how much passive income one should have to safely retired

[Guest Inca]

hi just wondering if one have passive income of $2500 to 3000 a month, is it safe to retire already?

with assumption he is single without need to support anyone, with monthly expense around $1000-1500

 

is there anything else he needs to consider other than his living cost, travel and insurance

[Hello.Massage]

Hi Guest Inca,

 

this is a very broad question that needs more questions asked.

 

1. When do you plan to retire?
2. your passive income of $2,500-$3,000 is present value?

3. what have you factor in for your monthly expenses?

 And more haha

[Guest Fatty]

Do you intend to pay for company? 

[Firday]

i share mind experience :

Due to family member cancer - force to be care giver but to quit my job

Immediately i shift in to my parent place and rental my unit of passive income of $3.5k/mth

Seriously i was fall to cut down to fugal lifestyle whereby bus or mrt only, food at hawker centre those $3 meal with water from home. 

Cancel all social gathering that inccur bills

Mostly i think i manage to survice without job through passive income rental but mut lead a fugal lifestyle. As for now,inflation ride in - you may need more creative on fugal lifestyle :

cut down on food meal diet

reduce mobile plan 

increase more water by less coffee or bubble tea

walk more 

 

talk is easy but action is more tough - i have no choice due to financial issue for medical expenses, and other commitment especially on mortage loan.

 

in the end after my demise of family member - i sold away my golden goose who lay golden egg due to "mininalist " for a good causes. Now i m more easy to accept my fugal lifestyle 

less fuss

less complex

less expense

less commitment

lighter

brief like a wind

 

 

ps : passive income is not for living a comfortable lifestyle 

is for those sale talks that mislead you into investment trick only!

 

 

 

 

 

 

 

 

[Guest Inca]

On 5/27/2023 at 12:46 PM, Hello.Massage said:

Hi Guest Inca,

 

this is a very broad question that needs more questions asked.

 

1. When do you plan to retire?
2. your passive income of $2,500-$3,000 is present value?

3. what have you factor in for your monthly expenses?

 And more haha

 

1. now lol. in his 40s

2. yes present value

3. house paid up, so no issue, The 1k-1.5k monthly expense is for meal, hobby, entertainment, occasional travelling, insurance, tax, replace house appliances or mobile phone once a while.

 

so just wondering if missing out on something big to consider,

 

actually can always go back to work if sick of doing nothing, sometimes just feel so tiring constantly working since graduated :s

[Guest inca]

On 5/28/2023 at 10:24 AM, Firday said:

i share mind experience :

Due to family member cancer - force to be care giver but to quit my job

Immediately i shift in to my parent place and rental my unit of passive income of $3.5k/mth

Seriously i was fall to cut down to fugal lifestyle whereby bus or mrt only, food at hawker centre those $3 meal with water from home. 

Cancel all social gathering that inccur bills

Mostly i think i manage to survice without job through passive income rental but mut lead a fugal lifestyle. As for now,inflation ride in - you may need more creative on fugal lifestyle :

cut down on food meal diet

reduce mobile plan 

increase more water by less coffee or bubble tea

walk more 

 

talk is easy but action is more tough - i have no choice due to financial issue for medical expenses, and other commitment especially on mortage loan.

 

in the end after my demise of family member - i sold away my golden goose who lay golden egg due to "mininalist " for a good causes. Now i m more easy to accept my fugal lifestyle 

less fuss

less complex

less expense

less commitment

lighter

brief like a wind

 

 

ps : passive income is not for living a comfortable lifestyle 

is for those sale talks that mislead you into investment trick only!

 

 

 

 

 

 

 

 

 

so what have been changed since then? full fledge retired now?

Hows ur daily life day by day looks like? im wondering about transition from 8-10hours at works to additional 8-10hrs free time

[Firstinsight2000]

How much passive income needed to safely retire?  Simple, enough passive income to sustain your current lifestyle with additional passive income that you can invest to generate more passive income.

