Quote:
Originally Posted by Unregistered
Contented upper middle class, late 40s couple.
Total earnings $180k pa. Home is a 3 bedder luxury condo, paid up.
Bought a new car with cash savings. No loan.
We grew up in a lower income family.
We are happy to climb up the social ladder.
We are better than our parents' generation.
Total net worth $2m.
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You can retire at 55 yo without the need to downgrade. You can retire in place in your condo to enjoy the swimming pool and gym everyday.
Let's say your condo is worth $1m and your combined
CPF is $500k. This means you have $500k cash to spend for retirement from 55 yo to 65 yo. At 65, your
CPF Life will give a combined $4k pm or $48k pa.
Let's say you spend $3k pm or $36k pa from 55 yo to 65 yo, provided you have no maid and no car. So in total you will spend $360k over ten years. This is covered by the $500k cash.
When you pass away, you can leave behind the condo to your children.