Preparing for Retirement in Singapore: A Legal Checklist

Last updated on April 1, 2026

Retirement marks a significant life transition with a major pivot from growing your wealth to protecting it. While many may focus solely on the total amount of their savings, having the right legal arrangements in place is also important to help protect and preserve your wealth and assets.

This article serves as a comprehensive checklist to help you navigate the legal essentials of retirement planning. It covers the following steps:

1. Review and Update Your Will

To ensure your will reflects your current wishes

A will is a legal document that provides instructions on how your assets are to be distributed after you pass away.

Reviewing and updating your will is a critical step in your retirement checklist, as it ensures the assets that you have spent decades growing are distributed exactly how you intend. Without updates, your estate could be distributed in a way that no longer reflects your current wishes, even if you have verbally expressed them.

Consider this scenario: When Mr Lim first drafted his will ten years ago, his children were both starting their careers. To be fair to them both, he instructed in his will that his HDB flat was to be sold upon his passing and the proceeds were to be split 50/50 between his son and daughter.

As the years passed, Mr Lim began to suffer from health issues and has since retired. His son moved overseas for work, while his daughter, Sarah, moved back into the family flat to become his primary caregiver. She spent her time managing his medical appointments and daily needs. Grateful for her sacrifice, Mr Lim told Sarah repeatedly that the house would be hers when he passed.

However, Mr Lim passed away without updating his ten-year-old will.

Legally, written instructions in a will take absolute precedence over verbal promises. Despite knowing their father’s final wishes, which were expressed verbally, the son was facing financial difficulties abroad and insisted on his legal share of the flat’s value. Since Mr Lim’s will remained unchanged, Sarah had to sell the home she was promised by Mr Lim to pay out her brother’s share.

To ensure your will reflects your current financial reality

Retirement often involves a significant shift in your asset profile. You may have downsized your family home, received large insurance payouts, or restructured your investment portfolio to focus on dividends. Hence, it is important that your will reflects your current financial reality to avoid leaving your loved ones with legal headaches.

Ensure that your asset list, including bank accounts, shares, and personal valuable items such as jewellery, is up to date in your will. If you wish, you may also review your beneficiaries (i.e. the person(s) or organisation(s) named to receive your inheritance) and modify who you want to distribute your assets to.

Adding a residuary clause to your will

A residuary clause acts as a helpful safety net to ensure that your will is complete. By including one, you make sure that any assets not specified, or any assets that change over time, are still passed on to your loved ones according to your wishes, rather than being distributed based on standard legal guidelines.

Why is this crucial for a retiree? When you are working, your assets are often stable, such as owning a home and having one main savings account. However, retirement is usually a time of high asset turnover. This means that as a retiree, you might, for example:

Sell your 5-bedroom flat to downsize to a 3-bedroom unit,
Close old investment accounts and open new ones for more suitable rates, and/or
Liquidate stocks to fund your retirement lifestyle, leaving the leftover balance in a new savings account.

Note that if your house is held in joint tenancy, it goes automatically to the surviving owner and bypasses any wishes stated your will entirely.

Consider this scenario: Your will states, “I give my house at 123 Orchard Road to my daughter.” If you sell that house later in life to move into a smaller flat, that specific gift will no longer be valid, because the house no longer exists in your estate. Without a backup plan, the money from that sale might not go to your daughter at all.

However, by adding a residuary clause that says, “I leave the rest of my estate to my daughter,” you create a link between your potentially changing assets and your intended beneficiary. Even though the specific gift of 123 Orchard Road is now invalid, the cash from the sale of the house falls into the rest of the estate. As a result, your daughter would still receive the value of your assets, ensuring that she is still included in your inheritance.

Without a residuary clause, your assets that are not mentioned at the time of executing your will may become unallocated. In such cases, your unallocated assets will be distributed according to the Intestate Succession Act. This could mean:

Your money goes to a relative you did not want to include,
Your family may have wait longer as the Public Trustee sorts out the distribution, and
The Intestate Succession Act will split the money in fixed percentages, even if you may have wanted one person to have a higher percentage.

Reviewing an executor

Your executor is the person who manages your estate.

Since you are entering retirement, ensure your chosen executor is still willing and in relatively good health to handle this responsibility. It is often practical to choose someone younger than yourself or a professional executor (e.g. a law firm).

Recent life changes

It is also important to note that entering a new marriage typically cancels any will you previously made. If you remarry later in life, writing a new will ensures that your updated intentions for your current spouse and children are legally clear and protected.

