This retirement forecasting tool is available for DBS consumer banking customers born after 1958.
To access Map Your Money,
There are two charts to help you visualise your retirement forecast. One is a projection of your monthly cashflow, the other is a projection of your total assets.
The monthly cashflow chart shows how you will draw down from your projected assets at retirement age to meet your retirement expenses. It consists of the following components:
Your retirement expenses:
We’ll use the desired retirement expenses you provided during onboarding for the projection. Once you’re past your desired retirement age, we’ll project it based on the expenses seen in your Money Out.
Every time you access this retirement forecasting tool, your projection is refreshed to start from the upcoming month.
The total assets chart displays your assets at three key milestones:
Your desired retirement age is the age at which you want to retire. You would have provided this during onboarding. For purposes of our projections, we count it starting from the beginning of the year.
Your life expectancy age, or end of life age, is also something you would have provided during onboarding. For our projection, we count it at the end of the year.
Your Plan & Invest tab has a section called Money In/Out, which shows transactions across your deposit accounts. This includes any current, savings, personal, and joints accounts you may have with DBS.
Money In shows incoming transactions, or money you receive. We use data from here to derive your monthly income.
Money Out shows outgoing transactions from your deposit accounts, and charges to your credit cards. We use data from here to derive your monthly expenses.
You can adjust the values in this section, such as adding in money in and money out items not with DBS to make the projections more accurate.
For our forecast, we’ll calculate an average of your past 12 months’ salary and take this to be your monthly income (what you’ll have) before retirement.
Salary
If you don’t credit salary to a DBS account and haven’t input one manually, we’ll prompt you to enter your monthly salary. This will be taken as your net salary, or take-home pay.
We assume you’ll continue to draw this monthly salary and will start your projection from the upcoming month till one year before your retirement age. We will also apply a growth rate of 3.3% p.a. to your monthly salary for the entire projection period, taking the annualised change in nominal wages from 2015 to 2020 as a guide. (Source: Ministry of Manpower, 2021). You can adjust the rates used under “Plan settings”.
Rental income
If you have a monthly rental income, we assume that you’ll draw the same amount throughout the years, from the upcoming month till end of life. No growth rate is applied.
For our forecast, we’ll calculate an average of your past 12 months’ Money Out transactions excluding those categorised under cash, transfer, investments, and housing. We’ll take this amount as your monthly expenses (what you’ll spend) before retirement.
If you have a DBS housing loan, we’ll count the cash portion of your monthly instalment as part of your expenses till the year your loan matures. Similarly, the CPF portion of your monthly instalments will be deducted from your CPF-OA. If you do not have sufficient balances in your CPF-OA, we will draw down on your cash balances instead.
We assume you’ll continue to incur these monthly expenses and will start your projection from the upcoming month till one year before your financial freedom age. Housing loan instalments aside, an inflation rate of 3.5% p.a. is applied, in line with the proposed 3.5% p.a. increase in the Full Retirement Sum. (Source: CPF). You can adjust the rates used under “Plan settings”.
Your assets forecast is derived using data in your Assets & Liabilities. This includes what you hold with DBS/POSB along with data that you’ve manually input or synced from other banks and government agencies like SGFindex. To make sure your forecast is up-to-date, we refresh your data every time you visit the forecasting tool.
Here’s what goes into your asset forecast:
Our projection is based on the total balance of your accounts seen in your Assets & Liabilities. This includes savings and fixed deposits in Singapore Dollar and foreign currencies across your personal and joint accounts.
If you have a positive monthly cashflow, we’ll add the net amount to your cash balance. Conversely, if you have a negative cashflow, we’ll assume there’s no savings added to your cash balances that month.
By default, your cash balance grows at the deposit interest rate of 0.05% p.a. from today till your end of life. You can adjust the rate used by going to Plan settings.
Our projection is based on selected personal and joint investments as seen in your Assets & Liabilities.
For the following, these fixed rates of returns are applied from today till you reach retirement:
Cash - This is based on the DBS deposit interest rate of 0.05% p.a.
Equities - This is based on the average of the investment rates of returns of 4% p.a. and 8% p.a. Thereafter, cost is deducted. For equities, we assume that your holdings are listed on SGX and do not incur holding costs.
Investment-linked policies - This is based on the average returns over 15 years for the profile of a 40-year old non-smoker male, provided by Manulife (Singapore). It takes into account deduction of policy admin fees, cost of insurance and fund management charges.
ETFs and unit trusts - This is based on the 5-year annualised returns of SGD-denominated funds.
Managed portfolios - This is based on the 5-year annualised returns of underlying funds within the Asia-focused digiPortfolios.
DBS Wealth portfolios - Portfolios in a DBS Wealth Management Account (WMA) may comprise assets of different classes. For a start, we're using an illustrated rate of returns of 6% p.a.
