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Re: Guide for Singaporean retirees

Why you'll never be able to retire

By Simon Collins

5:00 AM Sunday Jun 26, 2016

It is 17 years since compulsory retirement ages were banned by the Human Rights Act. Illustration / Rod Emmerson

Retirement has become an outdated concept for 140,000 New Zealanders who have reached 65 and are still clocking in to work.

And those in the workforce face a future without the dream of long holidays and time on the golf course, with just one in five people working today expect to retire by 65.

It is 17 years since compulsory retirement ages were banned by the Human Rights Act. In that time, older workers have trebled from 9 per cent of men aged 65 and over to 27 per cent.

Women in paid work aged 65-plus have leapt five-fold from just 3 per cent to 17 per cent.

The "young old" aged 65 to 69 are now more likely to be still working in New Zealand (39.6 per cent of them) than in 30 out of 34 OECD countries, beaten only by Iceland, South Korea and Japan.

Almost a fifth (19.5 per cent) are still working in their early 70s, higher than in all but four countries.

"The word 'retirement' doesn't have any meaning for a lot of people any more," says Dr Susan St John, 71 and still director of Auckland University's Retirement Policy and Research Centre. "The old idea that you get your gold watch and put your slippers on, play golf and get up late is no longer realistic."

A combination of factors - financial necessity, better health and dramatic changes in the nature of work - make the era of retirement by 65 look like just a short-term blip in human history.

Dame Cath Tizard passed today's retirement age 20 years ago but has barely taken her foot off the gas.

The former Governor-General and Auckland Mayor is 85 and still has much on her plate to keep her busy, whether it's the many campaigns and commitments she has been involved with or giving public talks as she did as part of the Royal New Zealand Navy's 75th Anniversary celebrations this week.

Just two years ago she was overseeing the Glenn Inquiry into domestic violence. "If you've got any get-up-and-go, you can always find something to do - there are plenty of voluntary jobs out there."

Dame Cath admits she never had a game plan for retirement. "I'd never given it much thought because my last two jobs had finite terms. So what do you do next? You wait and see what comes up."

Last month Dame Cath was at Auckland University for the graduation of her grand-daughter Jacqui, 21. Like many young people, thoughts of financial security by the time she hits today's retirement age in 2060 are the furthest thing from her mind.
"I'm more focused today on just finding a job and figuring out what I want to do with my life."

The science graduate looks to her grandmother and hopes she also has passions that will keep her engaged post-retirement. "I don't really see a joyous retirement where you reach a certain age and stop working," she said.

"I'd like to be active, healthy and happy - even if it means I stay working when I'm older."

The world in 2060 is almost unimaginable for today's graduates. There are jobs to get, partners to meet, weddings, children and a world getting smaller by the day.

It looks increasingly certain that "retirement" will be a quaint notion they laugh about as they tell disbelieving children it was once what everyone did.

If you've got any get-up-and-go, you can always find something to do.Dame Cath Tizard

For thousands of years, people of all ages worked together in hunting, farming and domestic work as long as they were physically capable.

That legacy still lingers in our farming sector. Dr Michael Cameron of Waikato University says it is the only industry whose share of employment in every age group above 55 is above the national average, rising from 7 per cent across the whole workforce to 35 per cent of those still working at 85 or over.

Formal "retirement" arrived with the industrial revolution, as older workers could not keep up with machine-driven work and were pushed out.

The welfare state was created to support them, reaching a high-water mark in 1977 when Sir Robert Muldoon lowered the pension age to 60. But the tide turned only eight years later, when Labour imposed a surtax on pensioners' other income which lasted until 1998. The qualifying age was raised gradually back to 65 by 2001.

The average age of retirement, calculated by the OECD, dropped slowly for men from 70 in 1970 to 62 in 1997, and has risen again to 67. For women, it dropped from 69 to 60 and is now equal with men at 67.

On average, Kiwi men now work two years longer than in Australia, where the average retirement age is 65, and three years longer than the OECD average of 64.

