My spouse and I plan to retire in 5 years time when we hit 55. By then our children should be working, married and living in their own BTO flats.
We estimate we will need $48k pa ($4k pm) as a retired couple. Our three-bedroom condo, located in an upper middle class district, is now paid up and we will be spending just on food, utilities, medical and travel. We have comprehensive medical insurance plans to give us peace of mind. We are also debt free.
When we retire, we will not own a car as our condo is near an
MRT station, so traveling is not a problem. We do not need to employ a helper as we enjoy our privacy as a couple, anyway there is not much housework to do for just two persons.
Our passive income will reach $60k pa when we retire. We will get at least 4% pa investment return from an investment portfolio of $1.5m (excluding our condo). This is a conservative return, can be more. This income will be from age 55 to 64. When we reach 65, our passive income will jump because of
CPF Life which will give us an additional $40k pa. So, from age 65 until we die, our passive income will be $100k pa. We will save a lot since our expenses will be much lesser than $100k pa, even with inflation taken into consideration.
During retirement, we will keep ourselves busy by volunteering at charities, reading, swimming, working out in the gym, travelling during non peak seasons, socialising with fellow young retirees, watching the latest movies, etc.