The “Me-First” retirement strategy represents a fundamental shift in how retirees approach financial security during their golden years. By prioritizing guaranteed income to cover essential expenses before discretionary spending, this approach offers a pragmatic framework particularly relevant to Singapore’s unique retirement landscape. This article explores the strategy’s core principles, analyzes its application within Singapore’s context, and examines how local retirees can leverage this approach alongside the Central Provident Fund (CPF) system.
Understanding the “Me-First” Strategy
The Core Philosophy
At its heart, the “Me-First” rule embodies a deceptively simple principle: financial security begins with ensuring that essential living expenses are covered by guaranteed income sources before considering any discretionary spending. This approach stands in contrast to more aggressive retirement strategies that treat all assets as a unified pool to be drawn down over time.
The strategy divides retirement finances into two distinct categories:
Essential Expenses (The “Floor”):
- Housing costs (mortgage, rent, property tax, maintenance)
- Food and groceries
- Healthcare and medical insurance
- Utilities (electricity, water, gas, internet)
- Transportation
- Essential insurance premiums
Discretionary Spending:
- Travel and vacations
- Entertainment and dining out
- Gifts and charitable donations
- Hobbies and leisure activities
- Non-essential purchases
The Guaranteed Income Foundation
What distinguishes the “Me-First” strategy is its emphasis on guaranteed income sources. These are income streams that remain stable regardless of market conditions:
- Social Security (or equivalent pension systems)
- Annuities – Insurance products providing lifetime income
- Traditional pensions from employers
- Rental income from paid-off properties
Critically, the strategy excludes market-dependent investments like stocks, mutual funds, IRAs, and 401(k)s from the guaranteed income calculation. While these assets certainly play a role in retirement planning, they’re reserved for discretionary spending and wealth growth rather than essential expense coverage.
Singapore’s Retirement Landscape
The CPF System: Singapore’s Safety Net
Singapore’s retirement planning revolves around the Central Provident Fund (CPF), a comprehensive mandatory savings scheme that serves as the cornerstone of retirement security. Understanding how the “Me-First” strategy aligns with CPF is crucial for local retirees.
CPF LIFE (Lifelong Income For the Elderly): CPF LIFE is Singapore’s national longevity insurance annuity scheme that provides Singaporeans with monthly payouts for life from their retirement age. This is the closest equivalent to the guaranteed income sources emphasized in the “Me-First” strategy.
As of 2025, CPF LIFE offers several plans:
- Standard Plan – Balanced payouts and bequest
- Basic Plan – Lower monthly payouts, higher bequest
- Escalating Plan – Payouts that increase over time to counter inflation
CPF Retirement Sum Scheme: For those not eligible for CPF LIFE, the Retirement Sum provides monthly payouts for 20 years from the payout eligibility age.
Singapore’s Cost Structure
Singapore’s cost of living presents unique considerations for the “Me-First” approach:
Housing:
- Approximately 80% of Singaporeans live in HDB flats
- Most retirees own their homes outright, eliminating mortgage payments
- However, service and conservancy charges, property taxes, and maintenance costs remain
- Average monthly costs: S$150-400 for HDB flats
Healthcare:
- Singapore’s healthcare system, while efficient, requires personal financial planning
- MediShield Life provides basic healthcare coverage
- MediSave can be used for approved medical expenses
- Out-of-pocket costs remain significant, especially for chronic conditions
- Estimated monthly healthcare allocation: S$300-800 depending on age and health
Food:
- Singapore’s hawker centers offer affordable dining options
- Monthly grocery and food expenses: S$400-800 per person
- Eating out moderately: Additional S$200-500
Transportation:
- Public transport remains affordable with senior concession cards
- Monthly transport costs: S$50-120 with concessions
- Car ownership becomes less common in retirement due to high costs
Utilities:
- Electricity, water, internet, mobile
- Monthly total: S$150-300
Applying “Me-First” in Singapore
Calculating Your Singapore Retirement Floor
Let’s work through a practical example for a retired Singaporean couple:
Essential Monthly Expenses:
Housing (HDB maintenance, taxes) S$ 300
Healthcare & insurance S$ 600
Food & groceries S$ 1,000
Utilities S$ 250
Transportation S$ 150
Miscellaneous essentials S$ 200
─────────────────────────────────────────────
Total Monthly Floor S$ 2,500
Annual Floor Requirement S$30,000Guaranteed Income Sources:
CPF LIFE (both spouses) S$ 2,200/month
Rental from paid-off property S$ 800/month
─────────────────────────────────────────────
Total Monthly Guaranteed Income S$ 3,000
Annual Guaranteed Income S$36,000In this scenario, the couple has successfully created a floor with S$500 monthly surplus (S$6,000 annually), providing a buffer for inflation and unexpected essential expenses.