Kiwi women work four years longer than women in Australia and across the OECD, which both average 63.

An online survey by the Retirement Commissioner suggests we will soon be working even longer. Only 21 per cent of those who have responded so far expect to retire by 65, 30 per cent at 66-69, 39 per cent at 70-75, and 10 per cent at older ages.

We are working longer for three reasons: because we need to financially, because we can, and because we want to. The Retirement Commissioner's survey asks: "What is the main reason that would influence or has influenced you to continue working past 65?" A majority (51 per cent) ticked the option: "Financially needed to continue working."

A Massey University study of people aged 61-77 in 2013 found 45 per cent of those still working agreed, and 43 per cent disagreed, with the statement, "I continue to work because I cannot afford to retire".

Those in that category were more likely to be renting, in economic hardship and Maori. Probably they were also more likely to be Aucklanders.

Most older people still own their own homes, but homeowners have shrunk slightly outside Auckland from 78.6 per cent of the 65-plus group in 2001 to 77.4 per cent in 2013, and more sharply in Auckland from 72 per cent to 67.3 per cent. Even heavier falls at younger ages mean growing numbers in future will still be renting in old age.

NZ Super pays $592 a week after tax for couples and $385 for a single person living alone. The mean rent in Auckland in April was $509 a week. "People continue working because the pension isn't enough to live on," says study leader Professor Fiona Alpass.

Secondly, as Professor Peggy Koopman-Boyden of Waikato University puts it: "They are working because they can. There is no longer anything legally that says you have to retire at 65."

And the vast majority are healthy enough to keep working.

NZ Health Surveys show that 88.5 per cent of people aged 65-74 now rate their health as "good" or better, virtually equal to the average for all adults (88.9 per cent).

Better health means we are living longer. A man reaching age 65 in 1952 could expect to live until 78; his grandson aged 65 today can expect to live to 84.

A woman reaching 65 in 1952 died at 80; today she will live to 86.

Alpass says the changing nature of work also makes it easier to keep working.

Most machine-driven industrial jobs have either been automated or moved offshore, and most jobs are now in services. They are also increasingly part-time and contract-based.

"There are fewer physically demanding jobs now, so people can work longer," she says. "It's now possible to have a kind of portfolio of jobs after 'retirement'."

Thirdly, people are staying in work longer because they want to. Forty per cent of people in the -Retirement Commissioner's survey say the main reason they will keep working past 65 is "value and satisfaction from work".

A Social Development Ministry survey of 65-year-olds in 2009, which let people choose multiple reasons they were still working, found the top four reasons were: "liked being busy" (92 per cent); "liked their work" (91 per cent); "felt they had something to contribute" (90 per cent); and "liked contact with other people" (83 per cent).

"Needed the income" came a distant fifth at 64 per cent.

Koopman-Boyden says she still researches ageing in her 70s because she enjoys offering her expertise. "It gives me a feeling of being useful and contributing to society."

It is hard to see a reversal of any of the factors driving people to work longer. "I think we are all going to work till the grave," says Alpass.

But she adds: "For some people, it hasn't [changed]. For people in low-skilled or highly demanding or not particularly fulfilling work, retirement is something they will look forward to, and for a lot of people it's a step up in income. They might have been made redundant in their 50s and not been able to get employed again, so getting National Super is a pay rise."

In other words, the income gaps that have widened in youth and middle age over the past 30 years may widen further as people in well-paid skilled jobs keep earning well into old age, and those who have struggled on lower incomes may have to survive largely on Super.

Increasingly, KiwiSaver will provide a little extra. But people would need to save more than $200,000 to yield a retirement income of $200 a week on top of Auckland rents (see box at right).

St John says this makes it crucial for New Zealand to keep its universal Super scheme.

On current settings, Super rates are 66 per cent of the net average wage for a couple, 60 per cent of the couple rate for singles living with others, and 65 per cent of the couple rate for singles living alone.

She favours shifting to standard rates for each individual, partnered or single, and reducing inequality by taxing superannuitants at 39 per cent on income above $15,000 a year.

