How much is enough for retirement in Singapore?

[hercules]

TheAnswer:

I started working part time and saving what I earn from 17. Already used to busy life and also living way below my means. Learnt from my mum. People who dunno will think my parents are broke cos they are thrifty. I was conned for so many years myself cos they will always count dollars and cents though they really dun need to.

真人usually不露相。

It shows your parents' internal strength of knowing who they are in their own hearts and therefore don't need to compare with the Joneses.

This is a key strength that ideally we can build into our kids through modelling.

[starlight1968sg]

TheAnswer:

With more spare time during retirement, expenses may still go up and considering things will become more expensive also.. together with medical bills.. well.. really hard to say!

My main concern is the medical expenses during retirement

[TheAnswer]

starlight1968sg:

TheAnswer:

With more spare time during retirement, expenses may still go up and considering things will become more expensive also.. together with medical bills.. well.. really hard to say!

My main concern is the medical expenses during retirement

Get those insurance where they pay dollar for dollar then u won't have such concerns anymore.

[starlight1968sg]

TheAnswer:

starlight1968sg:

[quote=\"TheAnswer\"]With more spare time during retirement, expenses may still go up and considering things will become more expensive also.. together with medical bills.. well.. really hard to say!

My main concern is the medical expenses during retirement

Get those insurance where they pay dollar for dollar then u won't have such concerns anymore.[/quote]Not all outpatient bills can be covered

[MrsKiasu]

Mine is hospitalisation…must hospitalised first…what other insurance to better buy now?

[starlight1968sg]

MrsKiasu:

Mine is hospitalisation..must hospitalised first..what other insurance to better buy now?

Now all hv cpf MediShield life which helps to cover hospitalisation and surgical bills
Note, it does not mean when one is hospitalised, it is covered and no need to pay a single cent
There is a co pay and deductible portion, just car insurance

[hercules]

starlight1968sg:

sleepy:

Must have passive income then consider planning for retirement?

With passive income, your principal amt is intact. But how an average Joe can generate passive income of say 2-3k per mth to fund basic living expenses?
For me, if one has enough $$, say $ xk per mth times number of years, then when the $$ finishes, it is time to leave this world

I take your retirement income need of of $2K/month to generate the forecast plan for my frugal sis ($2K/month can give her a 'luxurious' life by her standard).

Now at about 60 yo her saving/investment is about $300K. By working for another 5+ years, assume this plus additional saving will reach $400K. So this $400K can give her 'passive income' by means of interest/dividends (conservatively I put at 3%).

So even without her renting out her room/s or her kids giving her monthly allowance, she still can live happily ever after (until 96 yo).


https://s23.postimg.org/tpafefvqz/2_K_pan_2.png\">


Retirement planning is really not rocket science.

edit: noted minor errors in the year of retirement in the spreadsheet but not significant and so not editing.

[MrsKiasu]

starlight1968sg:

MrsKiasu:

Mine is hospitalisation..must hospitalised first..what other insurance to better buy now?

Now all hv cpf MediShield life which helps to cover hospitalisation and surgical bills
Note, it does not mean when one is hospitalised, it is covered and no need to pay a single cent
There is a co pay and deductible portion, just car insurance

Our hospitalisation ins are thru GE/AIA with rider.

[janet88]

TheAnswer:

With more spare time during retirement, expenses may still go up and considering things will become more expensive also.. together with medical bills.. well.. really hard to say!

i agree with you. as it is, everything is getting expensive. money is also getting smaller in value.
mum went for partial knee replacement operation at mt alvernia because she heard so much about some scary experiences done at tan tock seng. as we age, medical issues will become a problem. i am only asset rich when i finish paying up for my hdb.

[lee_yl]

hercules:

lee_yl:

Hercules, thanks for sharing and you reminded me that I have to get my kids to work part-time when they are teens. I started helping out at my uncle's factory with my cousins ard 10yo every school holidays. Learning how to manage one's hard earned money must be something that starts from young!


A student can survive with a few dollars every day but when this same person starts working, even with a 5-figure salary may not be enough because he would want to upgrade from HDB to Condo, upgrade Jap car to Merc/BM etc. Thus, we need to take note of \"expectations inflation\". Best is salary keep going up and yet still continue to live way below your means.

Many parents think it's cruel to get their children to work at 17 or 18 but they dont feel it 'cruel' to get the children to study and study. I am all for character development through hard knock experiences to strengthen kids' internal resilience that study can't do.

My that near 60 yo sis' girl. Now about 28. She has been working for less than five years (started with about $3K+ salary and now is about $4K+) with a stable boyfriend. Other than paying off her about $30K study loan within about 3 years, now she has another $70K+ savings (that she asked me how to invest and I told her other than her monthly $300 ETF and life insurance, all to be in liquid form like stable FD coz she may need the money soon for wedding, etc).

She is also an avid traveler like her mum but she travels much further to exotic countries like Egypt, Mexico, Africa, etc, back packing in all those trips, spending and 'saving' at the same time.

This kind of children if their lives go on without much hiccups (such as sudden illnesses), then their financial journey is set to trail happily in every stage of their lives.

*You see some young working adults who lunch frequently at work on expensive salad lunch/gourmet burger/coffee, cab often, throw expensive wedding party / house renovation, etc, basically you can predict they are heading towards the opposite end of a healthy financial goal. Good habits need to be developed from young. Once shaped is real difficult to change. Plant gua gets gua.

No, it's not cruel to ask a 17 or 18 to work part-time especially since I started working earlier than that. My mother was very careful with money which makes me think twice before forking out my hard earned money to get things I fancy, it is good to learn through the hard way. But parents do take note that there were all sorts of funny people outside and at 17-18, the children may pick up the not so good habits.

Oh, I am impressed that your niece has accumulated $70K+ savings at 28yo. IMO, no need to buy ETFs on a monthly basis as the transaction cost will be high, end up the banks and brokers earning the money. Should just save up to buy quarterly or half yearly (May and Dec when the market is generally quieter).

I recall I set targets for myself when I was still in my teens, like when I hit 20, I want to see 5 figure amount in my bank acct, by 30, a 6 figure amount and by 40, a 7-figure amount in my saving accounts...