How much are you earning per annum?

Originally Posted by Unregistered

For those who are interested to know how much does a retired couple needs today, here is a true example of my retired parents who are in their 60s and 70s. They are living in their 3 bedroom paid up condo unit. They are retired for a few years.

Food and groceries $500 pm
Utilities $200 pm
Condo fees and property tax (pro rated) $500 pm
Mobile, wifi $300 pm
Medical $200 pm
Transport (they enjoy elderly concessions) $200 pm
Misc $200 pm
Total $2100 pm

I give them about $900 pm in monthly parental allowance. So they just need to spend $1200 pm from their own money. They are lucky to have a filial child. Nevertheless, even if I don’t give, they have the means to finance their retirement. They have income from CPF and annuities.

In 10 years time, with inflation at about 3% pa, a $1 item today will cost $1.35. So, if a retired couple needs $2100 pm today, in 10 years time it will be $2835.

So, if you are 55 today, in 10 years time when you are 65, you will receive $4000 pm as a couple ($2000 each) if you choose the CPF Life ERS, which is more than enough.

So, these are the facts. Don’t just listen to some people here. They have their own agendas and insecurities. Not true you need to have a lot of money to retire. As long as your home is paid up, you are debt free, you opt for the right CPF Life, you live a modest life and have some savings, you are going to be fine, even if you don’t have children or filial children.

If you retire in a HDB flat, your spending will be lesser since you may enjoy utilities rebates, GST vouchers, etc. So lucky.

mobile and wifi $300 per month for a household and 2 elderly? subscription for brazzers / naughty america included?

jokes aside, 1GBPS broadband costs roughly $39/mth and a data hp plan is only approx $30-50 per mth and $50 being the mid high end plan. Surely $120-150 is more than sufficient.

Originally Posted by Unregistered

I know where your problem lies.

You do not understand what the other forummer was trying to say when he showed the calculation for the amount needed in retirement.

Let me try and explain it this way.

Supposing you spend $2,000 a month in retirement.
Assuming no inflation at all, over 10 years, you would have spent $30,000.
Over 30 years, you would have spent $900,000

Now, this $900,000 would have to come from somewhere. It can be from your wages, that is, you work as long as you can, your cash savings, your investment or your CPF Life, and worse come to worse, sell off your home. Wherever the money come from, it still has to be there to support your expenses.

You mentioned CPF Life would give you and spouse $4,000 per month and you said this should be enough. This statement shows you do not understand what inflation is. Or what inflation can do to the value of your money.

At an inflation rate of 3% pa, the $4,000 today will only be worth $2,970 in 10 years!
In 20 years, that $4,000 today is only worth $2,210! In 30 years time, it is worth only $1,650.

What the other forummer has been saying was that inflation will erode your purchasing power over the years while the payout from your CPF Life remains fixed.

Now the above example of $2,500 per month expense is for a very basic lifestyle. Many people would need at least $5,000 per month. So you will have to multiply the above numbers by 2.

Hope this explanation helps.

Again, refrain from insults. Keep the discussion civil.

as the years go by, CPF minimum sum will increase for BRS FRS ERS, and the payouts will be adjusted accordingly as well in tandum with inflation.

minimum sum now is $166k (or thereabout), it could be $190k or $200k or $250k (depending how long you take to reach 55yo). and the annuity payout (CPF Life) by then would have more / less accounted for inflation.

that said, provided you are comfortable with the amount CPF life is paying to support your lifestyle. more cash is always better :P

Originally Posted by Unregistered

For those who are interested to know how much does a retired couple needs today, here is a true example of my retired parents who are in their 60s and 70s. They are living in their 3 bedroom paid up condo unit. They are retired for a few years.

Food and groceries $500 pm
Utilities $200 pm
Condo fees and property tax (pro rated) $500 pm
Mobile, wifi $300 pm
Medical $200 pm
Transport (they enjoy elderly concessions) $200 pm
Misc $200 pm
Total $2100 pm

I give them about $900 pm in monthly parental allowance. So they just need to spend $1200 pm from their own money. They are lucky to have a filial child. Nevertheless, even if I don’t give, they have the means to finance their retirement. They have income from CPF and annuities.

