How much are you earning per annum?

Originally Posted by Unregistered

May I know how old are you and what's your current net worth?

we are in our mid 30s with 1 kid.

We are holding about 1.2m now with only 1 4rm hdb. Our cash came from flipping properties since 2008. Currently we are about 90% cash and 10% stocks.

Save up and wait for the downturn to grow our money.

Originally Posted by Unregistered

What age group you belong to? What about your net worth?

If you are still young (< 45 yr old) you still have time on your side to accumulate a healthy nest egg. Your savings of 50% for a single income family is admirable. Keep it up!

On the other hand, if you are >50, and your net worth is below $2.5m, it is normal to feel insecure.

A quick run with any financial calculator found on the Internet will show you that to retire at age 60 and to live for another 25 yrs, living on just $5k a month, with an eroding inflation of 3.5%, you will need $2.5m at least. If this sum includes your home, it means that by 85, you will be homeless and nothing to pass on to your children.

Single income families should be a thing of past generations. In these challenging times and highly educated population, both spouses should come out and work.

Those figures are rubbish. You don't need 2.5m to live 25 years.

Financial planners always like to inflate figures to persuade people to buy more retirement plans etc.

Originally Posted by Unregistered

Those figures are rubbish. You don't need 2.5m to live 25 years.

Financial planners always like to inflate figures to persuade people to buy more retirement plans etc.

So how much is enough?

Hello, these calculators have nothing with financial advisors.

They are simple mathematical formulae made even simpler in the form of financial calculators so that lay men like you can do the sums ourselves.

In fact I will do a simple one for you right now.

At $5k per month for a couple, you will need $60k pa. Without inflation, if you live for 20 yrs say from 60 yrs old to 80 yrs old, you will $1.2M. Still follow? So if you think you will retire by 50, and live to 80, you will need $1.8M assuming no inflation. Simple maths.

You know there is no such thing as no inflation. It is only how much. Judging by some years with high inflation of 5% or more, and some years of low inflation like 2%, using 3.5% is a good gauge. To live for 20 yrs and yet maintain the same purchasing power of $5k throughout, the maths tell you that you will need $2.5m. No need to scare with the number needed if you want to retire at 50 and live to 80.

Sure there is always the option of downgrading further and further. From condo to HDB 4rm then 2rm etc, but I have not included unplanned medical expenses, long term illness which can suck the soul out of you.

Remember that the earlier you retire, the more you will need. It is simple Maths.

Originally Posted by Unregistered

Those figures are rubbish. You don't need 2.5m to live 25 years.

Financial planners always like to inflate figures to persuade people to buy more retirement plans etc.

Originally Posted by Unregistered

Hello, these calculators have nothing with financial advisors.

They are simple mathematical formulae made even simpler in the form of financial calculators so that lay men like you can do the sums ourselves.

In fact I will do a simple one for you right now.

At $5k per month for a couple, you will need $60k pa. Without inflation, if you live for 20 yrs say from 60 yrs old to 80 yrs old, you will $1.2M. Still follow? So if you think you will retire by 50, and live to 80, you will need $1.8M assuming no inflation. Simple maths.

You know there is no such thing as no inflation. It is only how much. Judging by some years with high inflation of 5% or more, and some years of low inflation like 2%, using 3.5% is a good gauge. To live for 20 yrs and yet maintain the same purchasing power of $5k throughout, the maths tell you that you will need $2.5m. No need to scare with the number needed if you want to retire at 50 and live to 80.

Sure there is always the option of downgrading further and further. From condo to HDB 4rm then 2rm etc, but I have not included unplanned medical expenses, long term illness which can suck the soul out of you.

Remember that the earlier you retire, the more you will need. It is simple Maths.

Many studies already conclude 9 out of 10 sinkies dont even have 1 mil, if need 2.5 mil to retire as middle class, 95% of us might as well all go out to beg on the streets.

Originally Posted by Unregistered

Hello, these calculators have nothing with financial advisors.

They are simple mathematical formulae made even simpler in the form of financial calculators so that lay men like you can do the sums ourselves.

In fact I will do a simple one for you right now.

At $5k per month for a couple, you will need $60k pa. Without inflation, if you live for 20 yrs say from 60 yrs old to 80 yrs old, you will $1.2M. Still follow? So if you think you will retire by 50, and live to 80, you will need $1.8M assuming no inflation. Simple maths.

You know there is no such thing as no inflation. It is only how much. Judging by some years with high inflation of 5% or more, and some years of low inflation like 2%, using 3.5% is a good gauge. To live for 20 yrs and yet maintain the same purchasing power of $5k throughout, the maths tell you that you will need $2.5m. No need to scare with the number needed if you want to retire at 50 and live to 80.

