How much is enough for retirement in Singapore?

[lee_yl]

hercules:

I have been seriously using AceMoney to track my money for the last 2 years to have a good feel of where my money goes so that I can have a better idea of how much buffer I have for budget 'expansion' and 'contraction' instead of just by 'gut feel'.


Below is the average of my monthly expenses (Family refers to expenses of 4+1 pax at home while the rest is my personal expenditure):

http://i67.tinypic.com/29xbu5d.png\">

With this, it is quite clear cut of what I can do without if I cant afford (the helper, facial, etc) over the longer term or as I age further (red/white packets, holidays, etc).

With the current spending habit, I am confident that I can retire very comfortably without having to lower existing lifestyle.

Try to start a budget if can to have a better peace of mind.

Wow, your household expenses for 5pax seem to be on the low side. I can't get by with a $100 transport budget and definitely spend more than $10 for my haircut.

Assuming that you want to maintain such a lifestyle, less the helper and facial, you still need to prepare around $850K for retirement.

By the way, as to a helper, it's hard to predict whether we need one or not. My maternal grandma was wheelchair bound and needed a helper for her last couple of years. Fortunately, financial support was forthcoming from the family otherwise she wouldn't have quality care.

[zbear]

hercules:

I have been seriously using AceMoney to track my money for the last 2 years to have a good feel of where my money goes so that I can have a better idea of how much buffer I have for budget 'expansion' and 'contraction' instead of just by 'gut feel'.


Below is the average of my monthly expenses (Family refers to expenses of 4+1 pax at home while the rest is my personal expenditure):

http://i67.tinypic.com/29xbu5d.png\">

With this, it is quite clear cut of what I can do without if I cant afford (the helper, facial, etc) over the longer term or as I age further (red/white packets, holidays, etc).

With the current spending habit, I am confident that I can retire very comfortably without having to lower existing lifestyle.

Try to start a budget if can to have a better peace of mind.

I noticed that you do not have any meal expenses, does it mean your 3 meals are home cooked n you don't eat out?

You don't need to pay for insurance apart from the health insurance?

Are your other family expenses taken care of by your DH?

Hope u don't mind me asking as I am making a comparison with my family/self expenses.

[starlight1968sg]

Savings = income minus expenses ie inflow - outflow

[zbear]

MyPillow:

zbear, u are meticulous . i only get avg estimate last time.
i tend to spend passive income to reward myself n family
for working hard

it is indeed good to secure a saving amt first before all other expenditure
but as kids grew bigger, some may need to spend more to tuition / enrichment classes
does tuition/classes help in our own future retirement plans? if one dun think so, maybe should take a step back to re -strategise

MP, I agree that kids when they grow older, means more $$$ spent on them. Let's take it as long term investment although many have said - never depend on your kids when they grow up. However, both DH n I hold this belief that if we incalculate rite values n be good models, our kids will not dump us when we are old. I am keeping my fingers n toes crossed.

I am now waiting for my DD to finish her Uni education n start work.

Nevertheless, I have set aside sufficient retirement funds for both DH and I as both of us live simply. Both of us don't wish to live too long too.

As your kids are still young, you still need to take care of them. Once they grow up n be financially independent, your expenses will surely go down.

This is the cycle of life which everyone has to go through.

[hercules]

zbear:

I noticed that you do not have any meal expenses, does it mean your 3 meals are home cooked n you don't eat out?

You don't need to pay for insurance apart from the health insurance?

Are your other family expenses taken care of by your DH?

Hope u don't mind me asking as I am making a comparison with my family/self expenses.

Hi zbear

Eating out expenses are under 'entertainment'. Ever since I become more health conscious since few months back, this expense reduced by about 50% as I find no point to pay and take in unwanted stuff into my stomach.

For life insurance charges, I put them under 'Assets' in my AceMoney and so they don't reflect as expenses. Anyway, I can stop continue paying for my life insurances if I want coz all of them are at least 25 years old (while all my endowment policies had matured and collected money).

