How much is enough for retirement in Singapore?

[Way2GO]

It’s a moving target.

At the rate Singapore is going,
after u are ‘allowed to retire’ at 65,
we will all end up washing toilets, cleaning tables
n serving at MacDonalds for pocket money.

[LOLMum]

well, hubby and i have had our fair share of partying, travelling and treats. we are at this stage of our lives whereby we are looking at a more relaxing and simple lifestyle.


i hope to have at least $2m. but of course the more money the better it is :rubhands:

the $2m should exclude money set aside for kids' education. house should be fully paid and no loans when he retires.

the money is for medical needs rather than for big luxury items.

[Petlover]

Assuming that you’re spending roughly the same as you’re working. You’ll need at least 20 to 30 times your yearly salary for your retirement. Why ?

The reason is that you can use that amount of asset to generate a 4-5% yearly cashflow which is roughly equal to your salary.

[jedamum]

KSP:

How much saving do you think is enough for a good retirement in Singapore?

i cannot predict the future, but for a start, i think this should serve as rough guide....
https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/retirement/input1.asp

[tankee]

Petlover:

Assuming that you're spending roughly the same as you're working. You'll need at least 20 to 30 times your yearly salary for your retirement. Why ?

The reason is that you can use that amount of asset to generate a 4-5% yearly cashflow which is roughly equal to your salary.

did you consider inflation?

[kiasuproductscout]

1 Mil? hopefully with some recurring income and working part time?

[Petlover]

tankee:

Petlover:

Assuming that you're spending roughly the same as you're working. You'll need at least 20 to 30 times your yearly salary for your retirement. Why ?

The reason is that you can use that amount of asset to generate a 4-5% yearly cashflow which is roughly equal to your salary.

did you consider inflation?

You can choose certain types of asset in your portfolio which can catch up with the inflation, like real estate...

[KSP]

Well, looking at the situation in Singapore now. A lot of people don’t even have 500k when they reached 55. Considering they have fully paid up their apartment.

[2ppaamm]

KSP:

Well, looking at the situation in Singapore now. A lot of people don't even have 500k when they reached 55. Considering they have fully paid up their apartment.

Then they can now downgrade from their apartment or mortgage that and convert that into cash, right?

[Petlover]

yeah I agree ! For those who are asset rich but cash poor when they retire, reverse mortgage should be a good option for them to turn their asset into cash.