In 10 years time, with inflation at about 3% pa, a $1 item today will cost $1.35. So, if a retired couple needs $2100 pm today, in 10 years time it will be $2835.

So, if you are 55 today, in 10 years time when you are 65, you will receive $4000 pm as a couple ($2000 each) if you choose the CPF Life ERS, which is more than enough.

So, these are the facts. Don’t just listen to some people here. They have their own agendas and insecurities. Not true you need to have a lot of money to retire. As long as your home is paid up, you are debt free, you opt for the right CPF Life, you live a modest life and have some savings, you are going to be fine, even if you don’t have children or filial children.

If you retire in a HDB flat, your spending will be lesser since you may enjoy utilities rebates, GST vouchers, etc. So lucky.

need to factor in costs for a helper? most prob need when into the late years. that should be about 1k pm? considering lodging and food etc.

The moron said you need millions to retire. Crazy.
Like that 99% of people cannot retire. Stupid.

Originally Posted by Unregistered

The moron said you need millions to retire. Crazy.
Like that 99% of people cannot retire. Stupid.

Something not quite right here. The crazy moron has over $6M, while you are in self denial.

Hmm!?

Care to share your recommendation? So how much do you think you need? Give us a figure.

Originally Posted by Unregistered

The moron said you need millions to retire. Crazy.
Like that 99% of people cannot retire. Stupid.

Originally Posted by Unregistered

as the years go by, CPF minimum sum will increase for BRS FRS ERS, and the payouts will be adjusted accordingly as well in tandum with inflation.

minimum sum now is $166k (or thereabout), it could be $190k or $200k or $250k (depending how long you take to reach 55yo). and the annuity payout (CPF Life) by then would have more / less accounted for inflation.

that said, provided you are comfortable with the amount CPF life is paying to support your lifestyle. more cash is always better :P

The BRS, FRS and ERS are increasing for each new cohort of people reaching 55 yo. The purpose for the increase is to catch up with inflation.

Technically and mathematically, you can use any cohort to illustrate the effect of inflation. It is the same outcome.

Yes, later cohorts will have more in their BRS, FRS and ERS, but so will the cost of living.

Originally Posted by Unregistered

Care to share your recommendation? So how much do you think you need? Give us a figure.

I'm not the original poster. But as Long as can fulfill the following should suffice:
- food ($15 per day, so $450 per month)
- transport ($100 per month)
- hp + internet ($60 per month)
- insurance ($400 per month)
- overseas holidays ($2000 per year so $167 per month)
- utilities bill ($90 per month)
- movies ($25 per month)

So, $1300 per month will be enough. $15600 per annum.

This is realistic. Don't listen to the crazy moron who said you need MILLIONS to retire. Fool.

Originally Posted by Unregistered

I'm not the original poster. But as Long as can fulfill the following should suffice:
- food ($15 per day, so $450 per month)
- transport ($100 per month)
- hp + internet ($60 per month)
- insurance ($400 per month)
- overseas holidays ($2000 per year so $167 per month)
- utilities bill ($90 per month)
- movies ($25 per month)

So, $1300 per month will be enough. $15600 per annum.

Originally Posted by Unregistered

I'm not the original poster. But as Long as can fulfill the following should suffice:
- food ($15 per day, so $450 per month)
- transport ($100 per month)
- hp + internet ($60 per month)
- insurance ($400 per month)
- overseas holidays ($2000 per year so $167 per month)
- utilities bill ($90 per month)
- movies ($25 per month)

So, $1300 per month will be enough. $15600 per annum.

Let me throw in a few other items (on a monthly and lumpy basis) ie
Insurance premiums?
CNY angpows (and in a similar basket -presents, CNY festival expenses etc)
Household white goods wear& tear aka depreciation/replacement cost?
Medical consultations for simple/chronic illness?

If you honestly look at these 4 items, they could add in between 8-10k of yearly expenses.

You are likely to need about $24k pa cash flow (in today's dollars) for retirement...