How much is enough for retirement in Singapore?

[starlight1968sg]

zbear:

I still find it hard to believe financial gurus saying that S1m is not enough for 1 person to retire if you live a simple lifestyle. After all when you are in yr 50s or 60s, do you still need branded stuff, do you eat a lot?

Precisely!
At age 55, if one has 1 mil and can live till 90 (well above the average of 80 for men), then he has 1mil/35 years which means he has 2.3k per mth to spend, ignoring the inflation of cse.
The uncertainty would be the medical costs.

[MrsKiasu]

starlight1968sg:

I was relooking at the title of this thread.

To be more objective, I think the age at which one amass the specific amt of money is relevant. In other words, if one is at age 45, having 1 mil is not enough. But if one is at age 65, then having 1 mil with no debts except the unforeseen medical expenses is probably enough for a simple lifestyle.

Good for thinking exercise..

Only if the person stopped working/accummulating wealth at the age of 45? If this person continues to grow his nest, he will probably has more than $1m by the time he reaches 65..

Or if we want to compare who will have a more comfortable lifestyle after retirement...maybe at which age they could accumulate their first $1m (think it's abt the same as what you wrote in your first sentence)..provided they have same lifestyle, same commitment, same earning pattern etc..

But who knows, life always have surprises..today you may be having lesser than most of your friends.. and one day, you hit a TOTO jackpot and suddenly, you will be so much wealthier than many of your friends

[kyith]

When I saw the results, I think the folks here need $1 to 2 mil. The thing to think about is whether the retirees now need this amount of money.


When I went to the CPF Focus Group, they lead us through an exercise to determine why $1300/mth is adequate if you are retiring tomorrow. The exercise was quite useful for all to see if they have enough for retirement.

In my research on retirement, financial independence there are some interesting findings.

Most interesting about recent research is that expenses instead of inflated, tend to go down in retirement

[starlight1968sg]

I am most worried abt medical expenses. Although I have the Private Shield plan, I am not confident that it will cover ALL related expenses. This is the biggest unknown and fear factor in my case.

[zbear]

starlight1968sg:

I am most worried abt medical expenses. Although I have the Private Shield plan, I am not confident that it will cover ALL related expenses. This is the biggest unknown and fear factor in my case.

Medical costs can be reduced if you opt for subsidized wards n not private hospitals. The subsidy is quite substantial.

I know Restructured Hospitals have many financial assistance schemes to help those who face financial problems especially the senior citizens.

[starlight1968sg]

zbear:

starlight1968sg:

I am most worried abt medical expenses. Although I have the Private Shield plan, I am not confident that it will cover ALL related expenses. This is the biggest unknown and fear factor in my case.

Medical costs can be reduced if you opt for subsidized wards n not private hospitals. The subsidy is quite substantial.

I know Restructured Hospitals have many financial assistance schemes to help those who face financial problems especially the senior citizens.

I would go for the cheapest available option. I am most worried that due to whatever reasons, I hv to go to the private hospitals.
And in restructured hospitals, there are private and subsidized rates. The private rates in these hospitals are not cheap at all.

[zbear]

kyith:

Most interesting about recent research is that expenses instead of inflated, tend to go down in retirement

Correct based on my personal experience. I am in the retirement age but I find that I spend much lesser on my daily needs than before.

So why does everyone say - it's difficult to retire if you have been wise enough to save from young?

[starlight1968sg]

zbear:

So why does everyone say - it's difficult to retire if you have been wise enough to save from young?

Pardon?
I thought it would be EASY to retire if you have been wise enough to save from young.

[zbear]

starlight1968sg:

zbear:

So why does everyone say - it's difficult to retire if you have been wise enough to save from young?

Pardon?
I thought it would be EASY to retire if you have been wise enough to save from young.

Huh? Did I phrase my statement wrongly?

This is exactly what I want to say - why does everyone says it's difficult to retire when you have saved enough from young?

[kyith]

Medical expenses should usually be addressed by Medisave and your H&S plan.


No one have good data really. you have to collect as much of these long term case study and see whether it is good enough.

i evaluated and the weakest point of retirement is the healthcare system.