We plan to retire in seven years time at 55 after we collect our
CPF. Our condominium home is paid up. We envisage our children to be working by the time we retire at 55.
We estimate that we (just the two of us) will need the most $48k pa ($4k pm) for retirement expenses upon our retirement at 55. This expenses will be covered 50% by our passive income from dividends ($24k pa) and 50% from drawing down our cash savings ($24k pa).
When we retire at 55, we will not need a car as our home is near an
MRT station which connects us to many amenities. We also believe in a car lite society and we don't want to contribute to air pollution.
By 65, we will receive $4k pm or $48k pa (from
CPF Life) on top of the $24k pa from dividends. So at 65, our passive income will be $72k pa, which is so much more than what we need. Any surplus will be saved into our cash savings.
So, we will leave behind our condominium unit, cash and
CPF savings, dividend stocks and
CPF Life bequests to our children when we pass away. This is considered a lot. Anyway we don't want to spoil our children by leaving behind too much wealth. We want them to work hard and have the pride to accumulate their own wealth. This is our family's core principles and ethos. We came from low income families and we value hard work.