One very important info is missing. How much he has for FD.
He has only 50K in emergency funds and CPF of 80K. I assume his FD is of similar size or twice as his emergency funds 50-100k.
It would means his vested amount is at least twice the size of his assets not including his property.
I would rather have more at FD/ emergency fund and annuity or policy with Cash back features.
I would also be more heavily tilted at bonds, at least 50% because I 吃老本。
Personally, I think REITs and ETFs are no less volatile than equity.
There are different, but at different time, can provide different heartache.
Also, the choice of companies at equities include cyclical aerospace SIA.
Given his small amount in CPF and lack of other sources of income: e.g. Properties.
I hardly think his portfolio is a "safe" one.
Do we really still want 4-6% returns at retirement? Especially 6%?
Of course, if he FD is rice bucket then ok.
I would continue to work if I am in a similar situation. But will work at a slower pace, if health permits.
Just a silly view