How much are you earning per annum?

Oops, am I that identifiable?

Originally Posted by Unregistered

Why are you concerned about sustaining yourselves from now till 65? Are you both already retired? I thought you are still working and saving $300k pa? Are you the old engineer or someone else?

Don't worry.

For those retrenched ex-PMETs out there, such as ex-engineers and ex-bankers, do not be sad. Instead of worrying so much, you can just retire assuming you no longer have any dependents at age 55.

Good retirement plan in KL or Penang for a 55 years old retired couple.

Passive income
Rent out fully paid HDB flat S$2.5k pm or RM7.5k pm

KL or Penang cost of living
Rent a 2 bedroom condominium RM1.5k pm
Car expenses RM500 pm (assume buy used car in cash RM30k)
Food, groceries and utilities RM1.5k pm
Misc RM1k pm
Total spending RM4.5k pm
Savings RM3k pm

This retirement plan allows you to live in a condo and drive a car.

Your key retirement asset: HDB flat (we are very fortunate since we all get to buy cheap BTO HDB flats when we got married)

Pertinent questions. From this year (2016) onwards, you don't need to decide on which annuity life plan to go on until you are 65. This means your money will remain in the RA and earning 4% until 65 where then they will deduct some money to buy your annuity life plan. At the same time your monthly payout commences.

Can you withdraw the interest earned in your RA? Or when you pledge your property so that you are required to keep only the BRS which is $80.5k currently, can you withdraw the rest of RA money including the interest earned?

When you decide to pledge your property - anytime from 55 to 65, you are only required to keep the BRS (basic retirement sum) which is $80.5k currently - half of the FRS. But here's the catch, you are only allowed to withdraw half of the FRS, that is, $80.5k. You are not allowed to withdraw the interest earned.

Here's another thing. Any top ups above the FRS, are not allowed to be withdrawn, even when you pledge your property.

So you have to decide carefully whether you want to put more money into your RA because you cannot take it out except through the monthly payout when you reach 65! For us, we decided to "bear the pain" now for the future.

And finally yes, we will continue to work while we can, when we are still wanted. You want to live a certain lifestyle, you work for it. Our lifestyle is not an extravagant one, but cost of living is not low here. $100k pa allows us to have a maid, car, overseas vacation yearly.

Originally Posted by lazyplane

This is really new to me and good news to me. I am seeking to max out my RA to ERS as well when i hit 55 as RA interest yield of 4% is super attractive in this environment.

Can i check :
If RA interest is not considered, then does my "new" contribution automatically goes into my CPF life "plan" or i can withdraw ? Eg is the rules for withdrawal the standard rules ie i can withdraw the excess RA above the min sum if ever i decide ?

If the latter, then i confirm will be maxing out the CPF bank !

On your point of requiring 850k before hitting 65
... yep. i understand your point and that why SG all are working to 65...
But if i am in your shoes now, i doubt i really "worry" cos i am sure you can manage this with your other non cpf related savings.

You sound a person like you have did your sums !

Good luck ! And best wishes to retirement !

32 year old guy
Banking Regulatory Compliance
220k p/a base

[lazyplane]

I don't understand this .


I thought as long as you met frs ( no pledge of property ) then you can withdraw anything above frs once u hit 55 and beyond. If you sign up for ers then it will be anything above ers ?


Why is there another layer of restrictions?

Originally Posted by Unregistered

Pertinent questions. From this year (2016) onwards, you don't need to decide on which annuity life plan to go on until you are 65. This means your money will remain in the RA and earning 4% until 65 where then they will deduct some money to buy your annuity life plan. At the same time your monthly payout commences.

Can you withdraw the interest earned in your RA? Or when you pledge your property so that you are required to keep only the BRS which is $80.5k currently, can you withdraw the rest of RA money including the interest earned?

When you decide to pledge your property - anytime from 55 to 65, you are only required to keep the BRS (basic retirement sum) which is $80.5k currently - half of the FRS. But here's the catch, you are only allowed to withdraw half of the FRS, that is, $80.5k. You are not allowed to withdraw the interest earned.

Here's another thing. Any top ups above the FRS, are not allowed to be withdrawn, even when you pledge your property.

So you have to decide carefully whether you want to put more money into your RA because you cannot take it out except through the monthly payout when you reach 65! For us, we decided to "bear the pain" now for the future.