My husband is stationed overseas and back only about 4 times per year. My oldest is on her own overseas and does not need family financial support anymore (I bought a small apartment and rented to her and she is paying me $1000/month as rental). In my house, there is still a son, a nephew, a 6 grand niece, and a helper (the 4+1).

There is no 'other expenses' (unless extraordinary). So my expenses listed are a true picture of my current monthly numbers that went out of my bank account (every month end I will do my bank reconciliation to make sure that the credits and debits matched).

I am above 50 yo and so the way I view and classify my money can be a bit different from those with younger children.

[mummychua]

hercules:

I have been seriously using AceMoney to track my money for the last 2 years to have a good feel of where my money goes so that I can have a better idea of how much buffer I have for budget 'expansion' and 'contraction' instead of just by 'gut feel'.


Below is the average of my monthly expenses (Family refers to expenses of 4+1 pax at home while the rest is my personal expenditure):

http://i67.tinypic.com/29xbu5d.png\">

With this, it is quite clear cut of what I can do without if I cant afford (the helper, facial, etc) over the longer term or as I age further (red/white packets, holidays, etc).

With the current spending habit, I am confident that I can retire very comfortably without having to lower existing lifestyle.

Try to start a budget if can to have a better peace of mind.

your expenses seems to be rather low. this is just your own expenses, not including your spouse spending?

on a good month my family total expenses is ard 5k and on months where kindy sch fee and enrichment fees are due, we could be spending close to 7k. i did went around asking friends who had similar household configuration as my (2a, 2c) and most spend more than me and a handful have spending more than 10k a month.

i took a serious look into my expense but i can't seem to find anything that can be cut. really wonder how household can have expense less than 5k a mth.

[jetsetter]

hercules:


Why did you set aside $250 (as much as your monthly meal expenditure) for white/red packet? That's quite a lot.

Meals isn't = Entertainment I thought? Entertainment is like catching a movie or visiting an attraction, right?

You've budgeted quite a lot for Grooming & Massage

[MyPillow]

NO car/s , no condo mortgage , no tuition fees , no long holidays - is possible to keep way below $5k per mth

Based on Hercules model to guide, i think i am ready for retirement by the time i reach same age . By then insurances oso can cash out .(Thks for your sharing n info - Hercules)

js, i think red white invitations get more as one grow more senior :roll:

[janet88]

MyPillow:

js, i think red white invitations get more as one grow more senior :roll:

have to set aside more money for medical bills.

for me - no holidays (no travel bug), no maid, no tuition is considered savings. hdb mortgage should have completed.

[hercules]

lee_yl:

Wow, your household expenses for 5pax seem to be on the low side. I can't get by with a $100 transport budget and definitely spend more than $10 for my haircut.

Assuming that you want to maintain such a lifestyle, less the helper and facial, you still need to prepare around $850K for retirement.

By the way, as to a helper, it's hard to predict whether we need one or not. My maternal grandma was wheelchair bound and needed a helper for her last couple of years. Fortunately, financial support was forthcoming from the family otherwise she wouldn't have quality care.

Hi lee_yl

I am almost retired and only provide ad hoc consultation work and so I dont need to travel everyday. Even now if I have to go out, I tend to walk to or from Shenton Way office or meet friends in town so as to achieve my 10,000 steps/day target, and that 'save' even more (the purpose is not so much of saving money but to exercise).

My hair is of a 'maintenance free' style - all same length. Per cut is about $20 and I cut it max twice a year (the $10/month is I just rounded up on paper). I don't need to perm it or colour it. I am fine with the few strands of white hair here and there as I accept aging (and also I dont really need to see clients that sort of thing that may require someone to be 'more presentable'.)

I take your number of $850K for a spin in my excel. If only with this $850K and my CPF life income and no other things else, it can only last me till 77 yo. (I made a few assumptions below that inflation and saving return is 3% (except for these 3 years economy so bad inflation I set at zero), I get away from helper 3 years later and re-employ one at 75):


http://i64.tinypic.com/20l1ovq.png\">

Base on these assumptions, I will need

$1,000,000 to last til 80
$1,200,000 to last til 85
$1,500,000 to last til 91

Add on:
I dont proclaim to be a financial expert. My sharing is based on my 'common sense' only.