How much do you need when you retire at 65?

To determine the amount of money you need for your retirement expenses, you need to decide on your retirement lifestyle. Some couples say they just need $2k pm, some need $3k pm and there are those who want a lavish retirement lifestyle and they need $10k pm.

We will retire in 15 years time and I think we will need $5k pm or $60k pa. We will retire in place in our current condo. Our condo is paid up. We will have a modest retirement lifestyle.

I would like to have $1k pm extra to save. This can be used to take care of inflation.

How do I get $6k pm?

1. CPF Life Enhanced Retirement Sum (ERS) - ( $2k x 2 ) pm or $4k pm
2. Dividend income from a stocks portfolio worth $480k, which gives $2k pm (5% dividend yield).

To achieve this, we must

1. Build our CPF SA to $249k each by the time we reach 55.
2. Build our stocks portfolio to $480k by the time we reach 65.

How is your retirement plan? Are you retiring in place in your current home or are you planning to downgrade to a cheaper home?