It is not relevant to know how you fare compared to others. What is more important is how prepared you will be, in retirement.
If you expect that your retirement lifestyle is one where you and your spouse still travels, own a car, have a maid and stay in your condo, then be prepared to spend about $100k pa in today's dollars. Then you can do a back-of-the-envelope calculation to see how much you need to set aside.
At annual expense of $100k, the amount you need to set aside for retirement is:
10 years in retirement : retirement fund needed = $1m
15 years in retirement : fund needed = $1.5m
20 years in retirement : fund needed = $2m
25 years in retirement : fund needed = $2.5m
Etc..
Bear in mind, in the above estimation, I have not included the eroding effect of inflation on your retirement fund! And remember, your retirement fund should not include the value of your home, otherwise downgrading is a foregone conclusion.
Thus looking at your networth currently, you should aim to work till 65 or more, cut down on expenses to save and invest, or downgrade your retirement lifestyle, for eg. stay in a
HDB.
Quote:
Originally Posted by Unregistered
I thank the many people here who share their finances. I'm motivated to share ours to get opinions on how our situation is.
Age: Mid 40s.
Married couple with two children.
We earn $15k pm (total annual income divided by 12). We save $3k pm.
Home: Mass market condo, less than 5 years old, worth $950k. Mortgage outstanding $190k. Mortgage instalment $1200 pm using CPF. MSR (mortgage servicing ratio) = 8% only.
Car is fully paid up in cash.
Cash and CPF savings in total $600k.
Total net worth (condo net asset value + cash + CPF + car) $1.43m.
We are almost debt free, our only loan is the $190k outstanding condo mortgage.
We save $36k pa. Our TDSR (total debt servicing ratio) is only 8%. Current ruling on TDSR is 60%.
How are we doing financially? Any financial experts here? |