Pink Guide: LGBT Retirement Considerations 101

Updated: Aug 21, 2019

What do you think of when you hear the word “retirement”? Visualize reaching the age of 55 years old. How do you think you will retire? Do you have enough money? Do you have a house? Do you spend more time with your children or parents (if any)? Do you plan to travel the world with your partner? Most retirement activities require money. That’s why it is so important to plan ahead.

Let’s use an example, Rui Min is a female who is now 37 years old. She is employed and draws a monthly salary of $3800. Rui Min’s partner Kelly is 36 years old and draws a monthly salary of $3500. Rui Min is living with her elderly parents, who are both semi-retired. Hence she gives them a monthly pocket money of $500.

Rui Min and Kelly want to get married. Unfortunately, LGBT marriage is yet to be legalized in Singapore. Hence Rui Min can only buy a HDB resale flat with Kelly under the Joint Singles Scheme. She is looking at child adoption in the future, as she loves kids and wants to start a family with Kelly. She hopes that with her income she can support both her parents and lead her life with Kelly.

This scenario is an example of the problems Rui Min will face in the future as a LGBT.


Assuming Rui Min wants to buy a 4-room resale flat under the Joint Singles Scheme, in the mature estate of Tampines. The resale flat costs $540,000, with 95 years of lease left. She wants to live closer to her parents so that she can take care of them. Assuming after grants, her resale flat costs $490,000. Rui Min & Kelly agree to put aside $1000 monthly each, for the flat. That’s $12000 a year. $490,000 / $12000 = 40.8 years of repayment. Rui Min needs to ensure she is able to pay for the HDB for at least 40 years, without loss of income.

Rui Min needs to plan her finances carefully so that she can continue paying for the house. Rui Min can consider buying life insurance because it provides protection for her whole life and has a savings elements. In the event she passes away, she will be covered and her beneficiary (parents/partner) will be paid a sum that helps cover any ongoing expenses.


Rui Min, intends to take care of her parents. Hence, she will need more spare cash flow when her parents get older. This is because older people have a higher chance of having more medical problems, meaning the cost of expenses goes up. Under the law, Rui Min is unable to marry Kelly and it will not be Kelly’s responsibility to care for Rui Min’s parents in the event the unexpected occurs, such as a Rui Min falling ill to cancer or passing away early.

Rui Min can choose to purchase an Investment-linked policy (ILP). An ILP offers life protection and potential of higher returns through investments. This can serve to meet the long-term financial goals of Rui Min.

Children’s Education

Did you know that it costs at least $670,000 to raise one child in Singapore? Rui Min intends to adopt a child in the future. Hence, she will need to be prepared to take care of the child for the next 20 years of her child’s life. The best way she can provide for her child is through an endowment policy. An endowment policy provides life protection for a specific period and a savings element.

Rui Min can be prepared in the event she passes away, before her child reaches 21. She can nominate her child to be given a lump sum. Rui Min can also wait for maturity and cash out the funds from her endowment policy to provide for her child’s university education.


LGBT retirement issues: https://en.wikipedia.org/wiki/LGBT_retirement_issues_in_the_United_States#%E2%80%9CBaby_boomers%E2%80%9D_aging

LGBT retirement: https://www.forbes.com/sites/davidrae/2018/06/12/best-lgbt-retirement/#b4f2e5c964fb

Joint Singles Scheme: https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/resale/schemes-and-grants/cpf-housing-grants/orphans-scheme

Compare HDB Prices: https://services2.hdb.gov.sg/webapp/BB33RTIS/BB33SComparator


Cost to Raise a child in 2019: https://singlife.com/blog/what-it-costs-to-raise-a-child-in-2019

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