Thanks for sharing your plans in detail. My plan is to retire at 65 in our condo so that we can also have an active retirement lifestyle. We envisage ourselves spending time in the condo pool, gym and tennis court. I will invite friends over to play tennis. I will not have a maid as we love cooking our own meals. The household chores for a retired couple should be manageable. As for car, we will stop driving when we retire as our condo is walking distance to an
MRT station and a small shopping mall.
We plan to choose the
CPF Life which gives the highest payout of $1750 pm for each person or $3500 pm as a couple. We reckon that we will need $5000 pm for our retirement so we are now $1500 pm short. One way is to save $450k to meet the shortfall assuming we will retire up to 90. Another way is to buy an investment to give us income of $1500 pm forever. Do you have any suggestions what kind of financial product I can buy to give me $1500 pm? Thank you.
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Originally Posted by Unregistered
LOL, I cannot tell you when and how you should retire because you didnt tell us what kind of lifestyle you desire to have in retirement.
However I can share with you what I know and how I am preparing for retirement.
First, I know what kind of lifestyle I want/desire in retirement.
1. A car for us to move around in comfort and privacy
2. A maid to take care of our household chores - cleaning, laundry and cooking (more important as we get older)
3. Attend live concerts and performances
4. Occasional travels
5. Hobbies like dancing, golf etc..
In short, I want an active retirement lifestyle.
For the above, I estimated we would need $8k per month or $96K pa.
To keep the calculation simple, lets ignore inflation.
1. Expenses for 1yr in retirement = $96K
2. Expenses for 5 yrs in retirement = $480k
3. Expenses for 10 yrs in retirement = $960K
4. Expenses for 15 yrs = $1.44M
5. Expenses for 20 yrs = $1.92M
6. Expenses for 25 yrs = $2.4M
7. Expenses for 30 yrs = $2.88M
The calculations showed that for the lifestyle we desired, we better work till we are at least 60, and save at least $2.88M for 30 years of retirement. This should not include the home we are staying in, so at least we can leave behind the home to our children when our time is up.
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