Singapore-Specific Advantages
1. Home Ownership Rates Singapore’s high home ownership rate (approximately 89%) means most retirees enter retirement without mortgage obligations, significantly reducing their essential expense floor.
2. CPF LIFE as a Foundation CPF LIFE provides exactly the type of guaranteed lifetime income the “Me-First” strategy emphasizes. Unlike voluntary annuities, CPF LIFE is mandatory for most Singaporeans, automatically creating a retirement floor.
3. Healthcare Infrastructure Singapore’s 3M system (MediShield Life, MediSave, MediFund) provides a structured approach to healthcare costs, making it easier to estimate and plan for medical expenses within the “Me-First” framework.
4. Monetizing HDB Flats Singapore offers unique options for monetizing housing wealth:
- Lease Buyback Scheme (LBS): Allows elderly HDB flat owners to sell part of their lease back to HDB
- Silver Housing Bonus: Provides cash for downsizing to smaller flats
- Subletting: Renting out rooms while living in the flat
These programs can generate additional guaranteed income to strengthen the retirement floor.
Singapore-Specific Challenges
1. Inflation in a High-Cost City Singapore consistently ranks among the world’s most expensive cities. While CPF LIFE’s Escalating Plan addresses inflation, the rate of increase may not match actual cost-of-living growth, particularly for:
- Healthcare costs (rising 3-5% annually)
- Food prices (affected by import dependencies)
- Long-term care costs (nursing homes, domestic helpers)
2. Limited Social Security Compared to Western Systems Unlike the U.S. Social Security system, CPF payouts depend entirely on individual contributions. Lower-income workers may have insufficient CPF savings to create an adequate floor, making the “Me-First” strategy challenging without supplementary income sources.
3. Longevity Risk Singapore has one of the world’s highest life expectancies (approximately 84 years). While CPF LIFE provides lifetime income, the extended retirement period means:
- Greater exposure to inflation erosion
- Higher likelihood of significant healthcare expenses
- Need for more substantial reserves
4. Family Support Expectations Traditional Asian values emphasize family financial support, creating potential conflicts with the “Me-First” approach’s focus on personal financial independence. Many retirees feel obligated to provide financial assistance to children or grandchildren, competing with the strategy’s emphasis on securing personal essentials first.
Deep Dive: The Psychology Behind “Me-First”
Why Prioritizing Essentials Works
The “Me-First” strategy taps into fundamental behavioral finance principles:
1. Mental Accounting: By separating guaranteed income for essentials from discretionary funds, retirees create distinct mental accounts. This reduces the anxiety associated with market volatility affecting basic needs.
2. Loss Aversion: Research shows people feel losses approximately twice as intensely as equivalent gains. Knowing essentials are covered regardless of market performance eliminates the fear of catastrophic loss affecting daily living.
3. Reduced Decision Fatigue: With a clear floor established, retirees face fewer daily decisions about whether they can afford basic necessities, preserving mental energy for more meaningful choices.
