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Old 31-12-2014, 07:24 PM
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This kind of question is best answered by yourself. Even if you approach professional financial advisors, they will provide you leading questions to help you establish your envisaged retirement lifestyle, and from there, to work out the funds needed to sustain the lifestyle.

If you can tolerate living like a hermit and prepared to downgrade, you will obviously not need much. If you see yourself still owning a car, have expensive hobbies and enjoy good food at restaurants then you will obviously need more. This is the demand part of the consideration.

The other part of the consideration is how able are you to generate the income and funds to sustain the lifestyle you want. For example, does your job have longevity? Can you see yourself working at your current job/company till 65? Will you be able to increase your savings? Typically, expenses will increase as your children grow up, peaking when they enter Uni. The local uni fees can vary from $8k pa to over $20k pa. Then the pocket money you give your children will be higher. It is not uncommon to see parents giving their children in the uni/poly at least $100 per week.

Luckily for us we are past that stage. Our 2 kids have graduated and one has already started working. But we still remember the cost of supporting both of them through uni. We are lucky that they were good enough to qualify for NUS, if overseas, the funds needed would certainly delay our retirement by 2 to 3 years! Though they studied at NUS, there is the exchange program to pay for. It can easily set you back $8-$10k to sponsor them for 6 months overseas stint.

At the end of the day, no income no talk. Make sure you are not out work for any period of time, as this will greatly impact your retirement fund build up.

I would like to suggest that you go read the plight of one PMET who was earning $15k a month, but was retrenched and now considering selling his home and declaring bankruptcy. ://.transitioning.org/2014/12/30/local-pmet-used-to-earn-15000month-now-struggling-as-a-cab-driver-and-selling-5-room-flat-to-settle-debts/


Quote:
Originally Posted by Unregistered View Post
Couple working in the commercial sector, 48/42. Total income, $195k pa. Savings, $30k pa. Bought a condo now worth $1.2m. Mortgage outstanding, $700k. Owns a 2.4L continental car, no loan. Children are in primary school. We live a modest middle class lifestyle. Holidays to Asian countries, twice a year. Total net worth, $1.3m.

Any comments whether we can retire at 65? How much is enough? How much do we need every month as retirement income in 20 years time?


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