How much are you earning per annum?

Originally Posted by Unregistered

Thank you for the feedback, appreciated

Glad to be of help, good luck!

How much does a retired couple in Singapore need today?

Assumptions:

1. HDB flat mortgage paid up and debt free.
2. No maid. Do household chores themselves.
3. Eat at hawker centres or home cooked food.
4. No car. Takes public transport.

Monthly expenses

1. Food and groceries = $500
2. Utilities = $100
3. Public transport = $50
4. Medical and insurance = $200
5. Holidays (pro rated) = $200
6. Miscellaneous = $150

Grand total = $1,200 per month

So, a retired couple can retire comfortably if they have $1,200 per month (or $14,400 per year) from savings, investments or room rental. You don’t need $100,000 per year to retire.

Just lead a humble, simple retirement. Lead an active and healthy retirement by regular exercise.

Originally Posted by Unregistered

How much does a retired couple in Singapore need today?

Assumptions:

1. HDB flat mortgage paid up and debt free.
2. No maid. Do household chores themselves.
3. Eat at hawker centres or home cooked food.
4. No car. Takes public transport.

Monthly expenses

1. Food and groceries = $500
2. Utilities = $100
3. Public transport = $50
4. Medical and insurance = $200
5. Holidays (pro rated) = $200
6. Miscellaneous = $150

Grand total = $1,200 per month

So, a retired couple can retire comfortably if they have $1,200 per month (or $14,400 per year) from savings, investments or room rental. You don’t need $100,000 per year to retire.

Just lead a humble, simple retirement. Lead an active and healthy retirement by regular exercise.

With $2400 a month into my retirement I would feel more secure at a healthy age of 55 for my wife and 60 for myself o sustain 30 to 40 years it will take a total of close to $1 million

Originally Posted by Unregistered

With $2400 a month into my retirement I would feel more secure at a healthy age of 55 for my wife and 60 for myself o sustain 30 to 40 years it will take a total of close to $1 million

You don't need $1m. Just rent out two of your HDB rooms at $1000 per room, you get $2000 pm. Ask your kids to give you $500 pm and you get $2500 pm in total.

Retirement income sources

1. Rent out 2 HDB rooms ($1000 per room) $2000 pm
2. CPF Life (husband and wife) $3500 pm
3. Children $500 pm

Total passive income $6000 pm or $72k pa
Spending $1200 pm or $14.4k pa
Savings $4800 pm or $57.6k pa

If you retire for 30 years, you would save $1.728m cash.

Your kids will get your HDB flat and $1.728m cash upon the death of you and wife.

Originally Posted by Unregistered

It is important to determine how stable their high paying jobs are as they are depending on their jobs to finance their huge mortgage of $1m.

It's all about calculated risks. No job is stable nowadays. $1million mortgage is not terribly large number relative to their savings rate, cash buffers levels, dual incomes status, a fully paid hdb that can generate cash each month. In fact I think they are in pretty good position. Of course a perfect storm can happen..both lose jobs & cash buffers used up for emergencies & hdb not able to rent & hdb value dropped thus cannot sell at profit. But seriously that is quite a low possibility for all these to happen at same time. If have to cater for all these possibilities, you'll never be able to take that step outwards and towards financial freedom as time flies by. Just stay at current state & regret later? or do your maths, know your risks, have mitigation plans, and go for it? Choose your poison!!!

Originally Posted by Unregistered

You don't need $1m. Just rent out two of your HDB rooms at $1000 per room, you get $2000 pm. Ask your kids to give you $500 pm and you get $2500 pm in total.

Just some thoughts...Renting out rooms while you are still staying in the same flat might not be so simple to do. Even same family members can have issues living together, how to live with strangers sharing your toilets, kitchen, fridge, washing machine etc? It can be so stressful that some people rather not earn the money this way.

Rely on CPF Life and other passive investments (dividend stocks, renting out second property) for retirement income. Renting out rooms is uncomfortable as you have to live with strangers. Why do you need 6k/month if you can't even afford a second property to rent out? If you only own 1 property by the time you retire, you can probably survive on 3k/month.

Originally Posted by Unregistered

Rely on CPF Life and other passive investments (dividend stocks, renting out second property) for retirement income. Renting out rooms is uncomfortable as you have to live with strangers. Why do you need 6k/month if you can't even afford a second property to rent out? If you only own 1 property by the time you retire, you can probably survive on 3k/month.

For us, we will retire in our current 3 bedroom condo (fully paid). Our passive income will be from CPF Life ($3500 pm), stocks dividends ($2000 pm) and our two children's allowances ($1000 pm in total). We will get $6500 pm. Our expenses will be $3000 pm, inclusive of short holidays. We can still save $3500 pm. We don't need to rent out our rooms.

Originally Posted by Unregistered

For us, we will retire in our current 3 bedroom condo (fully paid). Our passive income will be from CPF Life ($3500 pm), stocks dividends ($2000 pm) and our two children's allowances ($1000 pm in total). We will get $6500 pm. Our expenses will be $3000 pm, inclusive of short holidays. We can still save $3500 pm. We don't need to rent out our rooms.

ya la, retiring liao still want to rent out rooms so kang kor for wat?