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Old 19-07-2015, 10:27 PM
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Originally Posted by Unregistered View Post
That's why there is a savings of $500 pm to take care of inflation. Also, non essential expenses like holidays can be reduced if needed. On top of that, at 65, when the CPF Life kicks in, a retired couple can get $3500 pm if they choose the highest payout option. So, don't be overly worried.

It is immaterial how much you are saving now. As years gone by, your salary will increase. Likewise, expenses will increase due to inflation.

As rule of thumb, if your last drawn salary is 10k, your saving (net liquid asset plus CPF Life) should be 120X, ie 1.2m to generate 84k replacement income @ 70%. You are also expected to have a mortgage free housing. Spending 60% of replacement income and leave behind 10% to cater for yearly inflation, and you will be safe.
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