Many of us worked very hard all our lives. From Primary school all the way to the workforce, we worked hard. So it is natural that many of us want to retire at 55, the time when we can collect our CPF. How can we retire at 55? Here is the way.

1. Study hard and work hard. Get good jobs with good salaries.
2. Marry a good spouse who is also working.
3. Buy a cheap BTO 4 room HDB flat at 30. Buy those costing only $200k plus. Very cheap.
4. Stay in your flat and pay the mortgage within 25 years time. Can pay using CPF easily. If you're not a high flyer investment banker, don't upgrade to a condo. You shouldn't be a mortgage slave all your life.
5. Save $30k pa in cash. After 25 years, you save $750k.
6. Choose the ERS for your CPF Life. You get about $1900 pm for each person at 65. So, you and spouse will get $3800 pm or $45.6k pa in total as a retired couple.
7. At 55, you and spouse can retire since you have $750k in cash. If you need $30k pa in retirement expenses, you will only spend $300k from 55 to 65. You still have $450k to take care of future inflation.
8. At 65, you get your CPF Life.

How to save $30k pa in cash? Easy.

1. Don't own a car. It will cost you $2k pm or $24k pa to own and use the car. Over 25 years, you save $600k.
2. Don't employ a maid. It will cost you $1k pm or $12k pa. Over 25 years, you save $300k.
Total savings from not owning a car and not employing a maid is $36k pa. Over 25 years, you save $900k.

How to save more?

1. Don't go expensive holidays. Instead of spending $10k pa on holidays, just spend $5k pa. You save $5k pa and over 25 years, you save $125k.

2. Don't buy expensive luxury bags and shoes. Don't spend $5k pa on these. Make do with cheaper bags and shoes and spend $1k pa. You save $4k pa and over 25 years, you save $100k.

3. Don't smoke and drink. Let's say you spend $500 pm on cigarettes and alcohol. If you stop these, you save $6k pa and over 25 years, you save $150k.

4. Don't gamble. Let's say you spend $300 pm on gambling. If you stop gambling, you save $3600 pa and over 25 years, you save $90k.

So, if you follow all the above, you can save $1.365 million over 25 years.

This shows everyone with a decent salary can save a lot but most people will overspend. They want a car, they want to employ a maid, they want expensive holidays, they want luxury bags, they gamble, they smoke, they drink, they party, etc.

So it is not money not enough. Actually it is SPENDING TOO MUCH.

So, if you're not a high flyer investment banker, just lead a simple lifestyle. Don't act rich.

If you're spending beyond your means and has little savings, get ready to be working all your life.

How much does a retired couple today need per month? Assuming the couple is debt free and has no dependents at 55. Retire in place in their 4 room HDB flat.

Food, groceries, eating out $1000
Utilities $100
Public transport $100
Recreation $100
Medical and insurance $600
Holidays (pro rated) $200
Miscellaneous $400
Total $2500 pm (or $30k pa)

Plan your life carefully. You can retire comfortably at 55.