How much are you earning per annum?

How much do you need to retire?

It depends on your desired retirement lifestyle. If you retire simply, you don't need much but if you want to travel the world and lead the high life during your retirement, you need to accumulate $10m before you can retire.

I am choosing a simple retirement lifestyle. I plan to cook my own meals or buy from hawker centres, travel by MRT, holiday overseas only once a year in nearby countries and spend my time reading, exercising in my condo pool and gym and do some social work.

With this in mind, I will only need about $3k pm for my spouse and I. Our condo is paid up so no more mortgage expenses.

We target to retire when we hit 55. By then we no longer have dependents (children working) and our passive income will be $4k pm. Our children will likely contribute at least $500 each and so we should have $5k pm in passive income. We can save $2k pm.

When we reach 65, we get the added bonus of $3.5k pm from our CPF Life. Our passive income at 65 will be $8.5k pm. We save $5.5k pm.

Originally Posted by PoorAF

Web developer
2 years

27k pa
after CPF... 22k pa

$300 for food
$100 for transport
$100 for medical
$200 for parents
$12.80 for aviva. My other insurance deducts from medisave.
$4 for phone (pre-paid)
I set aside $100 to reward myself each month but I usually don't spend it.
I save 1k to 1.2k per month.

I'm willing to learn but I only have a Diploma so... does anyone have any tips for me? Should I change job?

Should considering getting a degree. This will keep you in the bosses' radar for promotion.

Originally Posted by Unregistered

Don't laugh at the old folk, especially one who has $5m+ in networth. If you listen, you might pick up some tips.

This old folk spend just about half an hour to 1 hr each weekend to :

1. Review his $1m+ stock holdings. He doesn't really sell any shares, but usually ended up adding more to his holdings. All are dividend paying stocks, and mostly blue chips. He is a recent investor of reits because they pay higher rates of dividends.

2. Tally up his monthly dividends. His busiest (happiest) months are in May and August each year. In each of these 2 months alone, his dividend income crosses the $10k mark. Dividends in other months are also not too bad, around $3k - $5k. After treating his family to a good meal each week, he will reinvest his dividends. Last year, however, he used up his passive income to buy a new jap car.

3. Collect rental. Nowadays, he doesn't need to physically go to his rental condo to collect rent. Everything is through ibanking. So in a second or two, he checks to confirm his tenant has paid the rent for the month.

4. Not sure how else to put his other million, he decided to play it safe with the remaining million and put in a solid place gauranteed by govt backing - the CPF. He treats this money as his last resort (backup) money in case world economy collapses. At least he will still get $25k per year in CPF interest from his million.

Rest of the time, he enjoys golf, tennis and tea with his kakis. He doesn't fancy "fancy" cars. The new jap car serves him well. Reliable and fuel efficient. To pamper the wife, he got her a conti car.

Children are grown up, one already working, while the other in Uni. He gave them a leg up with $50k of investment in blue chip stock on their 21st birthdays.

Yes, go ahead and laugh at the old folk if you want, but I am sure he is not bothered.

Yes!
This should be life for the golden years.
I did exactly the same.
At age 60, I have retired 2 years ago.
REITs, blue chips to generate sufficient income for daily expenses with balance for reinvestment.
Allocate 10% for thrill.
Rental incomes for oversea travels.
Also have some collectibles for appreciation with friends.
Enjoy high end puerh tea with certain circle of kaki's.

Both children enjoying very respectable incomes.

What else we want?
一生何求?

Good points. Yes retirement is a lifestyle choice. Most Singaporeans (the 83% who live in HDB flats) will need even lesser to retire. As long as you don't spend indiscriminately and lead a humble life, your expenses will be modest. There are those who save so much such that they retire at an old age and they do not enjoy their retirement. There are those who retire at 65 and die at 66. All their wealth go to their children and wife, some even fighting for their millions.

We plan to retire by 50. As millionaires, we have more than sufficient. We have worked so hard for so many years. It is time for us to relax and enjoy our retirement. There are more successful ones who retired in their early 40s, these are multi millionaires.

Originally Posted by Unregistered

How much do you need to retire?

It depends on your desired retirement lifestyle. If you retire simply, you don't need much but if you want to travel the world and lead the high life during your retirement, you need to accumulate $10m before you can retire.

I am choosing a simple retirement lifestyle. I plan to cook my own meals or buy from hawker centres, travel by MRT, holiday overseas only once a year in nearby countries and spend my time reading, exercising in my condo pool and gym and do some social work.

With this in mind, I will only need about $3k pm for my spouse and I. Our condo is paid up so no more mortgage expenses.

We target to retire when we hit 55. By then we no longer have dependents (children working) and our passive income will be $4k pm. Our children will likely contribute at least $500 each and so we should have $5k pm in passive income. We can save $2k pm.

