We are the typical average local uncle and auntie who plan to retire at age 55. At 55, we will collect our CPF monies after setting aside monies for the CPF Life ERS.

As both of us have always been frugal, after taking into account an inflation rate of 3% pa, we will just need $500k (or lesser) to spend from age 55 to 65. This is mainly for our food, groceries, utilities, public transport, insurance, entertainment and holidays. Our retirement expenses from age 55 to 65 will be funded by our cash savings, CPF monies and dividends. We will retire in place in our current home. We have good, friendly neighbours.

From age 65 onwards, we will get $4k pm from CPF Life and $1k pm from our dividends. Total passive income $5k pm or $60k pa. This is more than what both of us need. Having adequate insurance (bought many years ago) and Medisave savings give us peace of mind.

We hope to remain healthy in old age by living a healthy lifestyle of regular exercising, eating healthy food, less sugar, less stress, enough rest, enough sleep, etc. We are looking forward to our retirement at 55.