How much is enough for retirement in Singapore?

[starlight1968sg]

Found the below while surfing:

http://www.sgmoneymatters.com/best-retirement-plans-guaranteed-income/

Am not related to the above.

[lee_yl]

DH met a relative yesterday. This uncle, who is a retiree, told him that he is now working for a friend @$7/hr.

Uncle is 60yo when he retired and he has to wait another 5years before he can receive his CPF Life monthly payouts. He was drawing a salary of $8K-$9K before he retired,
The uncle still has some financial obligations, with a car to finance and youngest child still in Uni, wife also a retiree. Other than that, he is financially sound.
Question is how to finance the "gap years" when one retires at 60 and CPF Life payouts only kick in at 65. Plus there is a lack of employment opportunities for those retirees who may still want to work, their experience and knowledge are vastly undervalued.

[starlight1968sg]

lee_yl:

Question is how to finance the \"gap years\" when one retires at 60 and CPF Life payouts only kick in at 65.

We have to fund ourselves during this period. Note that the payout from CPF LIFE is likely basic...
When I think of this, I can't help but feel worried.

[Yngmng]

Can consider annuity plans that start payout at 55 or 60 years old.

[sleepy]

Yngmng:

Can consider annuity plans that start payout at 55 or 60 years old.

When should one buy annuity plan? Cheaper to lock in at younger age or only buy when nearer to retirement age?

[starlight1968sg]

Yngmng:

Can consider annuity plans that start payout at 55 or 60 years old.

One needs to cough up quite a huge sum to buy an annuity.
An annuity is mainly to address longevity issue and likely not for this period of 5 years.

[Yngmng]

sleepy:

Yngmng:

Can consider annuity plans that start payout at 55 or 60 years old.

When should one buy annuity plan? Cheaper to lock in at younger age or only buy when nearer to retirement age?

I have not really done a comparison but logically, should be right. I bought a life policy in my early twenties. It has the option to convert to annuity plan when I reached 60. My sis bought one annuity plan in her mid thirties. If I just compare both. My premium is lower.

[Yngmng]

starlight1968sg:

Yngmng:

Can consider annuity plans that start payout at 55 or 60 years old.

One needs to cough up quite a huge sum to buy an annuity.
An annuity is mainly to address longevity issue and likely not for this period of 5 years.

There are plans that payout from age 55 for a period of 10 years. My sis bought one but she used her savings for the premium payment over a period of 5 years.

[TheAnswer]

lee_yl:

DH met a relative yesterday. This uncle, who is a retiree, told him that he is now working for a friend @$7/hr.

Uncle is 60yo when he retired and he has to wait another 5years before he can receive his CPF Life monthly payouts. He was drawing a salary of $8K-$9K before he retired,
The uncle still has some financial obligations, with a car to finance and youngest child still in Uni, wife also a retiree. Other than that, he is financially sound.
Question is how to finance the \"gap years\" when one retires at 60 and CPF Life payouts only kick in at 65. Plus there is a lack of employment opportunities for those retirees who may still want to work, their experience and knowledge are vastly undervalued.

Since he knew that he had to wait for 5 years, he should have saved enough before retiring. Cannot be every month use up all the money right? Especially since he previously had fairly good income. The CPF life cannot be his own source. Also, his youngest child since in Uni should work part time. How about the older kids? Dun tell me they r not contributing?

[Yngmng]

I know a close relative in her mid forties who has no savings nor investments. Her only assets are cpf and hdb flat ( not fully paid) But, she has a car, a maid and her kids attend tuition. She goes for her hair treatment and manicure sessions. Sometime, life is really a matter of choice…