When we reach 65, we get the added bonus of $3.5k pm from our CPF Life. Our passive income at 65 will be $8.5k pm. We save $5.5k pm.

38 and 37 y.o. combined income $400K

Combined cash: $450K

Combined stocks and unit trusts: $400K

Combined CPF and endowment: $250K

Net property value (after minus loan): $1.8M

Intend to work another 10 years before retirement

We have quite comfortable jobs in banking with good work life balance

Originally Posted by Unregistered

38 and 37 y.o. combined income $400K

Combined cash: $450K

Combined stocks and unit trusts: $400K

Combined CPF and endowment: $250K

Net property value (after minus loan): $1.8M

Intend to work another 10 years before retirement

We have quite comfortable jobs in banking with good work life balance

Wa. High flyer.

For me and wife. Household income only $100k.
Two kids
Can only scrim thru. And hope retire at 65.

Husband, 45, Wife, 42, total income $120k pa. living in a resale condo bought at $800k, paid up. Drive a small car, with loan of $28k remaining. We will have to work until 60. Since we save $30k pm, we should have $450k when we reach 60. This $450k will fund our retirement from 60 to 65. We may just need $40k pa or $200k over 5 years. Once we hit 65, we get $3.6k pm from our CPF Life scheme. This will last until we die.

We have worked very hard for many, many years. We have achieved so much in our career. We sometimes feel we are not spending enough time with each other and the children.

We are millionaires but it feels meaningless if we don't find happiness in our family. We will retire when we reach 50. It is time we spend the riches that we have accumulated for so long. What is the point of living in a big house if it doesn't bring joy?

As millionaires and high flyers, we can afford to retire at 50. We are fortunate. We pity those in their 50s and 60s still working as they don't know what to do with their life if they stop working.

If you are confident with your "numbers", then just retire and enjoy the fruits of your labour. There is no need to worry about nor pity others. We are all different. In today's straits times, Home Section, there are 2 pages featuring Singaporeans who find purpose, happiness, dignity and of course, income, of working beyond the retirement age of 62. They chose to work not because of money but because they feel they can still contribute to the workforce / economy. Working makes them feel useful members of society, and they derive pride and dignity from working.

At 55 and beyond, our children would have grown up, and would be leading their own lives. Many housewives actually go into the workforce when their children are in the uni. So I don't really understand why people who are in their 50s want to spend more time with their children at a time when their children want to lead their own lives.

As I have pointed out before, the age from 50 onwards represents the best time to accumulate wealth because your children would have grown up, housing and car loans would have been paid off or greatly reduced. Stopping work at this point in time just doesn't make good sense.

At the end of the day, you should not begrudge people who chose to working and accumulating wealth. Because these people are there and more able to help the poor financially. If you stop work early (50 and younger), you will be constantly watching and cutting your spending, instead of enjoying life as you should. You run a real risk of running out of money because you have more 30 years of retirement to contend with. That is a long time to be constantly worrying if your money is enough. If you are in state of mind how are you to help the poor?

Originally Posted by Unregistered

We have worked very hard for many, many years. We have achieved so much in our career. We sometimes feel we are not spending enough time with each other and the children.

We are millionaires but it feels meaningless if we don't find happiness in our family. We will retire when we reach 50. It is time we spend the riches that we have accumulated for so long. What is the point of living in a big house if it doesn't bring joy?

As millionaires and high flyers, we can afford to retire at 50. We are fortunate. We pity those in their 50s and 60s still working as they don't know what to do with their life if they stop working.

I sensed that you are trying to get validation from others about your desire to retire by 50. Without giving us numbers, like how many millions you have, nobody is going to be able to comment meaningfully.

For the old folk with $5m+ networth, we know he can well retire and live comfortably without downgrading his lifestyle, but he is an advocate of working beyond 55. With conservative investment returns, he is probably earning passive income above $100k pa. Working is thus an option for him.

So what is your number? And are you generating sufficient passive income? If so, you don't need validation from anyone.

If your networth is $2m and below, you will be downgrading your lifestyle when you retire. That's a given.

With a monthly expense of $5k (for a comfortable retirement), this will require $60k pa.

In 10 years, it will be $600k
In 20, it will be $1.2m
In 30, it will be $1.8m

The above did not factor in, inflation!

Originally Posted by Unregistered

We have worked very hard for many, many years. We have achieved so much in our career. We sometimes feel we are not spending enough time with each other and the children.

We are millionaires but it feels meaningless if we don't find happiness in our family. We will retire when we reach 50. It is time we spend the riches that we have accumulated for so long. What is the point of living in a big house if it doesn't bring joy?

As millionaires and high flyers, we can afford to retire at 50. We are fortunate. We pity those in their 50s and 60s still working as they don't know what to do with their life if they stop working.