 

In that case, are you really retired or have you become a professional investor?

 

The key in not to retire but be lucky enough to work on something that one enjoys.  

[robin]

Have you set aside the budget for your hospitalization insurance? And with maximum coverage of up to 95%, in the event you need to be hospitalized, how did you plan to foot the min 5% bill? 
 

How about critical illness which incurs outpatient expenses?

[Firday]

7 hours ago, robin said:

Have you set aside the budget for your hospitalization insurance? And with maximum coverage of up to 95%, in the event you need to be hospitalized, how did you plan to foot the min 5% bill? 
 

How about critical illness which incurs outpatient expenses?

can you elaborate more in detail ? 

 

as for me - hospitalisation bill is beyond our control due to unforseem illness - there no way you can cover enough from insurance if strike with critical illness either u paid or die asap.

 

i share a life stories of this wise and rich women who well covered by her insurance and company benefits - she kenna stroke while holiday in overseas - the tedious of transfer back to sg already cost  bomb but cover by her insurance.

Then took her 8 month from coma to nursing home with tip top medical faciliites until she die of prenumoina in nursing home. Yes she been wellcovered by her insurance but suffering for her last 8 month helplessy

 

[Firday]

15 hours ago, Guest inca said:

 

so what have been changed since then? full fledge retired now?

a great big change when covid strike in - 

retirement on saving, gov payout, gst and etc - well blessing in disguise,

 

15 hours ago, Guest inca said:

Hows ur daily life day by day looks like?

awake at 4am to do morning walk

more busy then full time job due to find activities to fill up my free time.

 

im wondering about transition from 8-10hours at works to additional 8-10hrs free time

time is a wonderful series of event to fill u up 

i though i got more time for friends but reality is not true at all - they dun want to spend time with me which i think otherwise, so i make more new friends instead

 

i guess you wont be timing yourself instead - when tired u sleep, when hungry you eat and bore u find thing to keep you from boring,

 

in fact i start to prefer to stay at home to tiring to entertain others

 

 

[Firstinsight2000]

“hospitalisation bill is beyond our control due to unforseem illness”. True.

 

“there no way you can cover enough from insurance if strike with critical illness either u paid or die asap.”  Not True.  Certain insurance used to cover up to 100% of hospitalisation.  It would also cover critical illnesses such as cancer.

 

However, insurance does not cover long term care for chronic illnesses.  Nevertheless, the polyclinics offer both care and medications at very affordable prices.

 

[radiusulnar]

retirement is frightening because even when working, i often wonder what happens if i lose my job. to have no job, i wonder how to survive.

[Ironrod]

I think even if "retire" i would like to job that work 4 hrs a day at least so something else we will "waste" our life away for nothing.

[Guest DKon]

On 5/30/2023 at 2:56 PM, radiusulnar said:

retirement is frightening because even when working, i often wonder what happens if i lose my job. to have no job, i wonder how to survive.

if you cant survive without job then you shouldn't think about retirement now

 

Just work harder, saving as much as you can so you can buy asset (property) or other investment that can give u passive income

[radiusulnar]

For average folk it is quite hard to buy investment asset. What I plan to fall back on is CPF and maybe part time jobs during retirement

[Guest Scary]

Singapore do not have easy retirement policy.  They will make life difficult so that if you want to live, you need to keep working. If u have a million in your bank account, you still need to be frugal to play safe.  

[mate69]

You can never fully retire if you want to live in SG

[radiusulnar]

maybe have to retire in MY, TH or ID

[mate69]

1 hour ago, radiusulnar said:

maybe have to retire in MY, TH or ID

 

But do note that you also have to take issues like security, language, food etc into account when deciding where to retire

[Guest Beyond the Shore]

5 hours ago, mate69 said:

 

But do note that you also have to take issues like security, language, food etc into account when deciding where to retire

If you plan to retire in other country, better start learning their language now, using your skillfuture credit.  Asian foods are easily acceptable to many Asian people whether you are here or ther.  As for security, as long as you don't try to flaunt, wear branded stuff,  arrogant and learn to keep yourself low profile and behave humbly like their native you shouldn't worry about security issues.   The only challenge is to look for housing, if you are not the citizen there. Try to understand the laws and rules in other country.  Do research.   Once you are fully settled, probably can do a small business catering to tourish since their shop rental there is cheap.