Sure there is always the option of downgrading further and further. From condo to HDB 4rm then 2rm etc, but I have not included unplanned medical expenses, long term illness which can suck the soul out of you.

Remember that the earlier you retire, the more you will need. It is simple Maths.

You know what, these are purely rubbish! Used pretty much by those so-called financial planners.

The above figures are for people who ARE ALREADY SPENDING 5k/month before retirement and aims to spend that much when retired. In fact, when you retire, I can tell you, you spend less than that. How much you need for retirement is relative.

I give you a real life example, my parents, who are retired at age 60/55.

Their expenditure before retirement is abut 4-5k a month. Now is about 3k/month.

Why the difference?

Previously, he drove the 5 series, paying instalments. When he planned for retirement, he sold his 5 series and paid full for an altis. Serves the same purpose but that contributed to alot of difference. The rest of the lifestyle is pretty much the same. Some months spent more, some months spent less. Plus and minus.

You see, it all depends on how you want to retire.

So all they need is: ~1m

OMG, you dudes are thicker than I thought.

The figures are not rubbish, just pure and simple Maths.

The money you need is up to the kind of lifestyle you aspire to lead in your retirement. The case used was for the couple who were spending $5k pm.

If you aspire to a $3k pm kind of lifestyle, then use the $3k figure to compute. $3k pm = $36k pa. If they retire at 60 and live to 85, that's a good 25 yrs. With a miraculous zero inflation over 25 yrs, the amount needed is $900k.

You can factor in any inflation rate to see how much the amount needs to grow. No need to argue. It is your retirement, not mine.

Originally Posted by Unregistered

You know what, these are purely rubbish! Used pretty much by those so-called financial planners.

The above figures are for people who ARE ALREADY SPENDING 5k/month before retirement and aims to spend that much when retired. In fact, when you retire, I can tell you, you spend less than that. How much you need for retirement is relative.

I give you a real life example, my parents, who are retired at age 60/55.

Their expenditure before retirement is abut 4-5k a month. Now is about 3k/month.

Why the difference?

Previously, he drove the 5 series, paying instalments. When he planned for retirement, he sold his 5 series and paid full for an altis. Serves the same purpose but that contributed to alot of difference. The rest of the lifestyle is pretty much the same. Some months spent more, some months spent less. Plus and minus.

You see, it all depends on how you want to retire.

So all they need is: ~1m

This problem is not unique to Singapore. Many elderly in the world are discovering they just could not afford to retire.

The gahmen is acutely aware of this especially since the baby boomers are nearing retirement age. They have already raised the retirement age a few times, and I think raising it to 65 / 67 is a matter of time. They are delaying the payout from annuity life to 65 so that people will continue to work longer. They introduced reverse mortgage to enable people to continue to stay in their HDB while they draw down loans off their homes.

It is not a pretty sight. The situation in the so called "great US" is a glaring example Haven't saved enough for retirement? What to do?

Think we Asians are better prepared because we saved more - both individually and by the governments.

Originally Posted by Unregistered

Many studies already conclude 9 out of 10 sinkies dont even have 1 mil, if need 2.5 mil to retire as middle class, 95% of us might as well all go out to beg on the streets.

Originally Posted by Unregistered

OMG, you dudes are thicker than I thought.

The figures are not rubbish, just pure and simple Maths.

The money you need is up to the kind of lifestyle you aspire to lead in your retirement. The case used was for the couple who were spending $5k pm.

If you aspire to a $3k pm kind of lifestyle, then use the $3k figure to compute. $3k pm = $36k pa. If they retire at 60 and live to 85, that's a good 25 yrs. With a miraculous zero inflation over 25 yrs, the amount needed is $900k.

You can factor in any inflation rate to see how much the amount needs to grow. No need to argue. It is your retirement, not mine.

But this does not take into account the possibility of investment income.

Here is one for the British. They are the worst prepared for retirement.

Retired Britons 'will run out of savings third way through post-work years' | Money | The Guardian

Originally Posted by Unregistered

This problem is not unique to Singapore. Many elderly in the world are discovering they just could not afford to retire.

The gahmen is acutely aware of this especially since the baby boomers are nearing retirement age. They have already raised the retirement age a few times, and I think raising it to 65 / 67 is a matter of time. They are delaying the payout from annuity life to 65 so that people will continue to work longer. They introduced reverse mortgage to enable people to continue to stay in their HDB while they draw down loans off their homes.

It is not a pretty sight. The situation in the so called "great US" is a glaring example Haven't saved enough for retirement? What to do?

Think we Asians are better prepared because we saved more - both individually and by the governments.