(1) Current age. Number of years to accumulate funds before retirement.(2) Current health. Deteriorating health will be more of an immediate concern.(3) Financial position. Amount of savings, assets, liabilities, current income, expenses.(4) Existing plans. CPF, SRS, insurance and investments already in place. Overall Plan Depending on which stage on the retirement plan, the approach to adopt will be different. (1) Accumulation PeriodThe period when one starts to save for retirement until about 10 years prior to retirement. Thefocus will be on the shortfall of funds required for retirement form the current reference point. Themain strategy will be on saving to invest. Investment will be covered in a later topic. (2) Transition PeriodThe period about 10 years just prior to retirement. As retirement draws nearer, the goals becomeclearer. It is important to review if the desired lifestyle can be achieved with the funds or if moresavings is required. The funds accumulated earlier will also need to be gradually repositioned intoless risky investments. (3) Retirement PeriodThis continues throughout since retirement. The funds will be used to generate current income.Some considerations during this period:- Purchase of Annuities (CPF Life)To provide a guaranteed income for life. Recommended to purchase to cover for the minimummonthly living expenses required.- Maximize use of propertyReverse mortgage, downgrading, renting out spare rooms can be considered for additionalincome.- WorkTo perhaps work on a part time basis, as a consultant or run a business. As with all plans, it will need to be continuously reviewed when personal circumstances change(like a newborn or divorce), external market conditions affecting investments, or introduction ofnew policies (like change of statutory retirement age or CPF rules). Use of the Present Value and Future Value calculations covered earlier will need to be used togive a better estimate of the amount needed. A simple example: John Doe in good health, age 40, intends to retire at age 60, current income is $60,000 annually. Assumptions: Projected expenses at retirement is 60% of pre-retirement income, income willincrease 3% annually, inflation is 2%, investment returns is 7%, life span will be till age 80, willcarry on to stay at current residence.CPF contributions mainly used for housing and repayment ofloan and has not started any retirement plans. PV = 60,000, 1/Y = 3%, N = 60 - 40 = 20; FV = 108,367.