[Guest guest]

6 hours ago, radiusulnar said:

maybe have to retire in MY, TH or ID

 

its a good idea actually, we are lucky to hold strong currency, and passport :)

 

of course nothing is perfect, travel more to these cities you aim for retirement, stay more days to feel if it suitable for longterm.

[Guest guest]

19 hours ago, radiusulnar said:

For average folk it is quite hard to buy investment asset. What I plan to fall back on is CPF and maybe part time jobs during retirement

Im abit scare abt this CPF thing, the money is literally not in our hand, never sure about revised policy in the future, even tho personally i trust the gahmn but still money is not in my own hand haha 

[radiusulnar]

i am low ses so have nothing to fluant. the locals there probably more atas than me.

[lonelyglobe]

17 hours ago, Guest Scary said:

Singapore do not have easy retirement policy.  They will make life difficult so that if you want to live, you need to keep working. If u have a million in your bank account, you still need to be frugal to play safe.  

Yes,  if they can make u work till 80 or 90, that is even better as we are always short of manpower. 

 

Sometime back there is this news that a old man staying in a rented house pass away and they found out he had 1 million in his bank. So while preparing for the future also must enjoy life occasionally, if u don't enjoy,  others will enjoy for u. 

[Guest Bobby]

8 hours ago, Guest Beyond the Shore said:

If you plan to retire in other country, better start learning their language now, using your skillfuture credit.  Asian foods are easily acceptable to many Asian people whether you are here or ther.  As for security, as long as you don't try to flaunt, wear branded stuff,  arrogant and learn to keep yourself low profile and behave humbly like their native you shouldn't worry about security issues.   The only challenge is to look for housing, if you are not the citizen there. Try to understand the laws and rules in other country.  Do research.   Once you are fully settled, probably can do a small business catering to tourish since their shop rental there is cheap.

 

Singaporeans often count their sums in how and where they should retire.

One things which many potential retirees do not think about, is how much the people of these countries dislike Singaporeans - the behaviors, the values, the etiquette (or lack of) when in other countries.

Singaporeans should just stay on their own island and not go around being hiam-ed by others.

[mate69]

5 hours ago, lonelyglobe said:

Yes,  if they can make u work till 80 or 90, that is even better as we are always short of manpower. 

 

Sometime back there is this news that a old man staying in a rented house pass away and they found out he had 1 million in his bank. So while preparing for the future also must enjoy life occasionally, if u don't enjoy,  others will enjoy for u. 

 

this is very true...dont just stash and stash and stash

also know that u have limited time on earth....so need to enjoy fr time to time

[mate69]

The phrase “appearances can be deceptive” doesn’t come close to capturing the case of a Singaporean man in his 80s who lived what seemed to be a hand-to-mouth existence in a one-room rental flat, when in fact he has $1 million in his bank account and other financial products.

He dressed simply and lived mostly on food bought from nearby markets and hawker centres – not unlike other retirees in the neighbourhood.

Few would have guessed that he was actually cash-rich and with a well-devised retirement plan.

Apart from a whopping savings account, he receives a decent amount of deposits every month from retirement money in his Central Provident Fund as well as four private annuities.

Private annuities do not come cheap; each one can cost a few hundred thousand dollars to set up, if not more. So the bank and CPF savings suggest this man has access to $1 million or more in cash if he surrenders his policies. While it is not known why he chose to rent a small Housing Board flat, he was certainly meticulous with his expenses: he never fell behind on rent even as his health deteriorated.

