How much is enough for retirement in Singapore?

[kyith]

starlight1968sg:

kyith:

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

which means the one with greatest uncertainty and unpredictability?

not really. its something i have the lowest experience and data.

[lee_yl]

Financially, I think DH and I are in good shape. Free of debts and probably some passive income from rental and dividends.


A neglected area is the mental and physical well being during retirement.

I am more worried that when I lose my mental faculty and physical ability and need to be taken care by a care-giver. One of my persistent fear is to be abused by the care giver. So I have been telling my kids, pls believe your poor mum should I tell tyou that my primary care-giver has been abusing me. Even with CCTVs, there are still blind spots.

[kyith]

lee_yl:

Financially, I think DH and I are in good shape. Free of debts and probably some passive income from rental and dividends.


A neglected area is the mental and physical well being during retirement.

I am more worried that when I lose my mental faculty and physical ability and need to be taken care by a care-giver. One of my persistent fear is to be abused by the care giver. So I have been telling my kids, pls believe your poor mum should I tell tyou that my primary care-giver has been abusing me. Even with CCTVs, there are still blind spots.

thats a good situation to be in and if you have a good idea of your expenses, plus you know the growth rate (conservative) of your stocks and property, you can estimate if you are financially secure (covers the subsistence living) or financially independent (covers the current going expenses)

in retirment you will also need to look at your ability to manage the stocks and property well when your mental cognitive abilities deteroriate. in the wealth building you are currently doing it is rather active management and requires good cognitive abilites which may deterorirate with age.

[TheAnswer]

lee_yl:

Financially, I think DH and I are in good shape. Free of debts and probably some passive income from rental and dividends.


A neglected area is the mental and physical well being during retirement.

I am more worried that when I lose my mental faculty and physical ability and need to be taken care by a care-giver. One of my persistent fear is to be abused by the care giver. So I have been telling my kids, pls believe your poor mum should I tell tyou that my primary care-giver has been abusing me. Even with CCTVs, there are still blind spots.

Not intending to get more property?Always thought that u r still looking for more property.. We are thinking to get one more then I think enough liao.. passive income is currently sufficient.. Like u, I am also concerned about mental and physical well being.. losing these 2 aspects is scary..

Hubby and I still want to chiong for a few more years then hopefully by the time I m 40 .. I can semi retire :xedfingers:
Hubby I think at most work until 55 only..I dun think hubby wants to work beyond that...

[MrsKiasu]

Oh gosh...how come today I think something is not very right at my side...we should be able to be debt free by 50years old based on our current commitment.. but but planning to buy another one wor..so we calculated... say by 65yo, hopefully debt free...then where is the 'lump sum' cash to retire? Only can get 'monthly' income and what happen if no tenants?...can still be a taxi driver if no more corporate job but what happen if health is no good?? Then want to liquidate by selling one property, what happen if at that time economy is so jialat that we can't find any buyer? Wouldn't that make us asset rich and cash poor same as the current problem that our past generation is facing now, holding on to the HDB or landed property but has lesser cash on hand :nailbite:


So now, is hugging the cash better than buying another property?

[TheAnswer]

MrsKiasu:

Oh gosh...how come today I think something is not very right at my side...we should be able to be debt free by 50years old based on our current commitment.. but but planning to buy another one wor..so we calculated... say by 65yo, hopefully debt free...then where is the 'lump sum' cash to retire? Only can get 'monthly' income and what happen if no tenants?...can still be a taxi driver if no more corporate job but what happen if health is no good?? Then want to liquidate by selling one property, what happen if at that time economy is so jialat that we can't find any buyer? Wouldn't that make us asset rich and cash poor same as the current problem that our past generation is facing now, holding on to the HDB or landed property but has lesser cash on hand :nailbite:


So now, is hugging the cash better than buying another property?

I think if half ur money is in property while the other half is in liquid investments, should be ok.. And of course decent amounts from insurance, savings plans should mature by then and liquid cash.. Monthly income can be from dividend, CPF etc.. I do not include rent as monthly income cos what if no tenants right?

For us, we definitely dun hug a lot of cash.. Nope..

Some calculations,
When I'm 40, my Sonny will be 17, Lizzie will be 8..
When hubby is 55, Sonny would be almost 30, Lizzie would be 20+ hopefully a grad by then..
It is the right time to retire leh..

[kyith]

MrsKiasu:

Oh gosh...how come today I think something is not very right at my side...we should be able to be debt free by 50years old based on our current commitment.. but but planning to buy another one wor..so we calculated... say by 65yo, hopefully debt free...then where is the 'lump sum' cash to retire? Only can get 'monthly' income and what happen if no tenants?...can still be a taxi driver if no more corporate job but what happen if health is no good?? Then want to liquidate by selling one property, what happen if at that time economy is so jialat that we can't find any buyer? Wouldn't that make us asset rich and cash poor same as the current problem that our past generation is facing now, holding on to the HDB or landed property but has lesser cash on hand :nailbite:


So now, is hugging the cash better than buying another property?

1) how can you speed up to get your family debt free?
2) you have 15 years to find a viable second career that you work on your own terms. be it consultant, part time corporate work, uber driver. you have 15 years to do that
3) your question should be: what is the ideal retirement allocation suitable for the last 30 years of your life
4) cut your rental by 50% from the market going rate. you should be able to get tenant. its not that big of an issue if the principal is paid off. you still get at least some cash flow
5) alternatively, diversified to a portfolio of reits, bonds, equity that generates cash flow

putting all the worse cases and not tackling them individually is going to create more uncertainty in life.

[pirated]

Ideally no lifestyle change or adjustment upon retirement, and passive income equal pre retirement

[TheAnswer]

pirated:

Ideally no lifestyle change or adjustment upon retirement, and passive income equal pre retirement

Agree with u.. working towards it..

[MrsKiasu]

kyith:

MrsKiasu:

Oh gosh...how come today I think something is not very right at my side...we should be able to be debt free by 50years old based on our current commitment.. but but planning to buy another one wor..so we calculated... say by 65yo, hopefully debt free...then where is the 'lump sum' cash to retire? Only can get 'monthly' income and what happen if no tenants?...can still be a taxi driver if no more corporate job but what happen if health is no good?? Then want to liquidate by selling one property, what happen if at that time economy is so jialat that we can't find any buyer? Wouldn't that make us asset rich and cash poor same as the current problem that our past generation is facing now, holding on to the HDB or landed property but has lesser cash on hand :nailbite:


So now, is hugging the cash better than buying another property?

1) how can you speed up to get your family debt free?
2) you have 15 years to find a viable second career that you work on your own terms. be it consultant, part time corporate work, uber driver. you have 15 years to do that
3) your question should be: what is the ideal retirement allocation suitable for the last 30 years of your life
4) cut your rental by 50% from the market going rate. you should be able to get tenant. its not that big of an issue if the principal is paid off. you still get at least some cash flow
5) alternatively, diversified to a portfolio of reits, bonds, equity that generates cash flow

putting all the worse cases and not tackling them individually is going to create more uncertainty in life.

Thanks for the analysis..

For us, to achieve the debt free status at a faster rate, I guess we got to .. 1) managing own property portfolio eg go for smaller/cheaper addition 2) hubby to work for higher salary and/or 3) I do my part in earning some income.

On how much is enough for the next 30 years after retirement, ok..just throw a figure for discussion purposes..let's say a $7k/mth of passive income fetched today for retirement income starting 20 years from now. Will that be enough for a couple? Just a very normal average lifestyle and assuming debt free by then. Also, kids should have completed their studies and can be independent.