Money Milestones Q&A: Daisie, Retiree

For New Zealand Money Month, PocketSmith’s Chief Marketing Officer Dora Yip chats to her mum, Daisie, a retired Singaporean educator in her 70s.

What are the most important lessons you’ve learned about managing money?

I grew up in a humble household and learned to always spend within your means from a young age. When I started working, I decided that whatever I earned, I wanted to save some first. I aimed for 10%.

What has been your biggest financial challenge, and how did you overcome it?

Your dad and I were young parents. I was 22 when I had my first child, and he was 24! We decided for me to take a break from teaching to look after our 1-year-old daughter. This was in the 1970s and not commonly done. Most mothers carried on working and relied on extended family for childcare help.

We also planned not to have a second child too soon. (Reader: there’s a five-year age gap between Dora and her older sister!) Because we were quite intentional with our planning, and very careful and prudent with our budget, and spent within our means, we found that it was very comfortable.

I also tutored the neighbourhood children when I could to earn a bit of side income.

Where do you go for financial advice and information?

I’ve never actively sought out financial advice. On reflection, I think it’s because I’m a civil servant, and in Singapore, at least, this means that my salary was stable and guaranteed. This consistency of income meant I always had a psychological safety net.

How do you measure financial success in your life?

Financial success to me means having enough to live on and enough to save.

My day-to-day expenses are minimal. I don’t really care for brands, and am pretty frugal. I still have good health, can travel and eat what I want, and spend time with my grandkids. I don’t need expensive things to be happy.

Do you have an approach to managing money?

Frankly, no! I have been blessed with an iron rice bowl. I was a teacher who retired as a Superintendent of schools. I married another teacher, so our financial situation has been pretty stable together.

How did you prepare financially for retirement?

I thank the Singapore government for creating the Central Provident Fund — it’s our country’s compulsory savings plan to help citizens and residents fund their housing, education, retirement and healthcare needs.

I’m also a typical kiasu Singaporean, so I knew that I had to always focus on continuously improving and finding the best path for myself. In the case of retirement, I could have opted to take out a lump sum payout when I retired or live off a monthly pension. I chose the monthly pension because I felt that it was the most stress-free option. I also didn’t know what to do with a big lump sum payment — I prefer to have a healthy regular income in retirement rather than one big payment and nothing coming in after.

How do you manage your retirement income and expenses?

My day-to-day expenses are minimal. I don’t really care for brands, and am pretty frugal. I’m still spending the same amount on haircuts than I did as a new teacher. My lifestyle hasn’t really crept up with growing income. Take clothing for example, as long as it’s comfortable and doesn’t look dowdy or tarnish my professional look, I’m happy to wear it!

I still have good health, can travel and eat what I want, and spend time with my grandkids. I don’t need expensive things to be happy.

How do you handle healthcare costs and other unexpected expenses in retirement?

Singapore has excellent healthcare, and I’m also careful with nutrition and diet, and I do what I can to avoid falling sick. I also have a good savings buffer for emergencies.

What financial habits have helped you the most in reaching a comfortable retirement?

A helpful fashion tip that has served me well: I want to look good, but I don’t have to look expensive.

This interview is part of New Zealand Money Month 2024. NZMM is coordinated by trusted personal finance resource Sorted, in partnership with the financial capability community, and it involves events all around the country to encourage New Zealanders to talk about money and develop greater financial capability. To further the conversation about money, we got in touch with everyday people to explore how financial priorities and challenges evolve through different life stages and milestones.