated amount?
The accumulated amount is derived by taking into account the following:
* This is based on the average yield of three typical Asia Pacific balanced funds from Sep 2016 to Sep 2017.
Source: Morningstar & Bloomberg
What is the basis for computing the “Reduce Income Gap By” and “Revised Income Gap”?
The original income gap/surplus assumes that your lump sum savings earn an interest rate of 0.05% per annum. Investing in unit trusts gives you a higher rate of return. The difference between these two rates of return on your lump sum savings will help to reduce your income gap or increase your income surplus. This difference is known as “Reduce Income Gap By” or “Increase Income Surplus By”.
The “Revised Income Gap/Surplus” will be the new reduced Income gap/surplus should you decide to invest in unit trusts.
Lump sum investment in S$ Fixed Deposit
What are S$ fixed deposits?
A S$ fixed deposit allows you to save a sum of cash with a bank for a period of time (e.g. 1 month to 12 months etc) and in return you are paid an interest. The interest rate payable depends on the tenor of the deposit.
What are the eligibility criteria to save a lump sum in S$ fixed deposits?
How do you derive the total lump sum?
This is derived by adding the lump sum cash savings and the uninvested cash balance in your SRS Account.
How is the monthly payout calculated?
This is based on the accumulated amount you expect to receive at your retirement age, divided by the total number of months you are in retirement.
What are the factors considered in calculating the accumulated amount?
The accumulated amount is derived by taking into account the following:
What is the basis for computing the “Reduce Income Gap By” and “Revised Income Gap”?
The original income gap/surplus assumes that your lump sum savings earn an interest rate of 0.05% per annum. Saving in a S$ fixed deposit gives you a higher rate of return. The difference between these two rates of return on your lump sum savings will help to reduce your income gap or increase your income surplus. This difference is known as “Reduce Income Gap By” or “Increase Income Surplus By”. The “Revised Income Gap/Surplus” will be the new reduced Income gap/surplus should you decide to save in S$ fixed deposits.
Suggestions for investing your monthly savings
Investment of monthly savings in a Retirement Income Plan
What is a retirement income plan?
A retirement income plan is an insurance plan where you receive a regular stream of income for as long as you live or a fixed period of time during your retirement years such as 10 years, 15 years, 20 years etc.
Most plans let you decide when you would like to start receiving the payout. For example, you can decide to start receiving the monthly payout at age 55, 60, 65, 70 etc.
The premium can be paid as a lump sum or at regular intervals (such as monthly, quarterly, half-yearly or yearly).
What are the eligibility criteria to invest your monthly savings in a retirement income plan?
How is the monthly savings amount derived?
It is the amount that you have indicated that you are saving monthly for retirement.
What are the factors considered in calculating the monthly payout and rate of return?
The monthly payout and rate of return are derived by taking into account the following:
What is the basis for computing the “Reduce Income Gap By” and “Revised Income Gap”?
The original income gap/surplus assumes that your monthly savings earn an interest rate of 0.05% per annum. Investing in a retirement income plan gives you a higher rate of return. The difference between these two rates of return on your monthly savings will help to reduce your income gap or increase your income surplus. This difference is known as “Reduce Income Gap By” or “Increase Income Surplus By”.
The “Revised Income Gap/Surplus” will be the new reduced Income gap/surplus should you decide to invest in retirement income plans.
Investment of monthly savings in an Endowment Plan
What is an endowment plan?
An endowment plan is a type of life insurance plan which pays you a lump sum at the end of a fixed term or upon maturity of the policy or upon death.
The insurance premium can be paid at regular intervals (such as monthly, quarterly, half-yearly or yearly).
What are the eligibility criteria to invest your monthly savings in an endowment plan?
How is the monthly savings amount derived?
It is the amount that you have indicated that you are saving regularly for retirement.
How is the monthly payout calculated?
This is based on the maturity amount you expect to receive at the applicable payout age divided by the total number of months from the payout age to 80 years old.
What are the factors considered in calculating the maturity amount?
This maturity amount is derived taking into account the following:
What is the basis for computing the “Reduce Income Gap By” and “Revised Income Gap”?
The original income gap/surplus assumes that your monthly savings earn an interest rate of 0.05% per annum. Investing in an endowment plan gives you a higher rate of return. The difference between these two rates of return on your monthly savings will help to reduce your income gap or increase your income surplus. This difference is known as “Reduce Income Gap By” or “Increase Income Surplus By”.
The “Revised Income Gap/Surplus” will be the new reduced Income gap/surplus should you decide to invest in endowment plans.