"It's not like the old surcharge, which gave you very high and arbitrary effective marginal tax rates. It's a more sophisticated way of clawing back from the top 10 per cent or so," she says.

Older people should be able to do a mix of paid and unpaid "work".

"We have heard that 46 per cent of traditional jobs will disappear in the next decades [through technological change], yet we need important work to be done, whether it be in the environment, education or healthcare," she says.

"We have to make sure older people are supported well enough to do whatever they feel is their calling."

Out of the kitchen

After what once would have been a full working life as a chef, grandfather-of-four Tony Adolph is starting a new career as a kindergarten teacher.

Adolph, 62, has graduated with an early childhood education degree from the Manukau Institute of Technology. He has started work at the Pigeon Mountain Kindergarten at Bucklands Beach - and has no plans to stop at 65.

"I feel I've got a lot to give and I'd be pretty bored if I sat around doing nothing all day," he says.

Adolph joined the army at 21 and worked as an army chef for 20 years. "Since then I have worked as a chef on fishing boats and oil rigs, I ran my own business in Nelson, and then worked with adults with special needs," he says.

He moved to Auckland four and a half years ago to look after his parents, and stumbled on his new career by accident.

"By chance I did a bit of paving at one of the kindergartens," he says. "I enjoyed relating to the children and the head teacher suggested I should consider becoming a teacher."

He felt welcomed by the younger students in his class. "I had done lots of different things, so when it came to discussions about what it was like back in the day, I was a bit more knowledgeable," he says.

He got a student allowance for the first two years, despite changes in 2014 which removed the allowances above age 65 and reduced the lifetime limit for people aged 40-plus from 200 weeks to 120 weeks (three years).

He lost the allowance in the third year because his new partner, a teacher, was working. But he still qualified for a student loan, although loans have been restricted to cover only tuition fees for people aged 55-plus since 2011.

"The student loan just paid for my courses. To survive, I used all my savings," he says.

He had to stop studying twice, briefly, when his parents needed extra help, but his lecturers persuaded him to carry on.
"I really enjoy it," he says. "I feel it would be a waste of what I have got to give just to chuck it in at 65."

How much will it take?

Sorted's retirement planner lets you see how much you need to invest to achieve any goal for retirement income.

Suppose you're a 20-year-old male, expect to retire at the current average age of 67, and want a retirement income of $200 on top of the Auckland average rent of $509 a week until you die at age 87. Your target income is $709 a week.

If you expect to be living alone on NZ Super of $385 a week, the planner says you need to have an inflation-adjusted $268,451 in the bank by age 67, and to get there you need to start investing $86 a week now. If you're female you can expect to live to 90, so you need $298,827 by age 67, which requires investing $96 a week.

If you're a couple, aged 20 and want $200 each in retirement on top of the average Auckland rent (a target combined income of $909 a week), you need slightly less combined by age 67 ($292,210) than a female needs by herself, because you can expect a base income of $592 a week from NZ Super. You need to invest only $93 a week as a couple, or $46.50 each.
"Couples can accumulate a lot more than people on their own," says Sorted personal finance editor Tom Hartmann.

Obviously you need to invest more for the same target incomes if you're already closer to retirement. At age 40 you need to invest $173 a week as a single male, $192 as a single female or $188 as a couple. At age 55 you need to invest $417 a week as a single male, $464 as a single female or $454 as a couple.

• Source: www.sorted.org.nz/tools/retirement-planner

By Simon Collins
- Herald on Sunday


Re: Guide for Singaporean retirees

Wise move to Spain. A simple and beautiful story with no evil and jealous mudlander dogs there to mar it with lies and myths.

Retiring Early and Moving Abroad: How One Couple Made It Happen
Kate Holmes @the_kate_holmes

Courtesy of Bowman family
overseas retirement
Brad and Cynthia Bowman are living the good life in Spain. Here's what it took.