The Singaporean Mindset
Singapore’s culture of financial prudence and long-term planning aligns naturally with the “Me-First” philosophy:
- Kiasu mentality: The fear of losing out encourages comprehensive planning
- Value of stability: Post-independence nation-building emphasized security
- Trust in CPF: Despite criticisms, most Singaporeans view CPF as a reliable foundation
However, Singapore’s competitive culture can also create challenges. The desire to maintain lifestyle standards may lead retirees to underestimate their essential floor or overestimate their guaranteed income by including riskier sources.
Advanced Implementation Strategies
Optimizing CPF for “Me-First”
1. Maximizing CPF LIFE Payouts:
- Top up your Retirement Account to the Enhanced Retirement Sum (ERS) before age 55
- Consider the Escalating Plan if inflation protection is a priority
- Delay CPF LIFE payouts if you can afford it (payouts increase for later starts)
2. Strategic Use of CPF Investment Scheme (CPFIS): While the “Me-First” strategy separates market investments from the floor calculation, strategically growing your CPF funds before retirement through CPFIS can increase your eventual guaranteed CPF LIFE payouts.
3. Voluntary Contributions: Self-employed individuals and those with CPF gaps can make voluntary contributions to strengthen their future guaranteed income floor.
Creating Additional Guaranteed Income
1. Immediate Annuities: Purchase supplementary retirement income (SRS) annuities from private insurers to supplement CPF LIFE. Singapore insurers offer:
- Fixed-term annuities (10-20 years)
- Lifetime annuities
- Annuities with inflation adjustments
2. Rental Income Engineering:
- Purchase a second property specifically for rental income before retirement
- Consider industrial or commercial properties with longer-term leases
- Explore REITs as a middle ground (though not truly “guaranteed,” dividend-focused REITs offer more stability than growth stocks)
3. Singapore Savings Bonds (SSB): While not providing lifetime income, SSBs offer capital-guaranteed returns that can fund essential expenses during specific periods, particularly early retirement years before CPF LIFE payouts maximize.
The Discretionary Portfolio
Once the floor is established, remaining assets serve different purposes:
1. Growth Portfolio:
- Singapore stocks and REITs
- Global equity exposure through STI ETF or robo-advisors
- CPF Investment Scheme allocations (if still available)
2. Lifestyle Fund:
- Travel savings accounts
- Hobby and entertainment reserves
- Gift and celebration funds
3. Legacy Planning:
- Insurance policies for estate distribution
- Supplementary Retirement Scheme (SRS) withdrawals
- Property held for inheritance
Real-World Singapore Case Studies
Case Study 1: The Comfortable Couple
Profile:
- Ages: 67 (husband) and 65 (wife)
- Owned 4-room HDB flat, fully paid
- Combined CPF LIFE: S$2,800/month
- Investment portfolio: S$250,000
- No children requiring support
Essential Floor: S$2,400/month
- Housing: S$200
- Healthcare: S$600
- Food: S$1,000
- Utilities: S$200
- Transport: S$150
- Miscellaneous: S$250
Analysis: This couple has a S$400 monthly surplus from guaranteed income alone. Their investment portfolio is entirely discretionary, allowing them to:
- Take annual vacations (S$8,000-10,000)
- Dine out regularly
- Support grandchildren’s education informally
- Weather market downturns without lifestyle compromise
Their “Me-First” implementation is successful, with the floor comfortably covered and flexibility for discretionary spending.
Case Study 2: The Challenged Single Retiree
Profile:
- Age: 68, single female
- Owns 3-room HDB flat
- CPF LIFE: S$800/month
- Savings: S$80,000
- Part-time work: S$600/month
Essential Floor: S$1,600/month
- Housing: S$150
- Healthcare: S$400
- Food: S$500
- Utilities: S$200
- Transport: S$100
- Miscellaneous: S$250
Analysis: This retiree faces a S$200 monthly shortfall from guaranteed income alone. Her “Me-First” strategy requires:
- Continued part-time work (which provides the necessary income)
- Conversion of S$40,000 savings into an immediate annuity, adding approximately S$200-250/month guaranteed income
- Strict budgeting on the remaining S$40,000 for discretionary and emergency needs
Alternatively, she could consider the Lease Buyback Scheme, selling back 35-40 years of her flat’s lease to HDB, generating both guaranteed monthly income and a lump sum to strengthen her position.
