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Old 06-01-2017, 09:39 PM
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Those who are not prepared for retirement should do this

1. Sell their condo away and get $1.2m cash, assuming it is fully paid up
2. Use $400k to buy a 4 room HDB flat and pay in full cash
3. Use the balance of $800k to buy annuities
4. Get payouts from CPF Life
5. Lead a simple, humble retirement lifestyle


Quote:
Originally Posted by Unregistered View Post
Yea, but I think it's most people actually are living beyond their means during working days rather than they 'cling' to their lifestyle and refuse to downgrade during retirement.

For e.g. if a couple makes $200k and lives a lifestyle of 60-70% of ~$130k and save the rest they can in theory retire at 65 and still maintain the $130k lifestyle.

The problem with most Sg professional / manager couple is they make $200k and live a lifestyle of $190-200k. Savings too small, lifestyle too high so double whammy cannot retire in peace.

Most are just banking on paying off mortgage and renting out the condo and live on rent. But reality is a typical 1000sqft condo in Sg is only fetching ~$35k gross and ~$30k net rent, not anywhere near to maintain their current lifestyle.
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