Quote:
Originally Posted by Unregistered
All these worries about inflation is nonsense. Inflation hits hard only if you indulge in luxury items. If you want to own a car during retirement, eat at high end restaurants, party all night, gamble all day, then even $30k pm in retirement will not be enough.
Mind you, there are families who live well with $5k pm. They have no problem paying the mortgage because they choose to buy cheap BTO flats for $200k (4 room flat in unmatured estates), they don't drive and they cook their own meals.
Likewise for a retired couple,they won't need much if they no longer have defendants and no more mortgage to pay. The basic necessities will cost them the most $2k pm. Add some frills, another $500 pm. So $30k pa is all they need. Just invest $600k in a blue chips stocks portfolio that gives 5% pa in dividends. These dividends will grow over time.
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So as what you have mentioned, you are earning 5k prior to retirement, your saving is 600k, that works out to be 120x your last drawn salary.
60% replacement income is 3k. You should be spending 3k instead of 2k. Still leave behind 500 every month to add up to your nest eggs.
Don't get overspend or your nest eggs won't last you through your old age.
Don't be scared to spend (under spend), if people can go for musang king, why should you settle for kampong durian.