And finally yes, we will continue to work while we can, when we are still wanted. You want to live a certain lifestyle, you work for it. Our lifestyle is not an extravagant one, but cost of living is not low here. $100k pa allows us to have a maid, car, overseas vacation yearly.

The market (STI) has climbed back above 2900 points putting back $100k into my stock holdings. Still $100k into the red, but it's ok as I am after dividends. From Jan to Mar this year, total dividends collected is $7.5k.

Have you guys managed to pick up any good stocks when the STI was beaten down? As posted below, my two small buys of DBS and OCBC turned out to be good picks. DBS is now at $16 and OCBC at $9+. I accumulate these blue chips for dividends at opportune time, except that this time because of the topping up of ERS (with cash) I could only by 500 shares of each.

The other stocks I "bought" during that time were Ascendas Reits, Raffles Medical and Keppel Reits - all through their dividen reinvestment plan. Meaning, instead of collecting cash dividend payout, I opted to receive more shares.

Originally Posted by Unregistered

The STI has rebounded stoutly the last 2 days and possibly will climb some more today taking the lead from DJIA. Does this point to the end of the bear market?

More importantly, have you guys pick up any gems during the recent sell down?

Because of my topping up my CPF RA to the full ERS with cash, I have only enough cash to grab 500 DBS shares (at $13.20), and 500 OCBC shares (at $7.56).

Nevertheless I was relieved that the rebound has "put back" $43k into my stock value in just 2 days. Overall the value of my holding is still down by $200k plus. Dividend wise, it seems to be holding up with some stock cutting dividends like sembmarine and kepcorp but others have increased theirs like SGX, Singpost and some of my REITs. As at Feb, I have collected $6k in dividends.

With the stock market recovered and many people getting bonuses, COE prices will also recover.

Not impossible if

Cat A rise to $50k next week and then $60k and $70k in subsequent months.

Cat B rise to $60k next week and then $70k and $80k in subsequent months.

The recent fall in COE prices is likely to be temporary and will recover soon and move much higher. More people are getting richer with higher salaries, bonuses and rising stock market.

Huat Ah!!!!!

Originally Posted by Unregistered

The market (STI) has climbed back above 2900 points putting back $100k into my stock holdings. Still $100k into the red, but it's ok as I am after dividends. From Jan to Mar this year, total dividends collected is $7.5k.

Have you guys managed to pick up any good stocks when the STI was beaten down? As posted below, my two small buys of DBS and OCBC turned out to be good picks. DBS is now at $16 and OCBC at $9+. I accumulate these blue chips for dividends at opportune time, except that this time because of the topping up of ERS (with cash) I could only by 500 shares of each.

The other stocks I "bought" during that time were Ascendas Reits, Raffles Medical and Keppel Reits - all through their dividen reinvestment plan. Meaning, instead of collecting cash dividend payout, I opted to receive more shares.

Originally Posted by Unregistered

With the stock market recovered and many people getting bonuses, COE prices will also recover.

Not impossible if

Cat A rise to $50k next week and then $60k and $70k in subsequent months.

Cat B rise to $60k next week and then $70k and $80k in subsequent months.

The recent fall in COE prices is likely to be temporary and will recover soon and move much higher. More people are getting richer with higher salaries, bonuses and rising stock market.

Huat Ah!!!!!

I feel so lucky. I caught the COE at the recent lowest of $38k

I hope COE will continue to rise back to $80k

So I can sell my car in 5 years time and get to drive if for free

Huat ah!

Don't listen to the idiot who said COE will crash to $10k.

Most of us dream of retiring at some point in our working life to do the things we want. Some want to retire before they reach 50 while others even earlier.

In reality, most of us would have to slog till the official retirement age of 62 or later. Simply because of "money no enough" - to borrow the phrase from Jack Neo's movie title. Survey after survey have revealed that many Singaporeans either do not plan for retirement (financially or otherwise) or do not have enough savings to sustain their retired life.

Though they may not have planned for their retirement, many are fully aware that they will be in big trouble if their savings run out prematurely. Getting back into workforce at an advanced age is near impossible.

However for the better off and highly paid executives, I suspect there could be another reason why it can be difficult for them to retire. Giving up a fat salary is difficult. This is despite the fact that they can well survive on their passive income.

Let's take a hypothetical power couple:

Husband : $300k pa
Wife: $150k pa
Passive income : $150k pa

Yearly expense : $130k pa

Yes, they can survive on their passive income, but by retiring, they are in fact forgoing $450k pa. A very painful decision to make.

I believe many couples in their 50s are in this situation.