Case Study 3: The Over-Extended Family
Profile:
- Ages: 66 (husband) and 64 (wife)
- Own 5-room HDB flat
- Combined CPF LIFE: S$2,000/month
- Investment assets: S$180,000
- Supporting two adult children financially: S$1,500/month
Essential Floor (without family support): S$2,200/month Actual spending: S$3,700/month
Analysis: This couple violates the “Me-First” principle by prioritizing family support over their own financial floor. With a S$200 shortfall on essentials and S$1,500 in family support, they’re drawing down investments at S$1,700/month (S$20,400 annually).
At this rate, their investments will be depleted in under 9 years, leaving them dependent on CPF LIFE alone—which doesn’t cover their essential floor.
Recommended adjustments:
- Gradually reduce family support to S$500-800/month
- Have honest conversations with adult children about financial independence
- Consider monetizing the flat through downsizing or the Lease Buyback Scheme
- Explore additional income through senior employment programs
This case illustrates how cultural expectations can undermine retirement security when not balanced with personal financial needs.
Integration with Other Retirement Strategies
“Me-First” + The 4% Rule
The 4% rule suggests withdrawing 4% of investment portfolios annually, adjusted for inflation. In Singapore, combining this with “Me-First”:
- Use CPF LIFE and other guaranteed income to cover essential floor
- Apply 4% rule to remaining investment portfolio for discretionary spending
- If 4% withdrawal exceeds discretionary needs, reduce withdrawal rate to preserve capital
Example:
- Essential floor: S$30,000/year
- CPF LIFE: S$30,000/year (floor covered)
- Investment portfolio: S$300,000
- 4% withdrawal: S$12,000/year for purely discretionary spending
This combination provides security (essentials covered) with flexibility (predictable discretionary budget).\
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“Me-First” + The Bucket Strategy
The bucket strategy divides assets by time horizon. Singapore adaptation:
Bucket 1 (Years 1-5): Immediate Needs
- CPF LIFE payments
- Singapore Savings Bonds
- Fixed deposits
- Cash reserves
Bucket 2 (Years 6-15): Medium-term
- Dividend-focused Singapore REITs
- Blue-chip Singapore stocks
- Balanced funds
Bucket 3 (Years 15+): Long-term Growth
- Growth equities
- International diversification
- Alternative investments
The “Me-First” floor should be covered by Bucket 1 and guaranteed lifetime income (CPF LIFE), while Buckets 2 and 3 handle discretionary spending and growth.
Common Pitfalls and How to Avoid Them
Pitfall 1: Underestimating Essential Expenses
Many Singapore retirees underestimate their true essential costs, particularly:
- Healthcare (increases significantly with age)
- Home maintenance (older HDB flats require more repairs)
- Helper costs (if mobility becomes limited)
Solution: Add a 20-30% buffer to essential expense calculations and review annually.
Pitfall 2: Overestimating Guaranteed Income
Rental income, while relatively stable, isn’t truly guaranteed:
- Vacancy periods between tenants
- Unexpected major repairs
- Tenant defaults
Solution: Either discount rental income by 15-20% in calculations or classify it as semi-discretionary.
Pitfall 3: Ignoring Inflation
Singapore’s inflation, while generally moderate, can erode purchasing power significantly over 20-30 year retirements.
