Retiring Early: Habits I Developed For the Three Stages of My Retirement 

When I was a twenty-something, I made what I thought was quite an ambitious goal: I wanted to retire by the time I turned 45. As someone who earned way below median income for almost the entirety of my twenties, I wondered whether that was something possible. 

Thankfully, I have been fortunate enough that the timeline has been brought forward quite a bit and as I enter my late thirties, I can see retirement within reach. Over time, something obvious but important has dawned upon me – retirement isn’t a singular end-point where I simply declare a state of freedom and joy after reaching a magical number for retirement. 

Financial wellness isn’t just about reaching a single milestone; it’s about embracing a journey that evolves with us as we age. I’m happy to share with you my own story thus far, as well as highlight the various DBS and POSB products that have been part of my journey all these years.

The Short Term: Taking Care of the Everyday Dollars

Building a house requires a foundation, and the same goes for retirement. During my financially active years, my focus has always been to earn as much as I possibly can, and strive to keep as much as possible. Like a building which is built brick by brick, my retirement nest egg is accumulated dollar by dollar. 

Being prudent with my spending has been a crucial part of how I manage to squirrel away more money for my retirement. Over the years, I have developed a habit of being mindful with almost every expense I make. Often, I ask myself whether I really need to buy something, or if there are cheaper alternatives available. Such a habit has not only allowed me to put aside more money, it has also made me be on the lookout for more ways to save even more money.

For instance, to help me gain more dollars, DBS & POSB have useful products that I’ve been using on a daily basis to increase the amount of savings I’m able to gather. For instance, the bank has excellent credit cards that help me save on my cost of living. DBS yuu probably needs no introduction, but it’s the highest-earning card now for things like my Cold Storage groceries and foodpanda take-outs. The generous earn rate is so high that it helps me significantly to offset higher prices due to inflation.

Another thing I use regularly is POSB Cashback Bonus which is a great banking scheme. It allows me to get additional cashback on things like my salary, credit card spend, and even my regular monthly investment with the bank. This helps me squeeze out that little bit more from what I’m already doing each month – being gainfully employed to earn a salary, putting my everyday spend on credit cards to earn rewards, and investing my funds to grow them over time.

Lately, I’ve been hearing opinions that managing short-term savings isn’t as important as focusing on long-term investments, but I believe the two go hand-in-hand. The everyday savings I make provide more cash flow to increase my monthly investments, and every bit saved also helps offset the impact of rising costs over time. Moreover, the habits I’ve cultivated will carry over into retirement; being prudent during my financially productive years and the early stages of retirement allows me to reserve more for later use and to invest for the later years of retirement.

The Medium Term: Looking Years into the Future

Speaking of investments, that is perhaps one of the most important things to take care of. Because interest rates have been quite high in the past couple of years, putting funds into instruments like bank deposits and T-Bills has given pretty attractive interest despite their low risk. As a relatively risk-averse person, it has been comforting leaving my funds in such places earning modest but safe returns.

Nonetheless, I have always made it a point to invest, and there have been two ways I have found effective in getting me to put aside money each month for longer term goals. 

Like any habit, investing can be formed with a fixed and regular routine. This is why I have found it really effective to make sure I put aside some amount of money each month towards investments. In my twenties, as someone completely green to the world of investment, I started a Regular Savings Plan (RSP) with my POSB account, investing a fixed amount into a Singapore Index Exchange Traded Fund each month. Despite just putting in a few hundred dollars monthly, over the years it has accumulated into a nice amount. It has since reinforced my belief that investments done in an automatic and regular manner can snowball into a good amount.

The second thing that help me with long-term investing is setting up my Supplementary Retirement Scheme (SRS) which I have also done with DBS. I have been contributing to my SRS for a few years now and it’s been a great way to quickly reduce my yearly income tax obligations. Once I save on tax, however, it isn’t wise for me to leave the funds sitting in the account earning a nearly non-existent 0.05% p.a. interest. Since I can only make penalty-free withdrawals in my 60s, it is much easier deploying the funds into long-term investments as those funds are already meant for the long-term.

The Long Term: To Infinity and Beyond

Even for those who retire at a traditional age, retirement can last for a long time, especially given how our average lifespan has been steadily increasing. Annuities and other long-term income sources can play a key role here, providing a steady stream of funds to cover living expenses as we grow older.

CPF LIFE is possibly the best annuity we can have in Singapore. In recent years I have also started to top up my CPF Special Account to not only save on taxes, but to also enjoy the risk-free rate of at least 4% p.a. CPF LIFE pays a monthly income until the day I pass, and that greatly alleviates worries of outliving my retirement resources.

Besides my CPF, I’m a typical Singaporean so I will also be looking at property as an ongoing income source. If you have been following my YouTube channel, you would know that I’ve been looking to move for some time now. While my plans are still vague, one possibility I see is getting a dual-key unit so I have a place of residence while being able to rent out part of my property for rental income. Of course, I’d also be inclined to take up the home mortgage with DBS seeing how it will also get cashback under POSB Cashback Bonus.

What You Can Do Today

Like many goals in life, things do not happen overnight. Achieving financial security and a comfortable retirement requires consistent effort and the willingness to adopt habits that may not immediately pay off.

All it takes are four habits:

Save	Save enough of take-home pay and make sure to have emergency savings
Protect	Insure enough against large medical bills and income loss
Grow	Invest enough and regularly to harness the power of compounding
Retire	Have enough for basic needs and occasional luxuries

Start by taking small, deliberate steps: track your expenses, identify ways to save, and set aside funds for both short-term and long-term needs. Consider leveraging tools like cashback schemes, regular savings plans, and tax-efficient strategies to make the most of what you already have.

Every small action builds momentum toward your goals, and over time, these habits will compound into significant results. To make it easier, make such actions as automated as possible. For instance, you can set up a recurring transfer, putting a fixed amount from your monthly salary into another account. On top of that, set up a regular investing plan so that part of your savings is put to work for the long-term. After years of compounding, something that takes only a few minutes to set up today could be the reason your future self thanks you for.

If this resonates with you and aligns with what you have been doing, it’s a sign you’re well on your way to achieving financial wellness. If not, don’t worry; it’s not a journey you have to navigate alone. Consider reaching out to a POSB Wealth Planning Manager, who can provide personalised guidance and practical tips for building good money habits. Plus, you’ll receive a free POSB passbook filled with actionable steps to help you along the way.

An Ongoing Journey

Planning for retirement has been quite a journey. What started as an ambitious and vague goal to retire early has become more achievable and structured. Having a more concrete approach also allows me the confidence to make significant life decisions which I’m eager to share with you all as I progress through this journey. Stay subscribed for updates!

Ready to build better money habits? Start your journey with the POSB Money Habits Tracker and transform your finances.

Disclaimers:
The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment. Do note that this is not financial advice. If you are in doubt as to the action you should take, please consult your stock broker or financial advisor.

Disclosure: This post is sponsored by POSB. All views and opinions expressed in this post are from Sethisfy

This advertisement has not been reviewed by the Monetary Authority of Singapore.

This information is from DBS Bank Ltd (Company Regn. No. 196800306E) (“DBS”) which is an Exempt Financial Adviser as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore (the “MAS”).

Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.

He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.

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