While most Singaporeans recognise the importance of planning for their financial future, only 24 per cent have actually calculated how much they would need when they retire.

Results from a recent survey conducted by the Monetary Authority of Singapore (MAS) also showed that a shocking 42 per cent of the survey respondents thought that their CPF savings at retirement would provide them with a monthly income equivalent to their last take home pay.

Yet, only 28 per cent of Singaporeans polled claimed to have an understanding of how much CPF funds they would have at age 55 and as few as 30 per cent were aware that they would need two-thirds or more of their last monthly income to afford themselves a comfortable retirement.

The findings of the MAS survey come after a separate study conducted by the Singapore Management University (commissioned by OCBC Bank), which showed that an average Singaporean at age 55 only has approximately $60,000 in CPF savings and another $60,000 in liquid and invested assets currently. Clearly, the total of $120,000 in financial resources is insufficient to keep a retiree going for the next 20 to 25 years.

Did you know that meeting the current CPF minimum sum of $90,000 gives you a monthly endowment of only $711? This amount alone is hardly sufficient to sustain a person through his or her golden years. And given the low balances that a 55 year old Singaporean has in CPF savings on average, it becomes apparent that CPF savings alone are insufficient for retirement. According to statistics from the CPF Board, the average balance of CPF members aged 50 to 55 in the year 2003 was $58,103.

Therein lies the importance of financial planning for retirement. As one goes through the different stages of his or her life, certain events like marriage and starting a family tend to take precedence. Retirement, because it seems far away, is usually forgotten and not taken into account until much later or until it is too late.

If you find yourself in this predicament, it is not too late to start planning. Reading this article and realising that you may lack a sound retirement plan, is already the first step towards a more secure future.

First things first, assess yourself to see how much you are worth. Your CPF fund balances can even be viewed online at the CPF website. Factor in your other invested and liquid assets and determine how much total savings you currently have.

Next you need to decide realistically what you hope to have in monthly allowances through your golden years. Bear in mind however, that with advancements in medical science and increasing life expectancy, you should plan for at least 20 to 25 years in retirement.

Now ask yourself what your appetite for risk is. With different financial instruments available to help grow and manage you wealth, you need to decide which ones are most suited to your needs. For example, some unit trusts may be able to offer high returns, but they may also come with high risk. On the other hand, products like principal protected structured deposits may be less risky, but their returns may also be lower.

Ultimately, what matters is that you take action immediately. Whether you are young or old, retirement is one thing as certain as tomorrow's sunrise. Though it sometimes requires a good deal of commitment and sacrifice, it is always best to start saving and investing early.

If you need help with retirement planning, you may wish to consider OCBC Wealth Management's advanced financial planning tool, WealthMapTM. You can seek help from OCBC Bank's Personal Financial Consultants located at any of its branches.