We are 48 & 45 years old. Our total household income is $150k pa and our total cash savings is $30k pa. We are debt free. We own a paid up car and go for overseas holidays once a year. We eat at expensive restaurants once or twice a week. We enjoy the good life.
We plan to retire in 10 years time in our fully paid up luxurious, well renovated 3 bedroom condo unit. By 2027, we should have about $500k cash savings, enough for us to retire in our condo without the need to downgrade.
We will set aside the most $4k pm for our retirement expenses over the ten years from 55 to 65 years old, after taking inflation into consideration. This amounts to $480k. $4k pm is more than what we need in our retirement years.
Our expected expenses per month (for two retired persons) will be:
Food, groceries, utilities, condo fees, internet, mobile phone $1500
Public transport $100
Medical fees & insurance $800
Holidays (pro rated) $400
Misc $200
Total $3000
We are heavily insured so that we don't have to worry about any big medical expenses in our old age.
Our
CPF Life annuity (ERS) will give us passive income of $48k pa ($4k pm) starting from age 65 until we die.
We are very happy with our success. We have successfully upgraded from a
HDB flat to a modern luxury 3 bedroom private condominium.
We are contented and feel very fortunate and grateful since we have moved up the social ladder to be in the top 10% of Singapore's society. This is a big achievement for us because we both used to live in small
HDB flats when we were growing up.
Comparing with the rest of the world, we are in the top 0.5% of the global population. A world where more than a billion people still live in poverty.