The reality for most couples is that at 55, their children are still studying either at college level or uni level. If at college level, the couple will have to set aside quite a sum of money for their children's uni education 2 to 4 years down the road. What that means is that if they have not saved up sufficiently they cannot retire at 55.
I have colleagues who are in their late fifties but are unable to retire (cannot afford to retire) until their last child finishes his/her uni studies. Only then, can they start saving for their retirement. They are thus looking at slogging until 62 at least!
Luckily for me and my wife, our 2 kids graduated from uni when we hit 56. We have also been frugal, saved diligently and invested throughout our working career. We are now looking at a passive income of $170k this year. Last year it was $160k.
The passive incomes have enabled us to save practically our full salaries each month which we promptly put into investment thereby increasing the passive income. A virtuous cycle of events.
Quote:
Originally Posted by Unregistered
There is no need to worry so much about retirement. As long as you can afford to buy a cheap 3 room HDB BTO flat and pay it up, you can retire comfortably. Make sure your CPF SA is enough for you to choose the CPF Life scheme which is enough for you and wife.
How to retire at 65
1. HDB flat paid up
2. CPF Life gives you $2k pm per person ($4k pm for a retired couple)
Plan your retirement activities well. You can do volunteer work at old folks homes, join activities in the community, take up hobbies, go short trip holidays, learn to cook, and many more things to do. Do your own house work and chores. Exercise and keep fit.
For high flyers, they can retire earlier than 65 if their condo is paid up and they have enough retirement income before 65.
How to retire at 55
1. Condo paid up
2. From age 55 to 65, must have passive income from investments to fund their daily expenses
3. CPF Life from age 65 onwards
Some highly successful high flyers such as top bankers and good entrepreneurs can retire in their 40s. |