Investment of monthly savings in an Investment-Linked Plan
What is an Investment-Linked plan?
An investment-linked plan is a type of insurance plan that offers protection against death and/or total and permanent disability, including investment benefits. Premiums paid are used for two purposes, to give you protection as well as to invest in unit trust funds of your choice, helping to generate a stream of income.
What are the eligibility criteria to invest your monthly savings in an investment-linked plan?
How is the monthly savings amount derived?
It is the amount that you have indicated that you are saving regularly for retirement.
What are the factors considered in calculating the monthly payout and rate of return?
This monthly payout and rate of return are derived by taking into account the following:
Is there a surrender value payable at age 80? If yes, what are the factors considered in calculating this value?
You may receive an additional lump sum at the end of the policy term which is assumed to be age 80. The actual payout depends on the performance of the underlying funds you have invested. For the purpose of illustration of the surrender value, the fund performance is assumed to be 8% per annum before charges and cost of insurance.
What is the basis for computing the “Reduce Income Gap By” and “Revised Income Gap”?
The original income gap/surplus assumes that your monthly savings earn an interest rate of 0.05% per annum. Investing in an investment-linked plan gives you a higher rate of return. The difference between these two rates of return on your monthly savings will help to reduce your income gap or increase your income surplus. This difference is known as “Reduce Income Gap By” or “Increase Income Surplus By”.
The “Revised Income Gap/Surplus” will be the new reduced Income gap/surplus should you decide to invest in investment-linked plans.
Investment of monthly savings in Equity
What are equities?
Equities refer to the stocks of a company. Buying its stocks makes you a shareholder of that company. There are two ways to earn from stocks. The first is through capital appreciation, which means your stocks could rise in value if the company performs well. The second way is through dividends, when the company shares a slice of its profits with you as cash or additional stocks. The value of a stock could increase or decrease depending on market conditions and the company’s performance.
What are the eligibility criteria to invest your monthly savings in equities?
Aged 18 years and above.
How is the monthly savings amount derived?
It is the amount that you have indicated that you are saving regularly for retirement.
How is the monthly payout calculated?
Based on the monthly savings invested, indicative rate of return and number of years invested, your investment will be worth a particular amount if liquidated at the point of retirement. This amount, the ‘accumulated amount’, divided by the total number of months in retirement is the monthly payout amount.
What are the factors considered in calculating the accumulated amount?
The accumulated amount is derived by taking into account the following:
*Data from mas.gov.sg
What is the basis for computing the “Reduce Income Gap By” and “Revised Income Gap”?
The original income gap/surplus assumes that the monthly savings earn an interest rate of 0.05% per annum. Investing in equities gives you a higher rate of return. The difference between these two rates of return on your monthly savings will help to reduce your income gap or increase your income surplus. This difference is known as “Reduce Income Gap By” or “Increase Income Surplus By”.
The “Revised Income Gap/Surplus” will be the new reduced Income gap/surplus should you decide to invest in equities.
Investment of monthly savings in Unit Trust
What are unit trust funds?
A Unit Trust invests a pool of money, collected from a number of investors, in a range of assets. Successful investments in the assets add value to the fund and their returns are then distributed back to investors. Unit Trusts commonly invest in stocks or bonds or a mix of both. To reduce risks, these investment assets are diversified in geographical markets and industry types.
What are the eligibility criteria to invest your monthly savings in unit trusts?
How is the monthly savings amount derived?
It is the amount that you have indicated that you are saving regularly for retirement.
How is the monthly payout amount calculated?
Based on the monthly savings invested, indicative rate of return and number of years invested, your investment will be worth a particular amount if liquidated at the point of retirement. This amount, the ‘accumulated amount’, divided by the total number of months in retirement is the monthly payout amount.
What are the factors considered in calculating the accumulated amount?
The accumulated amount is derived by taking into account the following:
* This is based on the average yield of three typical Asia Pacific balanced funds from Sep 2016 to Sep 2017.
What is the basis for computing the “Reduce Income Gap By” and “Revised Income Gap”?
The original income gap/surplus assumes that the monthly savings earn an interest rate of 0.05% per annum. Investing in unit trusts gives you a higher rate of return. The difference between these two rates of return on your monthly savings will help to reduce your income gap or increase your income surplus. This difference is known as “Reduce Income Gap By” or “Increase Income Surplus By”.
The “Revised Income Gap/Surplus” will be the new reduced Income gap/surplus should you decide to invest in unit trusts.