Thank you for the comments and assurance. I'm looking forward to retirement. Maybe I will retire in 5 years time at 58. We hope to clear all our debts by then. In retirement, I will just need the expenses below for the two of us. Our kids should be on their own by then.
We will retire in our 3 bedder condo. We do not want to downgrade to a
HDB flat as we enjoy our condo facilities, especially the gymnasium and condo pool.
Food $600 pm (mostly cook at home and occasionally go to restaurants)
Utilities, condo fees, mobile phone, etc $500 pm
Public transport $100 pm
Insurance and medical $800 pm
Holidays $400 pm ($4800 pa - enough for regional holidays in 5-star luxury hotels for two persons. Will go during non peak seasons to enjoy good bargains. Also not crowded.)
Misc $100 pm
Total $2500 pm
We will need $30,000 pa or $210,000 over 7 years before we reach 65. This will be covered by our savings. We will choose the ERS so we will get $45,600 pa from our
CPF Life when we reach 65.
Quote:
Originally Posted by Unregistered
The short answer is you can retire now if you want to. The long answer is what kind of lifestyle do you expect after retirement. Work out how much you need to spend a year when you retire and start from there.
Without knowing how much disposable savings you have for investment, let's take $1m net worth as a base. At 5% returns, you will have $50k pa (and that's pretty conservative if you are a savvy investor) but I doubt you have $1m to investment since that is your net worth.
To retire now, downgrade to a HDB and take the maximum loan you can find. Adjust your lifestyle and reduce your expenses to less than $100k pa. Put all your money in passive investment that generates >$100K predictably and you'll be fine. |