We are in our late 40s, with a total earnings of $168k pa. We live in a three bedroom condo which has no mortgage. Now the condo is worth $980k. We own a two year old car which we paid in full cash.
We are now embarking on our retirement journey. We plan to retire at 60, which means we have about 12 years to prepare for it.
Here is our plan:
1. Save $35k pa cash for retirement, which means we save $420k cash over 12 years.
2. Spend on average $3.5k pm or $42k pa or $210k over 5 years from age 60 to 65.
3. At age 65, our Enhanced
CPF Life will pay us $3600 pm in total (two persons).
4. Buy annuities with cash, giving us $700 pm, for life.
5. Our filial children will give us $200 pm from each of them (not much as we don't want to burden them). Total = 2 x $200 = $400 pm.
6. So our total passive income from 65 = $4700 pm or $56.4k pa.
7. We retire in place in our condo. Our children and grandchildren can enjoy the condo facilities every weekend. We get to see them every weekend.
8. No need to employ maid as we will do our own simple household chores. This is also a form of light exercise for us. And to keep our mind active.
9. No need car as our condo is near bus stop and an
MRT station.
10. Holidays during non peak seasons, 2 times a year.
11. Total expenses $4k pm or $48k pa.
12. Total savings $8.4k pa.
Retirement routine and activities (healthy ageing):
1. Workout in the condo gym.
2. Swimming in the condo swimming pool.
3. Play tennis in the condo tennis court.
4. Walk at nature parks. Explore all the many nature parks in Singapore.
5. Volunteer at charities.
6. Attend health and wellness talks.
7. Participate in activities at community centres.
8. Reading lots of books and learn new knowledge.
9. Watching TV and movies.
10. Holidays.
11. Household chores.
12. Grocery shopping.
13. Cooking.
14. Learn new recipes.
15. Trading stocks.
16. Bring grandchildren to the zoo, bird park, science centre, museums, etc.
17. Take care of grandchildren, when necessary, to help out our busy children.
18. Many more activities.
Retirement is not boring.
If you are a boring person now, then your retirement will be boring.