How much are you earning per annum?

My plan is to work as long as I can, both to make myself useful to society and to keep my mind occupied. Financially, I think I have enough now to retire comfortably. But just in case, things do not go according to plan, and the company decides to give us oldies a golden handshake, the below financial plan will kick into action.

Currently, my wife and I easily squirreled 75% of our annual salary. The 25% that we spend each year is well covered by our passive income. So in the event that we retire, the passive income will be our main source of sustenance.

Dividends : $50k pa
Rental: $42k pa
Bonds interest : $15k pa
CPF interest : $32k pa (we are in our mid-50s, so we can withdraw the interest if we need)

Total : $139k pa. This amount is just about enough to cover our $120k pa expense.

As we are still working and hoped to continue working, the passive income is saved and reinvested.

When we reach 65, we are expecting to get:

Dividends : $60k pa
Rental : $42k pa (same property and assuming status quo in rental market)
Bonds : $30k pa
CPF interest : $35k pa (our combined OA will reach $1.4m)
CPF Annuity Life : $35k pa (combined for both of us)

Total about $200k pa.

So how much would we need/have to generate the above?

Stocks : $1.2m (bear in mind that we started investing years ago, so our invested amount is actually lower)

Rental : $1.1m (ok, we bought this rental property a little on the high side)
Bonds : $600 k
CPF OA : $1.4m (combined)
CPF Annuity CPF Life amount : ($161k for wife & $241k for myself)

Total principal required is $4.7m!

This does not include the home we stay in.

Don't be stupid. You can retire now by reducing your expenses. Stop feeding your kids as they are now adults. You don't need a maid. Don't be lazy to do the housework. You don't need a car when retired.

Originally Posted by Unregistered

My plan is to work as long as I can, both to make myself useful to society and to keep my mind occupied. Financially, I think I have enough now to retire comfortably. But just in case, things do not go according to plan, and the company decides to give us oldies a golden handshake, the below financial plan will kick into action.

Currently, my wife and I easily squirreled 75% of our annual salary. The 25% that we spend each year is well covered by our passive income. So in the event that we retire, the passive income will be our main source of sustenance.

Dividends : $50k pa
Rental: $42k pa
Bonds interest : $15k pa
CPF interest : $32k pa (we are in our mid-50s, so we can withdraw the interest if we need)

Total : $139k pa. This amount is just about enough to cover our $120k pa expense.

As we are still working and hoped to continue working, the passive income is saved and reinvested.

When we reach 65, we are expecting to get:

Dividends : $60k pa
Rental : $42k pa (same property and assuming status quo in rental market)
Bonds : $30k pa
CPF interest : $35k pa (our combined OA will reach $1.4m)
CPF Annuity Life : $35k pa (combined for both of us)

Total about $200k pa.

So how much would we need/have to generate the above?

Stocks : $1.2m (bear in mind that we started investing years ago, so our invested amount is actually lower)

Rental : $1.1m (ok, we bought this rental property a little on the high side)
Bonds : $600 k
CPF OA : $1.4m (combined)
CPF Annuity CPF Life amount : ($161k for wife & $241k for myself)

Total principal required is $4.7m!

This does not include the home we stay in.

Such irony. I think those who retire early are the lazy ones.

Why need to reduce expenses? Why you reach a certain age, it gets more important to live life as much as you can.

Originally Posted by Unregistered

Don't be stupid. You can retire now by reducing your expenses. Stop feeding your kids as they are now adults. You don't need a maid. Don't be lazy to do the housework. You don't need a car when retired.

Originally Posted by Unregistered

Such irony. I think those who retire early are the lazy ones.

Why need to reduce expenses? Why you reach a certain age, it gets more important to live life as much as you can.

Can you predict you will live long? What if you die before you even reach 60? All your wealth will go to your children and wife. They will then squander it away recklessly.

There are many people who retire young from salaried work. But they then spend their time in retirement doing social and charity work. They are definitely not lazy. They are noble and selfless people.

Originally Posted by Unregistered

Such irony. I think those who retire early are the lazy ones.

Why need to reduce expenses? Why you reach a certain age, it gets more important to live life as much as you can.

