For most Singaporeans, our property makes up 70% to 90% of our Total Assets and is one of the keys to unlocking our retirement funds
In the article below, John, who wants to retire at 65 years old with $3,000 to spend each month will need to set aside a retirement fund of almost $1,150,000.
However, many would agree that $3,000 a month might seem a little too high and it really varies depending on a person’s lifestyle.
As such, let’s assume a $3,000 monthly expenses for a couple, which means $1,500 for you, and $1,500 for your spouse.
In fact, this is very close to the amount the current generation of retirees actually need as shown in the article below…
In Singapore, the Retirement Age is at 65 Years Old while the Life Expectancy is at 85 Years Old.
To put it simply, we should expect and want to live for at least 20 years after retiring.
If a couple were to spend $3,000 a month on their basic necessities such as food, transport, utilities, etc…
$3,000 x 20 years = $720,000
Even if we were to put inflation aside, in order for a couple to retire on just $3,000 a month, we will need to have at least $720,000.
Inflation is a very real thing that we can all agree on. A plate of Chicken Rice cost only $1.20 in the 1990s but has since tripled in price to $3.50 in 2012.
What do you think will be the “value” of $720,000 during your retirement age?