[radiusulnar]

so depressing to read about this. hope he was not one of those people found because of bad smell emanating from the unit

[mate69]

5 minutes ago, radiusulnar said:

so depressing to read about this. hope he was not one of those people found because of bad smell emanating from the unit

 

Yeah we have too many of such sad cases

Nobody should ever have to go like this

[Guest guest]

On 6/3/2023 at 12:26 AM, mate69 said:

 

Yeah we have too many of such sad cases

Nobody should ever have to go like this

 

so we should not buy or stay at those 1 bedroom flat, at least aim for 2 bedrooms, its good to have passive income, and also some sort of companionship, or if anything happened someone will alert

[Guest Papaya]

On 6/2/2023 at 8:52 AM, Guest guest said:

Im abit scare abt this CPF thing, the money is literally not in our hand, never sure about revised policy in the future, even tho personally i trust the gahmn but still money is not in my own hand haha 

Once you reach 65 yrs old , u would cry to tear how cpf have help you , trust me.

[Guest guest]

On 6/4/2023 at 4:10 PM, Guest Papaya said:

Once you reach 65 yrs old , u would cry to tear how cpf have help you , trust me.

 

its good if saving in cpf can start helping after 65yo, but i will not rely on cpf alone aka rely of someone else.

its better to use my cpf money to help me get that subsidised flat n it will give me passive income, rely on ownself first, additional pension money from cpf is good but i prefer make my own money as the first source of income. 

[Guest Papaya]

10 hours ago, Guest guest said:

 

its good if saving in cpf can start helping after 65yo, but i will not rely on cpf alone aka rely of someone else.

its better to use my cpf money to help me get that subsidised flat n it will give me passive income, rely on ownself first, additional pension money from cpf is good but i prefer make my own money as the first source of income. 

Cpf allow you to use $ to buy house, so pls understand the intention of cpf 

[Guest Deep throated]

4 hours ago, Guest Papaya said:

Cpf allow you to use $ to buy house, so pls understand the intention of cpf 

CPF allows you to use $ to buy house is a good move.  Flip the coin around,  the house you buy is extremely expensive and that is bad nove.  You are fucked both way. 

[Guest Papaya]

On 6/7/2023 at 12:00 PM, Guest Deep throated said:

CPF allows you to use $ to buy house is a good move.  Flip the coin around,  the house you buy is extremely expensive and that is bad nove.  You are fucked both way. 

When u talk to rich dad : buying house is a good  move for investment, when u talk to poor dad : why buying house, so expensive , might as well use the money enjoy life. See ? Poor people have diff mindset, and they will forever  stay poor. 

[earth_tone]

As of today, Jun 2023, maybe $2500SGD/month to fully retire.

That's about $30,000 annually

 

$1200/month Insurance

$120/month transportation

$200/month medications

$300/month meals

$150/month PUB 

$20/month mobile subscription

$500/month for emergency

 

 

[radiusulnar]

There is an article today about CPF Life for retirement income for modest lifestyle. I found it quite useful even though the example is based on enhanced retirement sum. Not easy to reach!

[Guest guest]

On 6/9/2023 at 6:27 PM, earth_tone said:

As of today, Jun 2023, maybe $2500SGD/month to fully retire.

That's about $30,000 annually

 

$1200/month Insurance

$120/month transportation

$200/month medications

$300/month meals

$150/month PUB 

$20/month mobile subscription

$500/month for emergency

 

 

 

$1200/month for insurance, what kind of insurance is this? its a huge amount.

 

if this list is for monthly living cost you missing out some little small things like broadband, gym, property tax, entertainment netflix haircut toiletries, etc

unless all these lump into your emergency fund hehe

[Guest guestt]

6 hours ago, radiusulnar said:

There is an article today about CPF Life for retirement income for modest lifestyle. I found it quite useful even though the example is based on enhanced retirement sum. Not easy to reach!

can share the link? thanks

[Guest Link?]

7 hours ago, radiusulnar said:

There is an article today about CPF Life for retirement income for modest lifestyle. I found it quite useful even though the example is based on enhanced retirement sum. Not easy to reach!

how about sharing the link? 