Solution:
- Choose CPF LIFE Escalating Plan
- Review and adjust floor calculations every 2-3 years
- Build in 2-3% annual increase expectations
Pitfall 4: No Emergency Reserve
The “Me-First” strategy focuses on ongoing expenses but doesn’t explicitly address emergencies:
- Major medical procedures not covered by MediShield Life
- Critical home repairs
- Family emergencies
Solution: Maintain an emergency fund of 6-12 months of essential expenses separate from the guaranteed income calculation.
Pitfall 5: Lifestyle Creep
As discretionary assets grow, retirees may gradually move discretionary spending into the “essential” category mentally.
Solution: Conduct annual reviews with strict criteria for what constitutes “essential.” If it wasn’t essential last year, it probably isn’t essential this year.
The Future of “Me-First” in Singapore
Evolving CPF System
Singapore’s government continues refining the CPF system. Recent and potential future changes affecting “Me-First” strategies:
- Increased retirement sums: The Full Retirement Sum increases annually, potentially strengthening future retirees’ floors
- Enhanced healthcare coverage: Expansions to MediShield Life and ElderShield/CareShield Life may reduce essential healthcare costs
- Retirement age increases: As the retirement age rises, workers have more time to build their guaranteed income floor
Housing Monetization Innovations
The government has signaled openness to additional housing monetization schemes:
- Expanded Lease Buyback Scheme eligibility
- Potential reverse mortgage products
- Enhanced subletting options
These could provide more pathways to strengthen retirement floors for home-rich, cash-poor retirees.
Longevity Insurance
As Singapore’s population ages, private insurers are developing products specifically for longevity risk:
- Deferred annuities starting at age 80 or 85
- Long-term care insurance with guaranteed payouts
- Hybrid products combining investment and insurance
These products could complement CPF LIFE in creating a more robust guaranteed income floor.
Conclusion: Is “Me-First” Right for You?
The “Me-First” strategy offers Singapore retirees a pragmatic framework for retirement security, particularly well-suited to the local context with CPF LIFE providing a strong guaranteed income foundation.
You should consider “Me-First” if you:
- Value security and predictability over potential higher returns
- Have successfully built up adequate CPF savings
- Own your home outright or have minimal housing costs
- Want to reduce financial stress in retirement
- Have moderate to low risk tolerance
You might need adaptations if you:
- Have insufficient CPF savings (requiring additional income sources)
- Support extended family financially (requiring careful negotiation of priorities)
- Have significant legacy goals (might conflict with floor-building)
- Prefer more aggressive investment approaches
You should probably avoid pure “Me-First” if you:
- Have very high risk tolerance and investment expertise
- Are retiring very wealthy (floor is inherently covered)
- Have young dependents requiring ongoing support
- Want maximum estate value preservation
Taking Action
For Singapore retirees considering the “Me-First” approach:
- Calculate your essential floor using actual expenses or realistic projections
- Inventory guaranteed income from CPF LIFE, pensions, annuities, and reliable rental income
- Identify gaps between floor and guaranteed income
- Explore solutions:
- Monetize housing through LBS or downsizing
- Purchase supplementary annuities
- Delay CPF LIFE start date
- Consider part-time retirement work
- Implement gradually rather than making sudden drastic changes
- Review annually and adjust as circumstances change
The Ultimate Goal
The “Me-First” strategy isn’t about deprivation or excessive conservatism. It’s about creating a foundation of security that allows you to enjoy retirement without constant financial anxiety. In Singapore’s context, where CPF LIFE provides an existing guaranteed income base, the strategy becomes highly practical—it’s about ensuring that base is sufficient and then making informed, confident decisions about everything beyond it.
By covering your essentials first, you create the freedom to be flexible with everything else. That’s the true promise of putting yourself first in retirement: not selfishness, but the security that enables genuine peace of mind during your golden years.
Disclaimer: This article provides general information and should not be considered financial advice. Individual circumstances vary significantly, and readers should consult qualified financial advisors familiar with Singapore’s regulatory environment before making retirement planning decisions. CPF policies and regulations are subject to change; always verify current rules with official CPF sources.
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