It is everyone's dream / wish that their retirement savings do not get depleted - for as long as they live, and upon death, they can bequeath the same starting amount or more to their loved ones. All this while, maintaining a certain standard of living in their retirement.

Well, it is actually possible to achieve such a state of savings. For the wealthy, this was what they have been doing for generations, handling their wealth down to the next generations.

What about for us wage earners? It is still possible - difficult but possible.

Assuming your retirement expense is $50k pa and you expect to live in retirement for 30 years. With an inflation of 3% pa, and an investment return, also of 3%, you will need a minimum of $1.5m to cover the 30 years in retirement. At the end of 30 years, you will completely draw down the entire $1.5m. So to have something to bequeath to your loved ones, you will need to have more than $1.5m at the start of your retirement.

For my case, since I want to maintain the same lifestyle and standard of living when retired, that we are enjoying now, our estimated expense is $100k pa. This means minimally I would need at the start of retirement a sum of $3m to last us 30 years in retirement with 3% inflation and 3% return on investment. So to leave something behind for my loved ones I would need more than $3m in savings.

With $6m in retirement savings, you can apportion $3m to fund your retirement for 30 years, while the other $3m is kept aside for bequest. At 3% inflation and 3% return on investment, the $3m set aside for retirement expenses will be totally consumed over 30 years, while the other $3m will grow back to $6m! (over 30 years)!

Likewise, if your annual expense in retirement is only $50k, you just need $3m in retirement savings to leave behind $3m in bequest to your loved ones - while still fully funding your retirement over 30 years.

What is a $100k pa lifestyle? We aim to travel overseas once or twice a year, attend live concerts, have a car, have a maid, continue with our present hobbies (golf, tennis etc), stay in our current condo....as what we are currently enjoying now.