[radiusulnar]

It's in Straits Times

https://www.straitstimes.com/business/invest/why-cpf-life-can-be-better-than-an-investment-property

[auscent]

Income isnt the main issue. For most Sporeans willing to live frugally, thete should be enough.

 

Planning how to spend the years meaningfully is, as most of us here invested a fair bit into work to build our identity. Retirement means we need to establish new identity.

[quanjishou]

On 6/11/2023 at 12:54 AM, radiusulnar said:

It's in Straits Times

https://www.straitstimes.com/business/invest/why-cpf-life-can-be-better-than-an-investment-property

no subscription cannot read full article just one para nia

[sphere]

1 hour ago, quanjishou said:

no subscription cannot read full article just one para nia

 

Here you go:

Why CPF Life can be better than an investment property

It is impossible to buy an apartment for $600,000 that can guarantee you a monthly income of about $5,000 in today’s red-hot property market, but the Central Provident Fund’s (CPF) annuity scheme can give a couple such returns.
 

If a couple want to enjoy such a bumper monthly income for life with that same amount of savings, they can start planning with the aim of joining CPF Life at the highest tier when they reach the age of 55.
 

Many people do not realise that the national annuity scheme, which provides a good lifelong income for retirees, can yield far better dollar-for-dollar returns than a rental property.
 

Just like Singapore Savings Bonds or Treasury Bills, there is nothing to dislike about CPF Life because it works just like any annuity scheme in the market, except that it is much cheaper to take up and provides a stable monthly income for life because it is backed by the Government.
 

Yet, many people choose not to make better use of it, preferring instead to put their money into a second property, for instance, thinking it can provide a higher retirement income.
 

Those who do so often risk having their plans go awry when unfavourable economic conditions affect their plans, such as when the rental income is eroded due to higher mortgage rates.
 

Here are three reasons why CPF Life can provide better benefits to a retired couple, than having another property for rental income.

Affordability

Not everyone can be a landlord because it is expensive to invest in a second property. Even if you can buy one, you must be prepared to pay over $1 million for a better unit if you want to earn a higher rent.
 

You don’t need such high outlays for CPF Life because you can join the scheme based on what you can afford.
 

For instance, those hitting 55 who join with the Full Retirement Sum (FRS) of $198,800 in 2023 will stand to get about $1,600 a month from the age of 65, while those putting up the Enhanced Retirement Sum (ERS) of $298,200 will get about $2,400.
 

So a couple who put up about $400,000 can stand to get a combined lifelong retirement income of $3,200 a month, while those signing up with about $600,000 can get around $4,800 in total.
 

If they live up to 90, they would have received $960,000 (FRS) and $1.44 million (ERS) in total payouts.

Tax- and hassle-free

Landlords don’t just pocket the rent; there are various costs to meet before they can earn real income. These include income and property taxes, mortgage payments, estate maintenance charges, costs for repairs, and replacement of household items, plus fees for finding tenants.
 

If you have the misfortune of ending up with tenants from hell, you may even have to spend hefty legal fees to resolve such nightmares.
 

Retired couples who have decent CPF Life payments don’t have such risks because there are no fees to pay and the payouts are tax-free. Indeed, those who don’t have high monthly expenses can even save a portion of these payouts for their annual holidays, without touching their savings.

Stable income

Rental income is dependent on the state of your property as well as market conditions. If times are bad, there is a risk that you may not have a rental income. While you can sell your property, the proceeds will not last forever unless you know how to invest prudently.
 

CPF Life payouts are stable and not as volatile as other private financial products. Indeed, you can even choose to increase your monthly payouts by making annual top-ups of up to $10,000 to the scheme.
 

Of course, it is all well and good if you can invest in extra properties for your retirement, but you should not miss out on the best deal in town that can provide a decent lifelong income for only a fraction of the price of a property.
 