For more details on changing or writing a new will, please refer to our article, [How can I change my will].

For further guidance, please consult a wills lawyer who will ensure the language in your will is clear with no room for interpretation, and that your will complies with the formalities of the Wills Act. This avoids cases where vague wording leads to drawn-out conflicts.

Protecting heirs with a testamentary trust

Retirement is also a time to consider your heirs’ readiness to manage your inheritance. Under a will, you may consider appointing a trustee (under a trust) to manage assets for your beneficiary over a period of time, rather than giving the full lump sum to the beneficiary. In this context, a trustee is a person or professional firm responsible for managing and protecting your assets held in the trust, until the beneficiary is eligible to receive them.

You may consider setting up a trust to provide specific protections that are beyond the powers of a will. For instance, a trust can ensure long-term care for dependents with special needs, protect the interests of minor children, or safeguard assets for heirs who may struggle with debt or financial management. Additionally, trusts are often used by families who wish to avoid the delays of the probate process, allowing for a smoother and faster transfer of assets. Probate is a court process that validates your will and gives your executor the legal power to manage your assets.

Consider this scenario: Ms Tan wants to leave $200,000 to her 10-year-old grandson. Under Singapore law, he would typically be entitled to the full amount once he reaches the legal age of majority at 21. Concerned that, even at 21 years old, he may be too impulsive to manage such a large sum, she uses her will to create a Testamentary Trust.

Ms Tan appoints a trustee to manage the funds, with instructions to provide only for the grandson’s education and living expenses until he reaches age 25. This testamentary trust allows Ms Tan to specify exactly how her assets are to be used, ensuring her capital is preserved for his long-term benefit.

You may even let your trustee pay out parts of the actual lump sum for the beneficiary where the trustee deems appropriate. This lets the trustee decide and manage how much the beneficiary should receive instead of waiting for a specific date or event.

You may wish to consult a trust lawyer, who can assist you in creating a testamentary trust under a will.

Finally, although your will covers the distribution of your personal property, it cannot distribute your CPF savings. When reviewing your will, you must also check your CPF Nomination (Step 3) to ensure that your entire financial portfolio is accounted for.

2. Understand CPF Retirement Schemes

As your largest retirement asset, your Central Provident Fund (CPF) savings are the foundation of your golden years. Understanding how these funds transition from your savings to form a significant part of your retirement income (for most individuals) is the most vital part of your retirement checklist.

By planning early, you can decide how much monthly allowance you need and ensure there are no income gaps when you stop working.

Why planning your payouts matters

Before diving into the numbers, it is crucial to understand the timing of your retirement. On 1 July 2026, the statutory retirement age in Singapore will change to 64, but the Payout Eligibility Age (PEA) for CPF remains fixed at 65.

This means that if you stop working at 64, you will have a one-year gap before CPF payouts begin. Your checklist should include bridging finances (such as personal savings or dividends) to cover your expenses for that year.

You can also choose not to start your payouts at 65; for every year you defer your payouts (up to age 70), your monthly amount increases by up to 7%, by way of a deferment bonus.

When you pass away, any unused CPF LIFE principal and your remaining RA balance are paid to your nominees in cash. However, the interest earned on your CPF LIFE premium remains in a collective ‘Lifelong Income Fund’. This community pool ensures that all members continue to receive lifelong payouts, even if they outlive their personal balances.

What happens at age 55?

When you turn 55, CPF creates a Retirement Account (RA) for you. This account is built by merging savings from your Ordinary Account (OA) and Special Account (SA).

The SA is closed at this stage, and the combined funds in your RA are used to create a financial retirement plan that pays you a monthly income for life.

The amount you have in your RA at age 55 determines your future lifestyle. In 2026, there are three target sums you can aim for:

Retirement Sum	Savings Required (by age 55)	Estimated Monthly Payout	Most Suitable For
Basic (BRS)	$110,200	~$950	Homeowners who have a property lease lasting until they are 95.
Full (FRS)	$220,400	~$1,780	Stable, comfortable retirement without relying on revenue.
Enhanced (ERS)	$440,800	~$3,440	If you want the highest possible monthly income (capped at 4x the BRS).

Comparing the two main retirement schemes

Depending on your age and account balance, you will fall into one of two schemes.