CPF Investment Scheme Ordinary Account (CPFIS-OA) - We’re using the same rate of returns on CPFIS–OA that we use for unit trusts. See above.
Supplementary Retirement Scheme (SRS) investments - We’re using the same rate of returns on SRS investments that we use for unit trusts. See above.
You can adjust the rates used by going to Plan settings.
The projected total maturity value is added to cash in December of the policy maturity year.
For Manulife endowment policies bought through DBS, our projection works like this: if your maturity date takes place
The values above are used for purposes of financial planning with DBS only. It does not take into account outstanding premiums nor loans, and may not be the actual amount that the policy owner receives from Manulife upon policy maturity or surrender of policy at age 65.
(1) For policyholders of Signature Income / Signature Income (II) / ManuIncome Plus who have opted for coupon accumulation: The maturity value used in the projection is estimated assuming that interest is compounded annually. This is different from the actual computation where interest is compounded monthly.
(2) For policyholders of ReadyBuilder, the estimated value does not take into account the change to the policy value when you exercise Premium Freeze option on your policy.
Income stream payouts on your projection follow the start and end dates on your policy. You can see them under “Income stream payout” in your cashflow chart.
There are some exceptions:
The Supplementary Retirement Scheme (SRS) is a voluntary scheme designed to complement CPF in helping you save for retirement. Singaporeans can contribute up to SGD 15,300 a year, and a SGD 80,000 personal income tax relief cap applies.
The following rates of returns are applied from today till you’re 1 year before the statutory retirement age. You can adjust the rates used by going to Plan settings.
We’re using the same rate of returns on SRS investments that we use for unit trusts and ETFs.
We assume you’ll start your SRS withdrawals when you reach the statutory retirement age, which is currently 62. The total projected value of your SRS cash and investments at that point is divided evenly across the withdrawal period which changes depending on how old you are:
The withdrawal amount is deducted month by month, leaving whatever remains to continue growing at the same rate of returns.
Things work a little differently once you hit 72. We assume that you’ve passed the 10-year withdrawal period, and instead of dividing your SRS balances over a payout period, we’ll add the amount to your cash balance.
Learn more about SRS.The Central Provident Fund (CPF) is a compulsory savings scheme designed to help Singapore citizens and permanent residents (PRs) set aside funds for retirement.
The CPF Board has different schemes and rules in place that work together to help members optimise retirement savings. These can be complex to navigate and understand. For the purposes of our forecast, we’ve applied a selection of CPF rules and added some of our own assumptions.
Everyone starts with 3 accounts:
On top of that, there are another 2 accounts:
Our projection is based on everything you have in all your CPF accounts as seen under your Assets & Liabilities, with relevant CPF rules and a few assumptions applied.
There are some basic CPF rules that every CPF member has to follow. We’ve applied these to your forecast, assuming you’re a Singapore citizen or PR, private or public sector non-pensionable employee.
A combination of CPF rules and our own assumptions form the basis of our projection. For purposes of our forecast, we assume
On CPF Life Scheme
On interest earned
On CPFIA rate of returns
Our projection is based on the cash balance and value of investments in your CPFIA account as seen in your Assets & Liabilities. Your CPFIA investments may include fixed deposits, unit trusts, Exchange Traded Funds (ETFs), equities, retail bonds, Singapore Savings Bonds, T-Bills, SGS Bonds, managed portfolios, warrants and structured products—whatever you’ve bought using your CPFIA monies.
The following rates of returns are applied on your CPFIA balances. You can adjust the rates used by going to Plan settings.
We’re using the same rate of returns on CPFIA investments that we use for unit trusts. See how it’s derived.
On additions and deductions from OA, SA & MA
On account limits
On what happens when you reach your retirement age or age 55, whichever is later
On deriving your RA balance at 55 years old (only applicable for those > 55)
On whether there’s a minimum sum to join CPF LIFE
On what can be withdrawn from age 55 and 65
Your projected CPF payouts start in the birth month of your retirement age, and may comprise of payouts from your CPF LIFE and CPF withdrawal savings.
1. Payout from CPF LIFE
The payout amount is derived from the total projected balance in your RA 6 months before you turn 65. We follow the calculations seen on the CPF LIFE Estimator, but our results may differ slightly as our calculations run on our own engine.
2. Payout from CPF withdrawal savingsIf you have balance left in your SA and OA after fulfilling the FRS, CPF Board lets you make withdrawals from age 55. For our forecast, instead of lump sum withdrawals, we’ll work your balance into monthly payouts.
We’ll activate this balance when you reach your desired retirement age, or the payout eligibility age of 55 if your desired retirement age is before 55.
Taking the total projected value in your SA and OA, we divide it evenly across the total number of months between the start of your withdrawal and your end of life into monthly payouts. Payouts are taken out of the balance one year at a time, leaving whatever remains to continue growing at the same rate of returns.
You can learn about CPF LIFE and CPF Schemes at the CPF website.