The reality is that many property owners do encounter cashflow problems in their old age, so CPF payouts can help meet some of their bills. This has prompted some retirees to sell their properties so they can use part of the proceeds to join CPF Life, as long as they are under 80.
 

While their payouts won’t be as good as those who joined at 55, it is still better late than never to enjoy fuss-free cash payouts for life.
 

Finally, couples in their prime looking to plan for a good retirement should first do the sums for CPF Life before embarking on buying a second property. Don’t miss out the chance to secure a sound asset that will continuously give you payouts through your golden years.

 

 

[earth_tone]

On 6/10/2023 at 10:19 PM, Guest guest said:

 

$1200/month for insurance, what kind of insurance is this? its a huge amount.

 

if this list is for monthly living cost you missing out some little small things like broadband, gym, property tax, entertainment netflix haircut toiletries, etc

unless all these lump into your emergency fund hehe

First of all, I am just calculating based on my own opinion, it may not fit into everyone else's lifestyle. If you are well-to-do, I think money would not be an issue right, spend on anything as you like. This breakdown is for those who's considering to retire for whatever reason in 2023, and stop working, and not sure how much passive income one should have. So, hope my answers help you, let's see....

 

$1200/ month for insurance: It is not really that much if that is a priority. If the concern is not there, can always lower the amount and need even lesser to retire.

 

And as you described, those are small things  Let me provide some options below:

 

broadband : if you signed up a decent sim only plan, you do not need broadband at home, go to libraries for free wifi when necessary 

gym : use the park

property tax : park this under either insurance or PUB cost, can definitely cover within these funds

Netflix and entertainment : not a necessity but if ever the need arises, use emergency fund, that way you need your limits

Haircut : you seriously cannot hold a job anymore and you've long for an early retirement as of today (2023, 13 June) you need to make adjustment to lifestyle, go onto Shopee, buy a shaver and DIY. 

Toiletries : these can actually become luxury items, just get a soap ($1) to replace all your La Roche Posay, L'occitane or Innisfree

etc : obviously, the demographics here are people of age, meaning you would've already been living in the society for awhile, you have some basic needs covered so continue to make use of whatever you already have. Just downgrade your living habits from there

Emergency fund : Yes, you are correct, everything else that is not basic is parked under this fund. So, be frugal. 

 

Anything else? 

[Singroc]

6 hours ago, sphere said:

 

Here you go:

Why CPF Life can be better than an investment property

It is impossible to buy an apartment for $600,000 that can guarantee you a monthly income of about $5,000 in today’s red-hot property market, but the Central Provident Fund’s (CPF) annuity scheme can give a couple such returns.
 

If a couple want to enjoy such a bumper monthly income for life with that same amount of savings, they can start planning with the aim of joining CPF Life at the highest tier when they reach the age of 55.
 

Many people do not realise that the national annuity scheme, which provides a good lifelong income for retirees, can yield far better dollar-for-dollar returns than a rental property.
 

Just like Singapore Savings Bonds or Treasury Bills, there is nothing to dislike about CPF Life because it works just like any annuity scheme in the market, except that it is much cheaper to take up and provides a stable monthly income for life because it is backed by the Government.
 

Yet, many people choose not to make better use of it, preferring instead to put their money into a second property, for instance, thinking it can provide a higher retirement income.
 

Those who do so often risk having their plans go awry when unfavourable economic conditions affect their plans, such as when the rental income is eroded due to higher mortgage rates.
 

Here are three reasons why CPF Life can provide better benefits to a retired couple, than having another property for rental income.

Affordability

Not everyone can be a landlord because it is expensive to invest in a second property. Even if you can buy one, you must be prepared to pay over $1 million for a better unit if you want to earn a higher rent.
 

You don’t need such high outlays for CPF Life because you can join the scheme based on what you can afford.
 

For instance, those hitting 55 who join with the Full Retirement Sum (FRS) of $198,800 in 2023 will stand to get about $1,600 a month from the age of 65, while those putting up the Enhanced Retirement Sum (ERS) of $298,200 will get about $2,400.
 

