There are plenty of Singaporeans who have the capacity to retire, but still find themselves working. Some of these people work because they enjoy it, and that’s a great thing. But at the same time, some of them keep working out of fear. Many of us have a nagging suspicion that if we stop working now, we can’t start again (we’re too old to be rehired, etc.) and haven’t built a big enough retirement fund.

To allay your worries, here are some guidelines on when it’s “safe” to truly stop working:

1. Check if your retirement expenses meet the “4% guideline”

The 4% guideline states that, assuming you retire at around 65, your retirement fund can safely last till 90 if you withdraw only 4% of it every year. For example, if you have a total retirement fund of $350,000, you can withdraw up to $14,000 a year.

Balance ...