Life is not like what you painted it out to be, for most people. It is not about the extremes, but mostly in-betweens. It is not about blindly scrimping and saving every cent you can or living extravagantly like there is no tomorrow.
Many people are able to save decently and still enjoying their life, if I may add, thoroughly.
They are not super high income earners, but ordinary folks. Looking at the household income statistics, any households in the top 30% should be living a comfortable lifestyle and still have a decent level of savings for their retirement.
The key to having enough savings for retirement lies in the "golden" period of between 50 to 60/65 years of age when they are still working. This is the period where for most typical households, their loan commitment, children's educational needs are tapering off, and early investments are paying dividends. This period is crucial to accumulate the bulk of their retirement fund.
For us, we saw our savings rate reach $300k for the first time when we hit 50, and it has steadily crept up to $350k last year (at 55). A combination of higher income, major loans paid off, and higher passive income. One child also graduated and started working. So looking forward, from 55 to 62/65, we are expecting to maintain the savings rate or increase it.
We have not had to live an austere lifestyle all this while, but neither did we live extravagantly. Basically we live the typical family lifestyle enjoying simple pleasures with an overseas holiday each year. And yes, we have a family car (Jap car) all the while.
Another thing people need to note is that the early one retires, the more savings is needed, but because you retire earlier, you tend to save less. On the other hand, the later you retire, the less fund you will need, but because you work longer, the more savings you are likely to accumulate. That is the reality and irony.
Quote:
Originally Posted by Unregistered
No matter how you plan for retirement, the only realistic way to have a good,safe and stable passive income when you retire is to build up a massive portfolio by the time by that time.
To do so there are only a few ways:
1) Inherit - Out of your control
2) Strike lottery - Out of your control
3) Live very modestly and scrimp and save whatever you can
4) Have a high flying career and whack as much of employment income as you can and save a portion of it
5) Make it big in business - High risk of losing everything and restart from zero in your late 30s early 40s
At the end of the day #1 & #2 only <1% can do, most of us either got to scrimp & save like mad towards retirement or cheong career or business and hopefully some big money will come about.
For me I have no interest of following some typical PMET career route like a typical SG and save high proportion and lower lifestyle for decades just to meet retirement target. That's like not living up to your dreams from age 24 to 67 in order to save up to retirment of your dreams from 67 to 82.
Thanks but no thanks for me.
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