Feature	CPF LIFE	Retirement Sum Scheme (RSS)
Who is it meant for?	Born 1958 or later (with min. $60,000 in RA)	Born before 1958 OR those with <$60,000 in RA
Payout Duration	For life	Until your account is empty or you turn 90
Main Benefit	Peace of mind that you will not outlive your savings	Simple, direct withdrawal from your RA

Choosing your CPF LIFE plan

At age 65, CPF LIFE members choose between three payout styles:

Standard: Receive stable and consistent payouts for life.
Escalating: This starts 20% lower than the standard style, but increases by 2% every year to help you keep up with the rising cost of inflation.
Basic: Lower payouts now, but it leaves a larger inheritance for your family later.

3. Make a CPF Nomination

In Singapore, your CPF savings do not form part of your estate and cannot be covered by a will. This is a protection under the Central Provident Fund Act to ensure that your savings are shielded from creditors and go directly to your family.

As you finalise your retirement checklist, making or updating a CPF Nomination is the only way to ensure that your hard-earned retirement funds reach the loved ones you want to protect. In this context, a nominee is a person that you specifically designate to receive your CPF savings.

It is best practice to review your CPF nomination annually or whenever a major life event occurs, such as retirement, marriage, divorce, or the birth of a child. Regular reviews ensure your savings are always directed to the right people as your family circumstances evolve.

Why retirees should make a nomination

As a retiree, your CPF accounts (including your Retirement Account and unused CPF LIFE premiums) often represent your largest pool of liquid cash.

If you do not make a nomination:

Your funds are handed to the Public Trustee’s Office (PTO), which charges a compulsory fee to distribute the money. For example, for a $100,000 balance, this fee is approximately $834. Making a CPF nomination is free and avoids needing to pay this fee.
Distributions via the PTO can take over 6 months as they verify family links. A direct nomination may pay out within 17 working days.
The Intestate Succession Act follows a strict hierarchy that prioritises spouses and children. For instance, if you have children, the law automatically excludes your parents from receiving any share of your estate or un-nominated CPF, regardless of your personal intentions to support them.

For a comprehensive guide on the different types of nominations and more information on how to make a CPF Nomination, please refer to our article: [A Guide to CPF Nominations in Singapore].

Critical rules for your retirement checklist

Since retirement is a long-term journey, you must be aware of how significant life events can affect your nomination:

Your nomination includes your Ordinary, Special, Medisave, and Retirement Accounts, plus any unused CPF LIFE premiums. It does not cover properties bought with CPF or CPFIS investments; those follow your will instead.
If you remarry during retirement, your existing nomination is automatically revoked. You must make a new one after the wedding, even if you want the beneficiaries to stay the same.
Unlike marriage, a divorce does not cancel your nomination. If you had nominated a spouse and later divorced that spouse, they will still receive your money unless you manually update your nomination.

4. Make a Lasting Power of Attorney and an Advance Medical Directive

When planning for and transitioning into retirement, it is important to be mindful of your long-term health. As you age, your health becomes more important, as conditions such as dementia, or the progression of chronic illnesses, can sometimes affect the ability to communicate choices clearly.

Creating a Lasting Power of Attorney (LPA) and an Advanced Medical Directive (AMD) provides your loved ones with the clarity and confidence needed to carry out your personal wishes. By defining your preferences now, you remove the burden of uncertainty and prevent family members from having to make difficult decisions under pressure. Ultimately, these documents ensure your future care is guided by your own instructions, offering both you and your family greater peace of mind.

Lasting Power of Attorney (LPA)

An LPA is a legal document where you appoint one or more trusted people, called Donees, to make decisions for you if you lose mental capacity to do so.

How would this fit into your retirement strategy? In your retirement years, you would want to ensure your healthcare and daily expenses are managed smoothly. Under an LPA, you can decide exactly how your Donees should act:

Jointly: They must agree on every decision, providing a system of checks and balances, or
Jointly and Severally: They can act independently, providing flexibility if one Donee is travelling or unavailable.

If you only appoint one Donee, it is highly recommended to appoint a Replacement Donee. This ensures that if your primary Donee can no longer look after you, your retirement funds do not end up frozen while your family applies for a court order.

From 1 April 2026, LPA Form 1 applications will be free of charge for all Singapore citizens.

For a guide on the different types of LPAs and the step-by-step registration process, you can refer to our detailed article on LPAs, [Make a lasting power of Attorney in Singapore].

For further guidance, you may also consult an LPA lawyer, who will assist you in formalising your legal safeguards in accordance with the Mental Capacity Act.

