Don't be stupid. They can retire with $500k cash savings if they know how to invest. Buy good blue chips which give 5% dividend yield and they get $25k pa. Rent out two of their spare rooms in their
HDB flat for $800 pm each and they get $19.2k pa. They get allowance from their two children, each giving $200 pm, they get $4.8k pa. in total, their passive income will be $49k pa or $4k pm. They don't need $4k pm to retire. They just need $2.5k pm as long as they don't own a car and don't employ a helper. On top of that, they have their
CPF Life which they can save $3.6k pm.
Quote:
Originally Posted by Unregistered
How do people survive retirement with just $500k? Answer is they can't.
If they live very very simply, say spending $4k a month for a couple, then in 1 year they would spend $48k. In 10 years, they would spend $480k.
Assuming they stopped work at 60, by 70 they would have to start looking for work again.
That's why the gahmen is asking people to
1. Work as long as they can
2. Downgrade to 1/2 bedroom flats
3. Leaseback their flats
4. Rent out their spare rooms
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