As we looked back, we realised how lucky and blessed we are. We came from low income families and used to live in small flats sharing with many people. Fast forward, we now earn a good living, making a total income of $150k pa, which is 50% above the median annual household income in Singapore. We are also blessed with two intelligent, filial and well brought up children.

We are also lucky and blessed to be able to upgrade to a condo at the right time. We have cleared the condo mortgage and now fully own the condo. This is a big achievement for us, given our past circumstances. To fully own a condo while still in our forties is a big achievement.

We enjoy a comfortable, middle income lifestyle. We can afford a condo, a car, overseas holidays twice a year, meals at restaurants, etc. We could not imagine such a luxurious lifestyle when we were young.

We plan to work hard and save for another ten years and then retire at 55. By then we will have enough cash savings to fund our retirement. Our children will be working, married and living with their spouses in their own homes.

From age 55 to 65, we will spend on average $3500 pm (taking inflation into consideration), spending $420k in total over the ten years. At 65, we will get $3600 pm from our CPF Life and $1000 pm from our children, giving us passive income of $4600 pm or $55k pa. We will spend $4000 pm or $48k pa. We have medical insurance to fund any big medical expenses.