A young lady wanted $10,000 per month when she retires. She was captured saying that on a CPF Board corporate video shown during the recent talk by CPF. That can’t be right. Say she retires at age 60 and live till 85 years old, the total retirement amount can come up to $3 million (without factoring in investment returns on retirement sum set aside).
If we were to rely on CPF Life for retirement income, the monthly payout amount is about $1,000. $10,000 per month is too much! Do we really need $10,000 per month for retirement?
I looked at my family circumstances and prepared a detailed budget of monthly and annual expenditures. Some expenses are absolutely necessary like food, grocery, transport costs, utilities bills, telecom bills, and housing related costs such as property tax, management fees etc. Other expenses include some money set aside to support elderly parents, medical and dental costs. Discretionary expenditures include costs incurred on overseas trips and on personal grooming.
Based my own calculations, I would need at least $3,000 per month to live adequately as a family. This amount does not include the discretionary expenditures. Payout from CPF Life is not sufficient. Even with both my wife and I are getting CPF Life payouts, the family is still short by $1,000. So we have to see what else can be cut in order to depend on CPF Life for retirement. If not, we have to have other savings for retirement or obtaining other sources of income.
Copyright © 2014, limkimtong for Living Investment
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