As a financial planner, I encourage people to discover what truly makes them happy. We then create a plan so they can pursue it—not just do only what they think they can afford or have time for. Brad and Cynthia Bowman, parents of two, did just that. One day, they realized that the traditional path of marriage, children, career, and retirement was not working for them. So they took drastic steps to create a whole new life they love.

The “R” Word

During their early days together, the Bowmans thought of retirement as “that distant thing that you do in your seventies,”says Cynthia. It felt to them like a way of ending their life. “We have got to come up with a better word for retirement; there is such a stigma to it,” she says.

Your aim in life should be a state of financial independence that you reach sooner rather than later. I myself have made a few bold changes in my life, and people often comment that I managed it because I’m unencumbered. But as a married couple who started a successful furniture store while raising two young girls, the Bowmans are living proof that anyone can veer off the traditional path and make courageous life changes to achieve this independence.

Read next: The New Rules of Early Retirement

When Doing Everything Right Feels Wrong

The couple had been running their Los Angeles furniture business for fifteen years, working every day and putting in 60 or 70 hours each week, struggling to find quality time with their daughters. Brad, in his 50s, and Cynthia, in her 40s, were burnt out. Cynthia asked herself, “If the business closed tomorrow, what would I have to show for all this effort?”

Brad, who had been a professional skateboarder and renowned hair and makeup artist, was scared at the thought of leaving the furniture business and taking another job. The Bowmans wanted a solution that did not involve going from one high-pressured career to another.

The book How to Retire Early and Live Well With Less Than a Million Dollars opened Cynthia’s eyes to an alternative way of living. “I used to think, ‘I might not even live to 70. What happens at that point? Am I going to have enough in retirement to live comfortably?'” she says.

The family had always enjoyed traveling, but they had mostly stolen a few days here and there added on to business trip. Cynthia’s dream was to retire and travel properly. Over the course of a year, the Bowmans developed this idea and finally pulled the trigger. They sold their business, rented out their house, pulled the kids out of school, and moved with the family dog to Spain!

As you can imagine, moving to another continent was no easy task. They had to focus on the positive to convince their young children that the move away from friends, schools, and the only world they ever knew was good. “We told them we were finally going to stop working and be Mom and Dad for them full-time,” says Cynthia. “And we were going to do it in a really cool place.”

Read next: The Secrets to Making a $1 Million Retirement Stash Last

The Big Problem with Advice

When the Bowmans shared their early retirement plans with their friends and family, they faced opposition from all sides. “No one understood what the heck we were talking about,” says Cynthia. “They meant well, but they would bring up so many concerns: What if you go broke? What if you have a terrible tenant and your house gets destroyed? Are the kids going to get bullied in school?”

Even their financial adviser was anxious about how long the Bowmans could afford to chase this dream. “He is very conservative, but we appreciate that most of the time,” says Cynthia. They didn’t follow his advice to stay the traditional course, but they still have him manage some of their finances.

The Dream Life in Reality

Now living in northern Spain, in San Sebastian, the Bowmans are taking life slow and easy. “Lots of walking, bike riding, cooking, and afternoon coffee or wine dates together,” is how Cynthia describes it. “We’re busy, but with things we love to do. Lots of social time with friends—meals here turn into six- to eight-hour affairs involving debate and lots of courses of food and wine.”

Abour half of their roughly $3,500-a-month living expenses are funded by rental income from their U.S. properties. They’re spending down what they cleared from selling their business, and Cynthia is bringing in money as a freelance writer. They have also been lucky: as the Euro has weakened, their dollars have more purchasing power.

Cynthia feels responsible for teaching her daughters, now 8 and 14, to take money seriously, so one day they themselves can do whatever they want. “They are picking up so much independence,” she says. “They take public transportation and buses to school and sometimes they run out of bus fare because they forgot to tell me. They then have to walk half an hour home. I would have never done that to them in the U.S. but here it is fine. They are going to be resilient and learn what money is about.”

