How much does a retired couple, both aged 65, today need?
Assumptions:
1. 4 room
HDB flat is paid up.
2. No dependents. All children are grown up and living on their own.
3. Live a normal decent life. No bad habits such as smoking, drinking, gambling, etc.
4. Totally debt free.
Expenses, per month
Food, groceries & eating out $600
Utilities (can enjoy rebates), internet, phone $200
Public transport (can enjoy senior citizen concessions) $100
Entertainment and holidays (pro-rated) $300
Medical and insurance $300
Miscellaneous $200
Total $1700 pm or $20,400 pa
In 10 years’ time, how much does a retired couple, both aged 65 in 2027, assuming an annual inflation rate of 2.5%, need? About $2200 pm or $26.400 pa.
If you choose the Enhanced Retirement Sum for your
CPF Life, you will each get $1860 pm from age 65 until you die. So, in total, as a retired couple, you get $3720 pm or $44,640 pa until you die.
So, your
CPF can meet your retirement needs if you save enough in
CPF and do not spend away your
CPF monies.