Growing up for us was not so easy as we were from low income families living in small flats. However, with sheer determination we managed to do well in school. Fast forward, we are now both 50 and count ourselves as successful based on where we came from. It feels like going from Third World to First World. We have good jobs with a current household income of $150k per year.

We upgraded from our flat to a condominium unit a few years ago. We sold our flat and bought the condo. We have since paid off the mortgage. For our family's comfort and convenience, we own a car. Sometimes we bought new while sometimes we bought used ones. As long as it can bring us from one place to another, we are happy.

In terms of combined net worth, it is about $1.6m, not a very high amount but certainly above average. We count ourselves lucky as we get to live in a nice condominium project as well as owning a car. These are assets which are considered highly here. We have achieved what we never thought was possible.

As for retirement, we will retire in our condo where we have many friends. Our neighbours are our good friends. Our retirement income will be from cpf life and annuities.

If you are in your late 40s or 50s, what's your journey like?

Dont say I say, but with a HH income of $150k pa or less than $10k pm (excluding bonuses) I would say it is not wise to live in a condo. You are putting your retirement in jeopardy.

Your combined networth of $1.6m which included your condo will not go far in retirement unless you can work till 65. My advise to you is to downgrade to HDB to free up the money for investment to grow your retirement fund. At 50, you dont have a lot of time to build up.

How much do you save per year currently?

Operation Supervisor
$37896 p.a (not enough)

Senior Product Specialist.
$32400. no bonus/13th month according to company policy

We now save about $70k pa since we are debt free. We will work for another 15 years until age 65, so we will save about $1m. We will buy annuities with this $1m cash. This will be on top of the monthly payout of $3.6k pm from our combined cpf life. We can enjoy our condo now and in retirement. No problem.

How about you? Where do you live? What's your combined net worth?

Are you and your spouse in secure jobs? Do you think you can maintain your salary and continue to save $70k pa as you get older?

Do you have children?

Of the $1.6m networth, how much of it is from the condo value? How much of it is in your CPF?

As you can see from my questions, there are many unknowns in life. "The past is not the present and the present is not the future" -- to borrow a quote from a blogger.

29.
10,500 posb bank(diminishing coz I am unemployed and need to Makan)
3.80 in wallet (leftover from buying carrot cake)

Congratulations to you and spouse. You are on a path towards a happy retirement. You don't need to downgrade as your retirement plan is good. Income from CPF Life and annuities will suffice. $1m worth of annuities will definitely give you a good flow of passive income for life in addition to your CPF Life payout.

Profile: Married couple, both 47, with 2 kids in secondary schools.

Household expenses

Condo (3 bedroom) mortgage and maintenance fees $30,000 pa ($2500 pm x 12)
Car loan $9,000 pa ($750 pm x 12)
Car petrol, maintenance, insurance, road tax, parking, etc $12,000 pa ($1000 pm x 12)
Food, groceries, eating out, utilities $24,000 pa ($2000 x 12)
Children's expenses including tuition, enrichment, food, etc $12,000 pa ($1000 pm x 12)
Family insurance $21,600 pa ($1800 pm x 12)
Family overseas holidays $12,000 pa
Parents' allowances (both sides in total) $19,200 pa ($1600 pm x 12)
Others and miscellaneous $24,000 pa ($2000 pm x 12)
Total $163,800 pa

Household combined income $213,800 pa
Household combined savings $50,000 pa
Current combined household net worth $1.2m

By the time we retire at 65, our condo will be fully owned. We will retire in our condo and we will retire with the income we get from our CPF Life as well as from our cash savings. If our kids follow our footsteps of filial piety, they will also give us some allowances (we won't expect it, but if they give, it will be a bonus).

This is an idea for those O&G engineers and bankers who recently got retrenched. Time to retire early and enjoy life.

Good retirement plan in KL or Penang (retire in luxury) for a retired couple at 55 years old (assuming no dependents)

Passive income at 55
Rent out fully paid HDB flat S$2.5k pm
Stocks dividends S$1k pm
Total S$3.5k pm or RM10.5k pm

KL or Penang cost of living
Rent a 3 bedroom condominium RM2k 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 RM6k pm
Savings RM4.5k pm

Passive income at 65
Rent out fully paid HDB flat S$2.5k pm
Stocks dividends S$1k pm
CPF Life (Enhanced Retirement Scheme), couple gets S$3.5k pm
Total income S$7k pm or RM21k pm
Total spending RM8k pm
Savings RM13k pm

This retirement plan allows you to live in a nice condo and drive a nice car. You can go holidays all over the world every year if you want to since you will have lots of savings.
Your key retirement assets are: 1. HDB flat 2. CPF Life 3. Dividend blue chip stocks.