Automated Retirement Planning? This Tool Could Just Be It

Retirement is a stage in life that many of us look forward to, where we can finally kick back and enjoy the fruits of our labour.

While most of us do try to budget our salaries and maximise our savings, I do admit that retirement planning is not something that I place emphasis on, given how I only just began my career.

Where got time to think so far?

At Seedly, we’ve talked about how one can start planning for retirement and covered how to make use of your Central Provident Fund (CPF) to grow your retirement sum.

Do you know if you’re meeting or falling short in your CPF contributions so that you can attain your ideal CPF monthly payout by the age of 55?

What if there’s a tool for you to track, grow and project how much you need, and display all your financial information in one place?

I’m not talking about boring Excel sheets…

I’m referring to the DBS Nav Planner’s new CPF feature that enables you to benchmark your retirement savings against the projected CPF retirement sums for your age cohort!

With a clearer picture of how much CPF contributions you need to make, you can effectively close the gaps in your retirement savings.

Let’s find out!

TL;DR: How to Use DBS Nav Planner For Retirement Planning

Click here to jump:

• What is DBS Nav Planner?
• How do you plan your retirement with DBS Nav Planner?
• How is CPF projection done on DBS NAV Planner?

Disclaimer: This article is not sponsored. The information provided by Seedly serves as an educational piece and is not intended to be personalised financial advice. Readers should always do their own due diligence and consider their financial goals before committing to any financial product.

What is DBS Nav Planner?

Before we dive into what DBS Nav Planner is, you first need to understand what SGFinDex is.

SGFinDex, which stands for Singapore Financial Data Exchange, is a new digital infrastructure that is developed by the public sector in collaboration with the Association of Banks in Singapore and seven participating banks.

It has a centrally managed system that provides a one-stop solution for individuals to access their financial information that is held across different agencies and financial institutions.

This means that we now do not have to manually visit different platforms to collate our financial data, which could be time-consuming previously.

It is built on Singapore’s National Digital Identity (SingPass), where Singaporeans will be able to view their information on a platform of their choice. It also aims to harness digital technology to enhance the financial well-being of Singaporeans.

Using SGFinDex via a participating financial planning application or website is also currently free of charge. There are seven participating banks powered by SGFinDex currently and DBS is one of them. The financial planning applications can be accessed via the platforms listed below.

By choosing one of these banks, you can set a budget and view your cash flow, investments, insurance, savings, and emergency funds all on the platform,

But, lo and behold. DBS has officially launched a feature that displays your CPF details using the NAV planner, and just by clicking on the feature, you can actually project how much you need in order to meet your retirement goals.

It is the only bank in Singapore that has this feature so far.

Instead of personally calculating how much you need to contribute in order to meet your retirement needs, this feature automatically calculates the amount you need for you and benchmarks against your age cohort.

You can also sync NAV Planner with HDB, IRAS, SGX CDP, other banks, and insurers to get a complete overview of your financial health and progress. Moreover, it offers tailored advice and recommendations that empower you to make informed financial decisions that are not just for the short term but for your long-term financial journey.

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How Do You Plan Your Retirement With DBS Nav Planner?

Step 1: Create a DBS or POSB digibank account > Select ‘Plan’ in the second tab from the right

Step 2: Select the “Net Worth” tab to see your Asset and Liabilities, and to aggregate your financial data. You will find that some transactions have already been categorised for you for easier tracking. Here, there will be prompts for you to sync your financial accounts.

Step 3: You will be directed to Singpass to enable the sharing of data through SGFinDex. Select the financial institutions you wish to sync the data with.

In addition to CPF, you may possess other assets and liabilities, alongside insurance policies. Assets could comprise investments and real estate, whereas liabilities could entail mortgage loans, car loans, and credit card debts. These data can be synced to your DBS Nav Planner and you can get the latest notifications such as incoming deposits, due date of premiums, and any credit cards.

So, How Is the CPF Projection Shown On The DBS Nav Planner?

Step 4: Once you are done syncing, you can scroll the bar to the left and select ‘Retirement‘ to use the DBS NAV Planner’s Map Your Money feature. This helps you work towards your aspirations and desired retirement lifestyle by visualising your future cash flow and identifying gaps you need to fill.

Here, you can scroll down and you will be asked to:

• Key in your current income
• Key in the age at which you wish to retire
• Project your monthly expenses in SGD

You will be shown a graph like this and if there’s any shortfall towards that goal, the amount will be displayed on screen. This is under the pretext that your income stays the same (which likely will not).

When you’re on this page, you can add multiple life goals and commitments, and the funds displayed will be adjusted accordingly.

Step 5: There is no need to sync CPF as your financial information from CPF, IRAS, and HDB has been automatically connected via Singpass. You can continue scrolling down to see a “CPF projection” in the “Retirement” tab.

Step 6: Click on “See Projection” to display your account balances, projections for balances by age 55, and estimated CPF Life payouts will be displayed.

You can also determine your progress in meeting the Basic, Enhanced, or Full Retirement Sum.

(Read more: CPF LIFE VS Retirement Sum Scheme (RSS): Which One Are You On? What’s the Difference?)

This feature is especially useful for those who are not familiar with CPF, as it provides a convenient way to identify whether or not you are meeting your retirement needs.

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Other Functions of DBS Nav Planner CPF Feature

If you think that just being able to track your CPF goals is the only function of this feature, think again.

If any individual realises that he is not on track to meet these goals, he can reset certain financial goals or shelf plans to meet these goals. This is especially true in cases where our parents do not have sufficient in their CPF accounts and may consider downsizing as a way to reach these CPF goals.

Similarly, for those who are younger, you may want to consider picking up a new skill or investing to boost your income, then top up your CPF monies.

Besides helping you with decision-making with your CPF, the DBS planner also dispenses personalised financial advice that is specific to your situation.

Read more:

• Secret CPF Hacks And Tips That All Singaporeans Need To Know
• CPF Hacks to Give Your Child a Headstart
• CPF Matched Retirement Savings Scheme (MRSS): Get Dollar-To-Dollar Matching for Cash Top-Ups

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Afterthoughts

Suffice it to say, I’m a convert now.

In Singapore, the retirement age has been raised to 65 years old, in line with the country’s ageing population.

With this increase, it’s crucial for individuals to start thinking about their retirement plans early on, and to consider the various options available to them, such as savings plans, investments, and retirement schemes.

By planning for retirement ahead of time, we can have peace of mind and enjoy our golden years without financial stress.

What are your thoughts on this new feature? Share them with the Seedly Community!