Our retirement plan at 55 (retire in Penang, beachfront)

Passive income at 55
Rent out HDB flat (fully paid up) S$2.5k pm
Stocks dividends S$2.5k pm
Total S$5k pm or RM15k pm

Penang cost of living
Rent a 3 bedroom luxury beachfront condominium RM3k pm
Car expenses RM500 pm (assume buy car in cash RM50k)
Food, groceries, restaurants and utilities RM2k pm
Medical and entertainment RM1k pm
Misc RM500 pm
Total spending RM7k pm
Savings RM8k pm

Passive income at 65
Rent out HDB flat (fully paid up) S$2.5k pm
Stocks dividends S$3k pm
CPF Life S$3.5k pm
Total income S$9k pm or RM27k pm
Total spending RM10k pm
Savings RM17k pm

Originally Posted by Unregistered

Our retirement plan at 55 (retire in Penang, beachfront)

Passive income at 55
Rent out HDB flat (fully paid up) S$2.5k pm
Stocks dividends S$2.5k pm
Total S$5k pm or RM15k pm

Penang cost of living
Rent a 3 bedroom luxury beachfront condominium RM3k pm
Car expenses RM500 pm (assume buy car in cash RM50k)
Food, groceries, restaurants and utilities RM2k pm
Medical and entertainment RM1k pm
Misc RM500 pm
Total spending RM7k pm
Savings RM8k pm

Passive income at 65
Rent out HDB flat (fully paid up) S$2.5k pm
Stocks dividends S$3k pm
CPF Life S$3.5k pm
Total income S$9k pm or RM27k pm
Total spending RM10k pm
Savings RM17k pm

If I don't wish to go Malaysia to retire,but stay in Singapore

Is it possible with the same amount of retirement funds?

I don't feel like uprooting Singapore after slogging for 30 years here.

Originally Posted by Unregistered

Can you predict you will live long? What if you die before you even reach 60? All your wealth will go to your children and wife. They will then squander it away recklessly.

Can you predict how long you will live? What if you die after you live beyond 100? All your wealth will be spent way before that and you will live your final years as a destitute at the void deck...LOL


The truth of the matter, to each his or her own decision. No need to parrot about dying early when we cannot even know how much s.h.it we will excrete tomorrow morning..... Simply said, life is unpredictable so to each his or her own...

Thank you for sharing. Your ideas are brilliant. My wife and I may follow your plans once our children starts working and get married. We are lucky that we have no more loans on our flat and we also have passive income from our investments. Penang is a nice place with many beautiful beaches. We've been there a few times and enjoyed our holidays there. I'm sure it is a good place to retire. Not so crowded and yet there are many modern amenities. With the low cost of retiring in Penang, we can then save more for us to travel the world.

Originally Posted by Unregistered

Our retirement plan at 55 (retire in Penang, beachfront)

Passive income at 55
Rent out HDB flat (fully paid up) S$2.5k pm
Stocks dividends S$2.5k pm
Total S$5k pm or RM15k pm

Penang cost of living
Rent a 3 bedroom luxury beachfront condominium RM3k pm
Car expenses RM500 pm (assume buy car in cash RM50k)
Food, groceries, restaurants and utilities RM2k pm
Medical and entertainment RM1k pm
Misc RM500 pm
Total spending RM7k pm
Savings RM8k pm

Passive income at 65
Rent out HDB flat (fully paid up) S$2.5k pm
Stocks dividends S$3k pm
CPF Life S$3.5k pm
Total income S$9k pm or RM27k pm
Total spending RM10k pm
Savings RM17k pm

Originally Posted by Unregistered

Our retirement plan at 55 (retire in Penang, beachfront)

Passive income at 55
Rent out HDB flat (fully paid up) S$2.5k pm
Stocks dividends S$2.5k pm
Total S$5k pm or RM15k pm

Penang cost of living
Rent a 3 bedroom luxury beachfront condominium RM3k pm
Car expenses RM500 pm (assume buy car in cash RM50k)
Food, groceries, restaurants and utilities RM2k pm
Medical and entertainment RM1k pm
Misc RM500 pm
Total spending RM7k pm
Savings RM8k pm

Passive income at 65
Rent out HDB flat (fully paid up) S$2.5k pm
Stocks dividends S$3k pm
CPF Life S$3.5k pm
Total income S$9k pm or RM27k pm
Total spending RM10k pm
Savings RM17k pm

Our retirement plan is similar, except it's in Singapore. No point leaving SG when old after working so hard and contributing to the country.

Passive income at 55
Rent out 2 private properties (fully paid up) S$6k pm
Stocks dividends S$2.5k pm
Total S$8.5k pm

Continue living in a city fringe private property with good view S$0
Car expenses S$2000 pm (buy a decent sedan at approximately S$250k)
Food, groceries, restaurants, utilities S$2000 pm
Medical S$500 pm (insurance covers full cost at any hospital, including private)
Holidays S$1000 pm (once a year holiday at around S$10k total, so about S$1000 pm)
Total spending S$5500 pm
Savings S$3000 pm

Passive income at 65
CPF Life S$7k pm (enhanced retirement sum so maximum payout is confirmed for life)
Holidays S$2000 pm (upgraded from once to twice a year)
Savings S$9000 pm