Cynthia’s Advice for Achieving Your Dream Life

Save your money and invest it in income-producing assets that appreciate in value (like real estate or a business), rather than saving x% to reach some magic number decades from now. The Bowmans had built up a nest egg mostly comprising the property they purchased over the years. They now rent out their house, which was half paid off, a condominium, and a commercial warehouse they had used for stock. “Property is a big reason we are able to do this,” says Cynthia.

Make sure your expenses remain less than your income. Independence is not about how much you make or how much you have. Someone with passive income of $3,000 per month and monthly expenses of $2,500 has achieved financial independence that is not reliant upon a paycheck. Compare this with someone earning $9,000 each month, but taking on credit to spend $10,000 or more.

Focus on what you need. People are often happy with less, just as the Bowmans are today. They arrived in Spain with one suitcase apiece to start their new life. “I regret that it took a move for us to simplify our life,” Cynthia says. “The stress of managing a cluttered house was not worth it.”

Write down a script of the life you would like to lead and do not worry about what the answer is. Play with your imagination and explore the details of what it would look like—what you would do, where you would go and what your worldview would be.

Avoid debt at all costs and pay it down quickly. Doing what you wish when you wish requires that you don’t carry debt.

Take calculated risks. Ask many questions and seek advice.
“I want people to understand that I don’t believe you can get rich working your whole life,” Cynthia says. Follow your own path to find the personal wealth that will truly make you happy, just as the Bowmans are doing.



Re: Guide for Singaporean retirees

Research reveals harsh reality of retirement

3:19 PM Thursday Sep 8, 2016

Many retirees won't be spending their golden years on cruises.

More than half of over 50 year olds expect their standard of living to drop when they hit retirement, a survey has revealed.

Research undertaken by the Commission for Financial Capability as part of Money Week has uncovered the harsh reality of the so-called golden years.

While many people see retirement as a long awaited holiday to be spent cruising or taking European trips that's not the case for many New Zealanders.

Of the 1300 people surveyed 86 per cent said they felt worried about their financial security when they reach 65 and a quarter felt very concerned.

Watch: Money Week - Do you worry about money - do you have a plan?

The research included some people who had already retired and said their savings were running out faster than expected because the cost of living was higher than they had realised.

Earlier this week the commission released data showing Kiwis are severely underestimating how much they will need to buy groceries over 30 years in retirement.

More than 70 per cent of the people surveyed thought it would be less than $250k for a couple - a figure based on research by Massey University on the real cost of living in retirement.

The commission's over 50s found many said they had not saved enough for retirement and the only solution was to work longer.

We will put it to financial adviser Hannah McQueen as part of our live chat online on Friday at 12noon.

One in five Kiwis is already working beyond the age of 65 and that number is expected to grow.

Some people said they did not know how they would cope in retirement.

"I am renting. My rent costs me half my wages. It is a struggle to exist now, and I am working 30 hours a week in the school term. I will be even worse off with the pension.

"I will need to find a cheaper rental, which I have already tried to find. How will I afford to eat? Live? It is hard enough now, and I live alone," one person commented.

Another said: "We have modest superannuation... no mortgage and know that we will still have little to spare once we have dealt with rates, health, insurance, household and car insurance, food escalating power costs and basic household maintenance."

Many of those who identified with being vulnerable were renting or had large mortgages, other debts, no savings and frequently they or their partners had health issues.

Being single was also a challenge.

"I'm in my fifties. I have KiwiSaver. I can't afford to put a higher rate in my fund as I have a mortgage. It does concern me. I won't have anyone to rely on," one respondent said.

The need to support children, including adult offspring who were unemployed, had health issues or financial challenges was a commonly identified barrier to saving for retirement.

Retirement Commissioner Diane Maxwell said people were living for longer in retirement and that was putting more financial pressure on them.

"We've got to live on a fixed income for a lot longer than our grandparents did."

Maxwell said lots of people were making plans to manage their later years but she was concerned for those who weren't able to.

The commission is undertaking its three yearly review of retirement income policy this year and will report back to government on its findings by the end of the year.

