How much are you earning per annum?

In Singapore, it is not difficult to retire at 65. Here are steps to take:

Assuming a working couple aged 55 this year. Retire at 65, in ten years time.

1. Make sure you both have your CPF minimum sum of $155k in your CPF SA. You will each get $1,200 pm at 65 for the rest of your life. So you get in total $2,400 pm.

2. Make sure you have paid off your HDB flat mortgage by 65. If you have a 4 room flat, you can rent out two of your spare rooms (your children should be married and move out by then) for $1,000 each room. So you get $2,000 pm.

3. Make sure your children give you and spouse a monthly allowance. Each child should give at least $500 for you and $500 for your spouse. So if you have two children, you get $2,000 pm in total.

So, you and your spouse will get a grand total of $6400 pm. This is more than enough as you are expected to spend $3000 pm or $4000 pm, including holidays (no car and no maid).

Just make sure you do not indulge in sinful activities like gambling, drinking, partying, womanizing, etc.

You should be able to retire comfortably in your flat.

The 'sin-ful' poster is back again. Its also a sin to be so naggy.

40/41. Bought a condo for $900k. Loan $700k.
Own car, paid up. Holidays twice a year. No maid.
Sole bread winner, $130k pa. Wife housewife.
One child, 2 years old. Combined net worth $600k.

Originally Posted by Unregistered

40/41. Bought a condo for $900k. Loan $700k.
Own car, paid up. Holidays twice a year. No maid.
Sole bread winner, $130k pa. Wife housewife.
One child, 2 years old. Combined net worth $600k.

Do you find you have sufficient savings?

Originally Posted by Unregistered

Do you find you have sufficient savings?

Sure. We have cash savings of $100k. I save $30k pa. We are fully insured. I'm also comfortable with my mortgage payments. Why do you ask? Is our net worth too little? I think our net worth is higher than the average Singaporean.

38 yo, middle office in a bank

Basic $240K per annum

Originally Posted by 523

38 yo, middle office in a bank

Basic $240K per annum

You earn so much. Are you changing to a brand new car soon?

Went to visit a couple of showroom to window shop to replace my car in 2 years time... Surprisingly crowded and seeing many people signing on the dot despite COE hitting $75k for CatB. Will COE ever come down??

Originally Posted by Unregistered

40/41. Bought a condo for $900k. Loan $700k.
Own car, paid up. Holidays twice a year. No maid.
Sole bread winner, $130k pa. Wife housewife.
One child, 2 years old. Combined net worth $600k.

This will not come across as nice, I must admit.

130k pa HH income is probably on the 60th percentile mark.you can check out the ranking toolin this salary.sg site.

It is unwise for a 60th percentile family to stay in a condo UNLESS Your wife is just temporarily a housewife and she plans to work again soon...

Originally Posted by Unregistered

This will not come across as nice, I must admit.

130k pa HH income is probably on the 60th percentile mark.you can check out the ranking toolin this salary.sg site.

It is unwise for a 60th percentile family to stay in a condo UNLESS Your wife is just temporarily a housewife and she plans to work again soon...

Why not? I have friends whose HH income (both husband and wife working) is less than mine (one person working) and they qualify for EC. Their EC cost and loan are similar to mine. Why can they and why I could not? My job is very stable and I should be able to finance my mortgage without any problem. As long as I'm working, we can stay in the condo. If anything happens to me and I can't work, we will then downgrade to a hdb flat and my wife will have to go back to work.

By the time I reach 65 and retire, I would have paid off the condo. We can then sell the condo and move to a studio unit. I will have cash to invest and CPF Life.