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Old 04-05-2016, 07:52 PM
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There is a lot of discussion on retirement in this forum. Many posts is by an old man who doesn't represent the average Singaporean retiree as his retirement lifestyle is a lavish retirement lifestyle.

A more practical retirement lifestyle will be:

- Living in your current home (can be a condo or HDB flat) which is fully paid up. No more mortgage payments.
- No need to own a car as it is unnecessary for a retired couple who can move around in public transport during non-peak hours of the day hence avoiding the crowds. This will save you $2000 pm. Public transport cost $100 pm for a retired couple.
- No need to employ a maid as the household chores for a retired couple is minimal. You save $1000 pm.
- For food, a mixture of eating at hawker centres, eating home cooked food and dining at restaurants. Food and groceries, only need $1000 pm for a retired couple.
- Utilities, Internet, etc only $300 pm.
- Medical $200 pm.
- Entertainment and overseas holidays (pro rated) $600 pm.
- Misc $400 pm.
- Total $2500 pm.
- To take care of inflation, your expenses will grow from $2500 to $3500 over 20 years.

This amount can easily be achieved by your Enhanced CPF Life which gives $3600 pm for a retired couple at 65. Your children may give you $400 pm as allowance. If you have two children, then you will get $800 pm. Your passive income will then be $4400 pm.

So, if your retirement lifestyle is not lavish and wasteful, then you don't need much. Just focus on clearing your home loan and make sure you go for the Enhanced CPF Life.

My retirement plan is simple:
- I retire in my condo, which is paid up.
- My Enhanced CPF Life will pay me EVERY MONTH till death.
- I buy annuities with my cash savings to give me extra cash EVERY MONTH till death.
- My retirement lifestyle is simple - No car as my condo is near an MRT station and near shopping amenities. No need maid as household chores are very simple to do. Eat mostly at hawker centres and cook at home, sometimes eat at restaurants. Go holidays during non-peak seasons.
- Any allowances from our children will be a bonus. We don't need it but will gladly accept if they give. This is filial piety, which is lacking in today's society.

How is your retirement plan?

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