Stretching my retirement funds

When I stopped work, I did not get monthly salary and bonuses. I rely on my retirement funds and investment returns to pay for my expenses. I definitely cannot spend freely knowing that my retirement funds can run out. Therefore, I watched my expenses and cash outflow very carefully.

Between 2012 and 2015, my spending budget was cut by 30%. The way I did it was to eradicate or to reduce some expenses. Below are some ways.

  1. I resigned from some professional bodies. I gave up memberships to Chartered Institute of Management Accountants (UK), CPA Australia, and Singapore Computer Society. I only retain one professional body, ie Institute of Singapore Chartered Accountants.
  1. I have stopped attending CPA Dinner talks held every month. This costs $810 a year.
  1. I gave up membership to club houses. One club house was Temasek Club.
  1. I only watch movies on weekdays to take advantage of senior citizens concession rates (age 55 and above). Ticket price is $4.50 (for GV theatres) Even for that, I hardly go to movies. Nowadays, my family borrows DVDs from public libraries and watches them at home.
  1. I change my Singtel mobile plan to a Silver Plan. This plan is for those aged 55 and above. The monthly subscription is reduced by 20% from normal plan. In my case, I opted for Combo 2 with 2GB local data. This plan is sufficient for my daily usage. It costs me about $40 per month.
  1. I do not spend much on clothing, just enough to keep me looking presentable. I do not buy office wears now.

Future plan

I still own a car bought in 2009 at about $53,000 (inclusive of COE) during the Global Financial Crisis. Car expenses are a huge outlay. It takes up about 13% of my total expenses. This car has another 3 years to go. I plan to stop owning a car and take public transport in three years time.

What is worrying me?

My concern is keeping medical costs down as I get older. I spent on medical checkups, dental care, and eye health. These are at private patient rates because I am not entitled for CHAS or PGP. For major hospitalisation, I bought medical insurance and living assurance policies to help cover some of these costs. These insurance premiums cost money.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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