It is sad that at this day and age, people are still looking to spend their retirement sitting at
HDB void decks whiling away their time, staring blankly and waiting for their numbers to be called. I can't believe people nowadays still accept this.
We are better educated, healthier and have longer lifespan (because of better nutrition, healthcare and technology in general) and earning more than our parents' generation. Why constrain / limit yourself to such a pointless existence just because you are retired from your job, especially when there are so much to do, learn and enjoy. More so when we are no longer tied down by work when retired!
This is what it is all about for me when I retire:
1. Go travelling, and this time, stay longer at places to really appreciate the different cultures, architecture, scenery and the people. My current holidays are rush-rush affairs and only to touristy spots. I mean what can you really do and see in 10 - 14 days of holidays if you are touring Europe or US?
2. Continue with my hobby of golf and tennis with my current group of kakis. This is how friendship and fellowship are forged and stay strong throughout. I would definitely want and need a car to lug my golf clubs especially to Johor. A car also allows my family to be closer as we travel together for meals, shows and other events. For retirees, a car is even more precious, as you would want to move around in comfort, and not have to jostle with the crowd on public transportation.
3. Attend live concerts. This is one of my favorite past times. Catching a musical passing through Singapore is what I am always on the lookout for. I have a few M'sian friends who would travel down here just to catch certain performances.
4. Have lunches/dinners with my kakis. This would become more regular as we retire. To catch up, and discuss investment stuff.
5. Continue with a maid to help out in daily household chores and cooking, freeing up time for both my wife and i to learn new things and be more involved in charitable activities.
6. Age in place. I would want to continue staying in my current condo. I am enjoying my stay here and don't want to go through the hassle of moving.
7. Looking after my investments. With my current portfolio (around $3.5m of investment), sometimes I feel that I am not giving it sufficient attention because of my work.
I also enjoy working and hope to build up my net worth more. Whether we are retired or still working, Life is to be lived! Don't sell yourself short by aiming for a lower retirement saving. There is much to learn, do and enjoy! Don't waste it sitting and staring blankly into space in the void decks.
Quote:
Originally Posted by Unregistered
The key to retirement is financial independence. As long as your expenses are covered by your savings or your passive income, then you are financially independent and hence able to retire. Some people who are not investment savvy just save as much as they can and when it reaches a certain amount, they will retire. The more savvy people will invest to generate regular dividends as passive income.
Ever wondered how old men and women sitting under your HDB blocks can retire? Most of them would have sufficient savings in addition to income from their children. Most important, they keep their expenses low. Many spend less than $500 pm per person or $1000 pm as a couple. Their HDB mortgage is paid and they are debt free. The ones that usually have problems financially are those who gamble, smoke and drink. These are sins which puts oneself on the path of financial and health destruction.
Keeping expenses low is important. Even if your income is $10k pm, if you spend $20k pm, you will not have enough to last a long retirement. You can retire long if your income is $3k pm but your expenses is $2k pm. In fact you will save $1k pm. How do you keep expenses low during retirement? You have to cut certain items which are considered as wasteful and unnecessary. These are some items:
1. Car. Cars are expensive to own and maintain. If you are retired, you don't really need a car as you no longer need to rush to work in the morning. You can save $2k pm by not owning a car.
2. Maid. Employing a maid is not cheap. When you are retired, you have a lot of free time. You can cook your own meals, do your own laundry and wash your own toilet. Don't be lazy. You will save $1k pm by not employing a maid.
3. Eat at hawker centers instead of restaurants. Or cook your own meals. These are cheaper options.
4. Plan your holidays. Go during non peak seasons as costs are much lower.
If you plan well, you can cut down as much as $4k or more per month from your current expenses. Currently, a retired couple can live comfortably with $3k pm provided they have no debt and lead a healthy life without smoking, drinking or gambling. If you are retiring in 10 years time, taking into account inflation, $4k pm would be ok for a retired couple.
Some sources of retirement income:
1. CPF Life. Gives you $3500 pm as a retired couple.
2. Lease buy back of your HDB flat.
3. Dividends from blue chips.
4. Room rental off your HDB flat rooms. $800 per room.
5. Cash savings.
6. Allowance from children. $500 from each child.
Just by CPF Life and renting out two rooms, you can get $5100 pm. This is more than enough for a retired couple today who live a modest life. |