I'm 40 and Nowhere Near Ready for Retirement. Now What?

If you feel "late to the game," take heart: almost 1 in 2 Singaporeans are in the same boat. The OCBC Financial Wellness Index 2024 found that only 54 per cent of adults have even started making retirement plans, and many in their 40s admit they are not on track.

Feeling behind is normal - but paralysis is optional.

Here's a practical, Singapore-specific playbook to turn the next ten years into a launch-pad for financial independence and early retirement (FIRE).

1) Order a "Financial MRI" This Weekend

Scan	What to Do	Why It Matters
Net-worth snapshot	List every asset (cash, CPF, investments, property equity) and every liability.	You can't fix what you can't see.
90-day cash-flow X-ray	Track every expense; most people uncover 10-15% "easy cuts."	Freeing S$1,000/month now is easier than earning it later.
CPF dashboard check-up	Compare your balances with the 2025 Full Retirement Sum (FRS) of S$213,000.	Shows the gap you must close to secure lifelong CPF LIFE payouts.

Pro tip: CPF's new "PLAN with CPF" digital platform makes this easier than ever. The platform offers three powerful planners: a Retirement Payout Planner to project your retirement savings and explore optimization strategies, a Home Purchase Planner to calculate budgets and assess how housing decisions impact retirement goals, and a Health Insurance Planner to compare coverage options and assess long-term affordability. Access your personalized dashboard at cpf.gov.sg using your SingPass.

Reality check: If your liabilities exceed assets or you're far below the Full Retirement Sum (FRS) glide-path, don't panic; the next section is built for catch-up mode.

2) Your Ten-Year Sprint Strategy

1. Hit a 50% Savings Rate

Channel every bonus and pay-increment straight into investing or CPF top-ups. Yes, it feels aggressive - but doubling your savings rate halves the years needed to hit your target.

2. Tilt 70%+ to Equities

With a 25-year horizon (age 40 → 65), market volatility is your friend. A globally diversified ETF portfolio aiming for ~6% net outpaces CPF's 2.5–4% and keeps the FIRE dream alive.

3. Right-size Your Property

If your mortgage eats >30% of household income, consider downgrading or refinancing. Use CPF's Home Purchase Planner to explore how different housing decisions impact your retirement timeline. Unlocking S$300k of equity now, invested at 6%, grows to ~S$540k in 10 years.

4. Side-Hustle Ramp-Up

A weekend gig that nets S$1,000/month, invested at 6%, compounds to ≈ S$160k in a decade - often the missing chunk between "Barely Enough" and "Comfortably Retired."

5. Maximize CPF Strategies

Use the Retirement Payout Planner to map out your payout goals and explore ways to leverage CPF to achieve them, such as through strategic top-ups.

Remember: the government now matches cash top-ups to your Retirement Account dollar-for-dollar, up to S$2,000 annually with a lifetime cap of S$20,000.

3) Plug the Protection Gaps - Before Premiums Spike

Coverage	Why You Need It at 40	Quick Action
Integrated Shield Plan + rider	Hospital bills inflate faster than CPI; get coverage before the next age-band jump.	Use CPF's Health Insurance Planner to compare different Integrated Shield Plans and assess long-term affordability. Use MediSave for premiums.
Multipay critical illness insurance	CI strikes derail earning power; multipay plans protect against multiple claims.	Aim for 4× annual income in sum assured.
Disability income	Replaces up to 75% of salary if you can't work.	Cheaper in your early 40s; lock it in now.
Estate planning	Wills + insurance nomination keep assets out of probate.	Draft a will and file CPF & insurance nominations this month.

Smart move: Calculate how much MediSave savings you need for your desired coverage using the MediSave Balance Simulator, and compare premiums across providers with the Integrated Shield Plan comparison tool.

4) Mindset & Skill-Stack Hacks

• Comparison kills. Track your delta (progress) rather than your deficit versus others.

• Peer accountability works. Studies show that sharing financial goals with a committed buddy boosts adherence by ≈ 40%. Start or join a supportive group if you can.

• Re-skill for a pay bump. From May 2024, every Singaporean aged 40+ receives a S$4,000 SkillsFuture Credit top-up - use it to earn certificates that can raise income 15-20%.

• Take the financial fitness test. CPF's platform includes a financial fitness questionnaire co-developed with MoneySense to help you assess your overall financial health beyond CPF.

5) Sample 10-Year Projection

Input	Amount
Current investable assets	S$120k
New monthly contribution (50% SR)	S$3,000
Side-hustle contribution	S$1,000
Average annual return	6%

Result: Portfolio grows to ≈ S$920k at age 50 and ≈ S$1.3M by 55. Combined with hitting the FRS and topping up SRS for tax relief, this supports a sustainable withdrawal of ~S$4,300/month - plus CPF LIFE payouts - answering the perennial question "how much do I need to retire comfortably Singapore?"

Ready for Your Personal "40-to-FIRE" Road-map?

Stop guessing. The new digital tools make planning easier, but implementing a personalized strategy requires expert guidance.

👉 Sounds like a lot? We've summarised these into a checklist for easy reference. Download it here.

Alternatively, you can also book a complimentary consultation with WealthDex's advisers and we'll help to:

1. Run a personalized financial audit - going deeper than basic online calculators

2. Optimize your insurance strategy so medical bills don't derail your retirement plans

3. Create your step-by-step roadmap to help you retire early with confidence

Don't let another year pass feeling behind. Your future self will thank you for taking action today.