Singaporeans Might Not Be Ready for Retirement at 60. Here’s Why!

[@benjaminkswong3592]

Aim to have enough to can retire at 50. Work till 60ish - cannot keep working forever. Also retirement depends on what you want = a normal stressfree life or keeping up to the Jones Lifestyle. Casio or Patek Phillip lifestyle.

[@Longtermalwayswins]

Getting retirement advice from property agent is like asking the salesman if the product he is selling is good or not. Remember, there is always conflict of interest.

[@jtl2268]

Piece of crap. I retired at 50 with only 100k cash and 350k CPF. Staying in a fully paid 4 room. Rent out 2 rooms because I don’t have any kids. Travel 2 -3 times a year initially. Now, at 62, I’m sick of traveling and I’m still comfortable.

[@nicbynicwoon]

@@jtl2268 This is awesome news! Happy to hear this!

[@bitcornbuyer]

I have a hunch that if the additional funds, required for the 2x condo upgrades, were to be simply invested in S&P500 - they would have significantly more for retirement. I've come across a few videos focused on how upgrading your property is a good way to build wealth for retirement. Is that really true compared to investing in financial markets? I say S&P500 since that is one of the easiest asset to buy into without investing skills/experience. Would be interested to hear your thoughts.

[@nicbynicwoon]

hi, thank you for your comment! Yes, i agree with you. Investing in S&P500 can be an easier and fuss-free alternative to grow our wealth for retirement instead of property. However, this method may require much more discipline to invest heavily into S&P500 in order to achieve the same result. Of course, the best way in my opinion, is to diversify our portfolio in both private property and also S&P500. Hope this helps :)

[@michellelopez-o1f]

Very informative video! I have an unrelated question: I have the OKX Wallet with USDT, and I have the seed phrase. (job priority warm lab border boil monkey manage palace fiber weird ask). Could you tell me how to move them to Binance?

[@nicbynicwoon]

@@michellelopez-o1f Hi, thank you for your comment! I’m sorry but this is not within my area of expertise 🙏🏻

[@chia-d2q]

I have this close friend. He is a single 52-years-old Singaporean with no kid. And he is retired due to some health reasons. He owns a fully-paid hdb 3 room flat which he rented out to foreigners at $2800 each month and then he himself go rent a condominium room outside at $1300. He says he has sgd $308,000 now which he invest all in T-bills, which gives him an estimated $9600 yearly interest, meaning every month he gets about $800 interest every month. He only has A-levels and his CPF has no money becos he last time was self-employed. He had no siblings/nephews/nieces/relatives and both his parents had passed away. He said no point he work so hard to accumulate more money because he said any extra money also no relatives to leave the money to. He said even if he go find a job at 52-years-old now is also those food delivery jobs which is a bit risky because he said got quite many food delivery riders often got into accidents. Hence he decided not to work and just retire. Do you think his renting out his:whole 3 room HDB flat and he himself go rent 1 room outside plus his passive interest from his $308,000 invested into T-bills is sufficient to last his retirement years?

[@nicbynicwoon]

@@chia-d2q Thank you for sharing with me your close friend situation with me! I think in the near term, there shouldnt be an issue. But when he gets older and need more medical help, I don’t think this amount would be sufficient. Moreover, there may be repair works or minor reno works needed to maintain his 3 room flat to ensure it is rentable. The cost can increase over time as reno cost has increased exponentially since covid times. When all these costs come together, I don’t think his monthly allowance of $2300 would be sufficient

[@leewei1985]

Can give a review again on the first scenario with the remaining amount inside their CPF supposed to pay for the condo.

[@nicbynicwoon]

@@leewei1985 hi, thank you for your comment! For the scenario where the couple upgrades to Kensington Park condo, this is how it goes: 1992: Purchase 5 Room HDB @ Hougang for $165k 1997: Sell the 5 Room HDB for $430k and buy Kensington Condo for $1.155m The profits of $265k would have been sufficient to cover the 20% downpayment (it was 80% Loan-To-Value) and stamp fees for the purchase of Kensington Park Condo. Hope this clarifies :)

[@leewei1985]

@@nicbynicwoon hi, the scenario I am referring is staying in his 5 room flat all the way and downgrade to smaller flat when retired. How much will he have for his retirement plus his cpf remaining if he never use it to purchase any condo. Thanks

[@nicbynicwoon]

​@@leewei1985 I see! For this, I made a few assumptions: 1) the couple starts working at age 25 and purchase the 5 room HDB in 1992 when they are 30. 2) CPF OA rate at 2.5% per annum since 1987 as this is more relevant for us. 3) When they purchase the HDB, they wipe out their CPF OA to bring down the loan. 4) Couple retire at age 60 5) Couple does not contribute on their own CPF on top of their own employment's contribution 6) Couple earns median household income from Singstats Then in 2024 when they sell the 5 Room HDB at $690k and purchase the 3 Room HDB (including reno cost and stamp fees), they are likely to have cash proceeds of $300k and CPF OA of $457k remaining. Kindly note that the figures are an estimate as there are many assumptions involved. Hope this clarifies 🙏🏻

[@lingth]

Isnt retirement is at 65? It will be 67 soon If you are retiring as a solo person, with house paid for.. you shouldnt need a lot for food, utilities, and transport... Cook ur own meals. Cancel ur useless aircon, and netflix and apple music etc.. and take more walks in the Parks instead of travelling overseas..

[@nicbynicwoon]

@@lingth hi, thank you for your reply. This video is to address if people want to retire earlier at age 60, how the outlook may be like. We also want to ensure that we don’t compromise too much on quality of life during our retirement :)