"Our review will consider what can be done to support those people."
- NZ Herald

Copyright ©2016, NZME. Publishing Limited



Re: Guide for Singaporean retirees

As you can see based upon articles from around the world, retirement needs to be planned for well in advance.

No pension scheme is going to fund your retirement to the point where you can live out your dreams. You need to be financially independent well before the official retirement age.

Start planning TODAY before it is too late.

Thick Face Black Heart

Alfrescian (InfP)
Generous Asset
Re: Guide for Singaporean retirees

As you can see based upon articles from around the world, retirement needs to be planned for well in advance.

No pension scheme is going to fund your retirement to the point where you can live out your dreams. You need to be financially independent well before the official retirement age.

Start planning TODAY before it is too late.

These are all tautologies. Everyone knows that. What is lacking in most is the discipline to follow through.

Some basic financial sense, like when and how to invest, how to resist the temptation to overspend, and the need for financial insurance protection in the early working years, will also be essential.

Other than the above, it's a matter of mindset. That's tricky because some people need to be taught how to develop that mindset.


Re: Guide for Singaporean retirees

These are all tautologies. Everyone knows that. What is lacking in most is the discipline to follow through.

Some basic financial sense, like when and how to invest, how to resist the temptation to overspend, and the need for financial insurance protection in the early working years, will also be essential.

Other than the above, it's a matter of mindset. That's tricky because some people need to be taught how to develop that mindset.
If individuals are lacking in discipline and not adopting the correct mindset it is their own fault and not the fault of the PAP.

Ultimately everyone needs to accept responsibility for their own actions and inactions instead of trying to pass the buck.


Re: Guide for Singaporean retirees

its actually not difficult to save for retirement, if you ask me.
key is to resist temptation to buy stuff u dont need.
the LV bags, the prada wallet, the fanciful furnitures for your home... all no need one.

save money for retirement more important


Re: Guide for Singaporean retirees

My observations of the typical white collar Singaporean PME household are that they usually spend a lot on some really dubious stuff and then turn around to blame the government for so called high cost of living and perceived impossibility of retiring early.

1) Car - A lot of them claim it is necessary because the public transport sux. Fair enough, but in this case they should be buying the cheapest and most economical car. Instead I see many buying MPVs, SUVs, mid-end sedans like Altis, Civic, Lancer, Mazda 6, Sylphy etc. The common lame excuse seems to be "since I am already paying so much for a car might as well buy a good one". This easily jacks up monthly car expenditures by $500-1000 compared to just getting a no frills fuel economical 1200 cc hatchback.

2) F&B - Way too frequent cafe and restaurant dinning. Also a lot of wastage on $6 Starbucks and Laolao. Some blow big bucks on wine appreciation and fine dinning to flaunt their credentials in haute coture.

3) Kids - All sorts of questionable enrichment courses that cost a bomb. A few targeted tuition sessions is understandable, but spending more than a thousand dollars every month for creative workshop, music lesson, artistic jams and 'secret' method to brain training etc. is doing nothing but enriching landlords and consultants.

4) Holidays - Europe and America trips for the whole family easily cost $10 - $20k. They should be done only once in a blue moon, not as an annual pilgrimage for the kids to talk about in school and parents to show off on social media. These days there is also a trend to take random staycations in Singapore over the weekend, they don't come cheap and a whole family can easily blow away $300- $500 on hotel room and dinning.

5) House - Too many half-baked PMEs buying $1 million +/- mass market condos. Not only is loan servicing expensive, you pay through your nose every month on MCST maintenance, property tax and lose out on all sorts of government cash handouts and rebates.

6) Handphone and cable TV - Spend $1k on a stupid iphone / S7 when one can easily get a decent brand for $250. Inoptimal usage of data also results in them subscribing for higher end plans that are not really needed.

7) Branded shoes/bags/clothing - More for the ladies. Most cannot afford to purchase the full suite of luxury products, so they end up comical carrying a Channel handbag while the rest of their clothing and accessories are screaming cheap.