So a couple who put up about $400,000 can stand to get a combined lifelong retirement income of $3,200 a month, while those signing up with about $600,000 can get around $4,800 in total.
 

If they live up to 90, they would have received $960,000 (FRS) and $1.44 million (ERS) in total payouts.

Tax- and hassle-free

Landlords don’t just pocket the rent; there are various costs to meet before they can earn real income. These include income and property taxes, mortgage payments, estate maintenance charges, costs for repairs, and replacement of household items, plus fees for finding tenants.
 

If you have the misfortune of ending up with tenants from hell, you may even have to spend hefty legal fees to resolve such nightmares.
 

Retired couples who have decent CPF Life payments don’t have such risks because there are no fees to pay and the payouts are tax-free. Indeed, those who don’t have high monthly expenses can even save a portion of these payouts for their annual holidays, without touching their savings.

Stable income

Rental income is dependent on the state of your property as well as market conditions. If times are bad, there is a risk that you may not have a rental income. While you can sell your property, the proceeds will not last forever unless you know how to invest prudently.
 

CPF Life payouts are stable and not as volatile as other private financial products. Indeed, you can even choose to increase your monthly payouts by making annual top-ups of up to $10,000 to the scheme.
 

Of course, it is all well and good if you can invest in extra properties for your retirement, but you should not miss out on the best deal in town that can provide a decent lifelong income for only a fraction of the price of a property.
 

The reality is that many property owners do encounter cashflow problems in their old age, so CPF payouts can help meet some of their bills. This has prompted some retirees to sell their properties so they can use part of the proceeds to join CPF Life, as long as they are under 80.
 

While their payouts won’t be as good as those who joined at 55, it is still better late than never to enjoy fuss-free cash payouts for life.
 

Finally, couples in their prime looking to plan for a good retirement should first do the sums for CPF Life before embarking on buying a second property. Don’t miss out the chance to secure a sound asset that will continuously give you payouts through your golden years.

 

 

When one is trying to sell something, he will only highlight the positives but ignoring the negatives.  Compared to property investment, CPF Life might be less favorable because:

 

1) you can only get payouts when u reach 65. Meaning you cannot retire early.

 

2) there is a maximum u can contribute. Which I think is 3 times the basic retirement sum or around $600k for a couple. That translates to around monthly payout of $4800 for a couple or $2400 individually. Will that be enough for an elderly after he/she retires.

 

3) the CPF payout already factored in interest component, there is no increase in principal sum. For property there is always the capital appreciation on top of rental income you can get.

 

My point is, always look at the pros and cons of all retirement avenues and assess one’s financial capabilities. If one is capable of getting an investment property, it might be a better option than CPF life.

[Guest guest]

On 6/12/2023 at 10:50 PM, auscent said:

Income isnt the main issue. For most Sporeans willing to live frugally, thete should be enough.

 

Planning how to spend the years meaningfully is, as most of us here invested a fair bit into work to build our identity. Retirement means we need to establish new identity.

 

Yeah after working life for 30-40years, suddenly we have free time retirement life for another 20+yrs, it will be easier for those with partner or have many friends.

 

[quanjishou]

 

[kidster]

On 6/13/2023 at 12:53 PM, earth_tone said:

broadband : if you signed up a decent sim only plan, you do not need broadband at home, go to libraries for free wifi when necessary 

 

 

Has anyone tried depending on mobile data for WFH? I don't watch movies online.

 

I thought of cancelling my home board band but if I'm sure if my phone can take the heat

[earth_tone]

Although this question wasn't directed to me, still allow me to share my thoughts — If you wfh, meaning your job permits you to perform your role virtually in place of physical clock-in so internet connection is essential, and if you need to be online 8-9 hours a day minimum* that is very high volume of data you're looking at. Mobile data tethering is not only less stable but also insufficient. 

 

*If you don't exceed 4gb of data per day (for work and leisure) may be possible...