Advance Medical Directive (AMD)

While an LPA focuses on who will make decisions for you, the AMD is a legally binding document that informs your doctors if you do not want extraordinary life-sustaining treatment to prolong your life if you become terminally ill and unconscious. Your AMD only becomes effective once a panel of three doctors, including two specialists, all certify that you are terminally ill.

Discussing an AMD while you are healthy and making this decision during your retirement planning means that in the event of a medical crisis, the weight of the decision is taken off your loved ones’ shoulders.

To understand the specific legal requirements and how to witness an AMD, please see our article on AMDs, [Advance medical directives in Singapore].

5. Consider Your Healthcare Coverage

In planning for your retirement, your health is just as important of an investment as your personal assets. In managing your healthcare coverage, you can make it more likely that medical costs do not impact your retirement savings in the future.

This can include understanding the entitlements and payouts under government schemes such as MediShield Life and CareShield Life, as well as reviewing your private insurance policies.

Government schemes

The Singapore government provides national schemes that can help your retirement planning. These include:

MediShield Life, which is a mandatory health insurance plan that provides lifelong protection against large hospital bills, regardless of your health status.

CareShield Life, which complements MediShield Life as a long-term care insurance scheme. It is designed to provide monthly cash payouts for life if you develop a severe disability, which is important for retirement planning as the risk of needing such care as a backup increases with age.

Private insurance policies

You may also choose to enhance your basic coverage from government schemes through private Integrated Shield Plans. They are managed by private insurers and allow for more exclusive hospital wards and the choice of private doctors, but at the cost of a higher premium.

It is good to plan ahead to make sure you are able to pay the premiums, should you choose to continue with your private insurance policies. If you have assessed your private insurance policy and decide that the premium is not worth the coverage, you may wish to cash out. However, you must be mindful that there are applicable penalties for early termination of policies, if your private plan has such a rule.

For more information, please consult a certified financial planner or an insurance specialist, who can assist you in reviewing your policies and ensure that your coverage is sufficient through your retirement.

6. Have an Open Discussion with Your Loved Ones

Last but not least, to round off your retirement planning, the final and perhaps most important step is clearly communicating your retirement plans to those who matter the most to you.

Openly discussing your retirement plans helps to sync up everyone’s understanding and expectations. By sharing your decisions now, you reduce the likelihood of your loved ones challenging each other over your intentions.

Many legal battles arise not from a lack of money, but from a lack of clarity. Examples of disputes that may arise from a lack of clarity include:

Inheritance (Family Provision) Act – Under this law, family members can apply to a court for a share of your estate if they feel they have not been adequately provided for. Discussing your reasons for your asset distribution as part of your retirement planning makes it much less likely that a family member will challenge your will later.
Furthermore, for example, your child may sue the estate, claiming they have a ‘hidden interest’ in the family home because they helped pay for renovations, or because you verbally promised them that they could live there forever. These claims (legally known as Resulting Trusts or Proprietary Estoppel) can hold up your estate in court for years.

Consider this scenario: Mr Tan has three children. Ten years ago, he gave his eldest son $100,000 to help him start a business, and to Mr Tan, this was an early advancement of the son’s inheritance. In his will, Mr Tan leaves his remaining assets to his two younger daughters.

However, Mr Tan never discussed this rationale with his children. When he passes away, his daughters see the will as a fair distribution, but his son feels excluded. His son then files a claim under the Inheritance (Family Provision) Act, arguing that his father failed to make reasonable financial provision for him in the will.

Because there was no documentation or family discussion proving that Mr Tan intended the $100,000 to be an advance on his son’s inheritance rather than a simple gift, the court process becomes a lengthy, expensive battle that drains the estate’s value and destroys the siblings’ relationship.

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By taking the time to document your wishes through a will as part of your retirement strategy, you are building a foundation of clarity and performing an act of care for your loved ones, ensuring your estate is settled with harmony rather than conflict.

Moreover, a deep understanding of Singapore’s retirement and protection tools offers concrete benefits to your long-term strategy:

CPF LIFE provides you a guaranteed pension for life, ensuring you never outlive your basic income.
The LPA acts as a financial safeguard by appointing a trusted person to manage your assets if you lose mental capacity, preventing your retirement funds from being frozen.
The AMD protects your savings from being depleted by unwanted, extraordinary life-sustaining treatments, ensuring your funds are preserved for your quality of life.
Your CPF nomination ensures the efficient transfer of your remaining wealth to your loved ones, avoiding the delays and costs of the Public Trustee.

By checking these items off your list, you gain the freedom to enjoy your retirement years with the confidence that you are in full control of your future.