It’s revealed in a Straits Times survey that most Singaporeans don’t have a good retirement plan.
They are hesitant or too lazy to plan so far ahead. Only to end up using more money than they think they need.
Many of course hope to have enough to stop work and spend time doing what they enjoy, with their loved ones. But few are really taking serious steps to realizing that dream.
How much you need? - In order to retire without compromising your lifestyle, you would need about say, $3,500 monthly after you retire at around 65, all the way till your 80s. This means you would need to have around $850,000.
This is just a very basic calculation. Your savings will likely be lessened by HDB flat ($300,000), money spent on family, cars, or medical bills when you’re old. And with increasing inflation rate (around 3% yearly) and cost of living, your salary earned will keep dropping in value.
And you know the most alarming fact?
Many in their 50s realised they are still very short of retirement funds!
Saving money - It is a well-known myth that we can try to save more now, then live modestly when we stop work. Honestly ask yourselves, can you see yourselves giving up everything, scrimp and live like a poor person?
Who wants to save money till we have to change our lifestyle or until we can’t even enjoy life anymore? Or would you prefer to have all the money to spend on buying things you want, to travel and more importantly to have enough to spend on your loved ones?
Retire early? - Many of us don’t like being bossed around, and to keep working and working…all the way till we die. We also don’t like having to keep pushing aside our family life, life goals, or hobbies.
I didn’t want to spend my life this way.
The Singapore Daily
– Under The Angsana Tree: Retire in Singapore? The hard reality
– Spore Policy Journal: The Fading Role of WWII in Singapore’s National Narrative
– Alpha Male Syndrome: “can a Singaporean survive with less than $2,000 p.m. salary”