8) IT products - More for the gents. Buying the latest gadgets at exorbitant prices just because they don't want to wait a few months for the price to drop.

I am not saying all the above enjoyments are wrong. If one has the financial capacity, then feel free to go ahead. However it is disingenuous when an average couple making $80 - $150k combined income a year spends excessively and then turns back and blame the government for not controlling the cost of living or setting up a pension to allow them to retire and continue to do what they have been doing.


Re: Guide for Singaporean retirees

i saved up quite a bit for my retirements. stocks, insurance, cash, property.

but seeing a lot of old people around me.. sigh. i dunno they dumb or they lured by the "security" of CPF.
but having said that, i think quite a number of these pple will die before they can retire... totally no preparations for the future


Re: Guide for Singaporean retirees

As you can see based upon articles from around the world, retirement needs to be planned for well in advance.

No pension scheme is going to fund your retirement to the point where you can live out your dreams. You need to be financially independent well before the official retirement age.

Start planning TODAY before it is too late.
er you do realise youre talking to debt addict sinkies right?
What sort of income stream can it yield... eg for a 5 room apartment?
As I read from the HDB website, the Lease Buyback Scheme allow you to sell the tail-end lease of your 3-room or smaller flat or 4-room flat to HDB and receive up to $20,000 or $10,000 of LBS bonus respectively.

And also use the net proceeds to top up your CPF Retirement Accounts.


As I read from the HDB website, the Lease Buyback Scheme allow you to sell the tail-end lease of your 3-room or smaller flat or 4-room flat to HDB and receive up to $20,000 or $10,000 of LBS bonus respectively.

And also use the net proceeds to top up your CPF Retirement Accounts.
$20,000 can easily be spent in a month. It's insufficient to fund any sort of retirement plan.
$20,000 can easily be spent in a month. It's insufficient to fund any sort of retirement plan.
Quite true if an old man need $800 a month on basic living expenses.

$20,000 / $800 = 25 months (roughly 2 years)

Plus CPF Retirement Account will provided another estimated of $700 a month still ok for a living after age of 65.

The main challenges is how to survive if one is unemployed at the age of 50 to 65 :(


Alfrescian (Inf)
How do you work out the size of your nest egg?

Do the math based upon a 4% return after inflation and taxes. If you move to the right places or get a good accountant, taxes can be eliminated or reduced considerably.

For every $1,000,000 in productive assets, you should receive an income of $40.000 per annum so if you think you need $200,000 per year to support the lifestyle that you wish to enjoy, you need $5,000,000 in assets excluding the family home.

The family home does not count. It yields nothing. It is an overhead as long as you live in it.

If you want the lifestyle of the rich and famous, you'll probably need about $30 million or more. You then enter the realm of private yachts, chartered jets and fancy penthouses.

Less than $20 million and you're very comfortably well off but not really rich.

Remember that this thread is about achieving financial independence and not about becoming super wealthy. I emphasise this because I believe that just about anybody can achieve a target of $4 to 5 million. All it takes is willpower and perseverance. Becoming a billionaire is a different ball game altogether.
I totally agree with this, sinkies are obsessed with flaunting wealth and living in private properties, but living in one is a long-term overhead, money which could be put to better use investing in the market, getting returns rather than adding to the profits of banks. The best advice i can give to anyone who isn't born rich is hold on and live in a HDB apartment, that is the surest way to ensure you have the lowest accomodation expense. Invest in a private property as a buy-to-let is an excellent idea ONLY if you totally understand the ins and outs of being a landlord and do not mind the hassle at all.
Private condos are mainly for businessmen and people earning above $10,000 a month.

It is also not easy to invest on private condo and sublet out. The monthly mortgages can killed if there is no tenants for a period of time.
I have retired for 5 years and staying in Matlasia. My passive income comes from house rentals of my houses in Sg and dividends from shares and bonds. Usually I spend around RM2k a month and the rest I save up for my yearly vacation. ATM staying in Seremban and retired at 46 when the shit hit the fan in SMRT.