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Old 07-02-2023, 03:25 PM
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Thank you for sharing this detailed analysis. I find them useful. My spouse and I are thinking of retiring in our late 50s (maybe 58 years old) after collecting our CPF (after setting aside funds for the CPF Life Enhanced Retirement Sum which will give us $5000 pm at 65, in total). What we need is the funds to sustain our retirement from age 58 to 65 (7 years). We did our calculations and we will need about $3500 pm ($42k pa) for both persons.

We plan to mostly eat our nutritious home cooked food (my spouse is a great cook) and I will sell my car as we no longer need to rush to work in the morning. Luckily our condo mortgage is cleared and we are debt free. So we need $294k cash for the seven years. Our CPF funds which we can use plus cash savings are about $400k in total. So we plan to gradually use this for our retirement from age 58 to 65.

You are right. We don't need millions in the bank to retire. We also have a condo which we can sell if we need to but i don't think we need to do that based on our plan. We are looking forward to retire at 58. Not early retirement but good enough.

Originally Posted by Unregistered View Post
How much does a retiree need? It depends on the retirement lifestyle. If he eats at restaurants everyday, drive a sports car and live in a penthouse, expensive overseas holidays every year, then he would need a lot of money.

However if he leads a simple retirement lifestyle, live in a fully paid HDB flat, no car, no expensive restaurant meals everyday, then he doesn’t need a lot.

Food (hawker centre/ food court/ coffee shop) = 3 x 6 x 30 = $540 pm
Groceries = $300 pm
Utilities = $100 pm
Bus/ MRT = $60 pm
Medical insurance = $300 pm
Miscellaneous = $200 pm
Total $1500 pm or $18k pa

Can generate passive income from spare room rental (2 x 1000) = $2000 pm

If you want privacy, no need to rent out, you can sell your flat and buy a small flat

If you have $250k cash you can retire at 55. Spend $180k over 10 years. Emergency fund $70k. When you reach 65, you will get CPF Life.

So in summary you can retire at 55 if you have

CPF Life
Fully paid flat
$250k cash

Remember: Most of us will die by 85 years old. We may be sickly at 75 (10 years). So our best retirement age is from 55 to 75 (20 years). If you retire at 70, you only have 5 years of healthy retirement.
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