Why You Need $1.9M to Retire in Singapore

[@SeanFooGold]

Kelvin's estimate is quite there. Inflation is the big killer. You cannot afford to not invest today.

[@Suck..Pacifier]

👍

[@scbchong6964]

SG daily living cost is very reasonable and low. It is lifestyle costs which are high. The cost of needing to show off with designer renovations; The cost of big housing loan for your first home; the cost of showing off with new car when COE is high; the cost of holidays every quarter; the cost of expensive hobbies/amusements/entertainment/leisure. btw you forgot that median personal income is S$3800 while household income is S$10k per month.

[@learninvestearnsave]

kelvin did mention household income is around 10k

[@tanyam2348]

Thanks for sharing opinions from different perspectives. For my personal observation and experience as a retiree, I believe it is not how much that would decide , how old you can retire , which country you would retire coz it is quite various.. to me the most important criteria one needs to meet before talking about how much and how old 1/ Debt free (no more loan) 2/ no burden from old parents or children (nobody depends on you to survive ) 3/ no more 😊 hao lian (show off or need validation from public ) 4/ very disciplinary to control your budget plan .

[@cbllynn]

Good point on problem awareness from Chi Keng.

[@mjmf1430]

In Australia most "normal" eat-outs charges the Sing dollars equivalent of S$20 to S$22 for a plate of noodles or fried rice. In many ways Singapore’s meals are very cheap comparing amongst developed countries. Over here, the salary scale of median income is almost equal to Singapore.

[@Unanimousy48]

14:16 Not sure what to think when I compare my living expenses to the group. Currently it's $2k/mth ($1.5k = Groceries + Bills) but that's because I'm solo supporting my retired mum and unemployed sibling. Originally we were both supposed to split the bills + groceries 50/50 which would bring my expenses to $1k/mth but..life doesn't go as planned. Still, even with the handicap, feels lower than what the rest are spending. Kelvin (Family of 3) : $2k-$3k/mth Chi Keng (1 Person - Fresh Graduate, No Car, No Mortgage) : $2k/mth Boon Tee : $3k~/mth Eric (His share for Family of 3): $2.5k/mth

[@taychikeng]

Just wanted to clarify here, based on the calculations Kelvin did, I think my expenses are probably closer to 1- 1.5k (which was the input in his excel). My casual remark of "spending 2k myself, was just to poke jab at Kelvin" - hope it clarifies. For myself, my largest expenditure is really on food - and it varies widely... so the number is not fixed.

[@BoonTee]

Mine is family of 4. The big items are children education e.g. tuition

[@learninvestearnsave]

No need to compare with us. Most important is, is this rate you are doing now on track for your desired retirement lifestyle. The equation have to take into account how much are you earning, not just how much you spend.

[@mymemorieslane]

Sadly our salary always doesn't catch up with inflation, unless one keep hopping but it won't last long too as your market value will drop when you age and companies will prefer younger employees with more fire rather than you.

[@BoonTee]

There are two types of inflation 1) Economic inflation (i.e. CPI) 2) Lifestyle inflation Economic inflation is out of our control, but lifestyle inflation to certain degree is under our control

[@mjmf1430]

Singapore median income and other income benchmarks are amongst the highest in the world, and the highest in Asia according to latest statistics.

[@ronaldtan2543]

Cost of car ownership for $100k car price inclusive of COE is S$180,000 for a period of ten years (depreciation $90,000; loan interest $15,000; road tax $7,000; maintenance and repair $20,000; insurance $7,000; Petrol $25,000 ; Carpark, ERP $6,000). Cost per month $1,500 for every 10 years. If one choose to own a car for 30 years, based on the above, the capital outlay will be a total of $540,000. But instead , one invest this $1,500 per month at a compound rate of 4% pa for 30 years, the value is worth $1 million…

[@BoonTee]

Eric will smile looking at this calculation 🙂

[@learninvestearnsave]

Car to me is just for convenience and saves time. Personally i wouldn't buy car if i were single.

[@learninvestearnsave]

@@BoonTee Why? It's quite accurate breakdown of the cost albeit slightly higher than entry level car. Vezel i think is around 150+k

[@hagarhagar2695]

Can I have the link for the excel sheet?

[@kipklop975]

Where can we see your investment portfolio? You mentioned its public.

[@tamsweechin6071]

Good discussion about this topic...

[@DonkiDonkey]

Most poor elderly I know treat investments like gambling. They are so against buying stocks instead, they prefer to consistently DCA into 4D & Toto over decades. Imo, 4D and Insurance agents are the retirement killers. Also, Congratz CK on the projected retirement!

[@taychikeng]

That's provided I don't blow all my investment monies 😂

[@Suck..Pacifier]

Old people difficult to understand how stock work. So afraid Loh.

[@BoonTee]

@@taychikeng the factor that will jeopardize your retirement is not investment returns.. it is lifestyle inflation

[@scbchong6964]

Many singaporeans have spending appetites outsized to their actual talents, work skills, attitude and earning power. So live within your Means ie. earning power and talent/work skills.

[@learninvestearnsave]

Or upgrade said skills.

[@scbchong6964]

@@learninvestearnsave One aspect you did not touch on is the fact that everyone is given different talents and abilities. And some singaporeans like to complain and blame govt yet got bad attitude at work.

[@ObeluStrawberry]

i am single and if do not include income tax, i spend around 800 to 1200 per month, i have track my expenses for minimum 3 years. it stay consistent, of course when my salary increase my income tax goes up but i am using non income tax to track for retirement. of course every year i do have big item spending like tour or buying phone, those one off spending i track it as annual expenses.

[@learninvestearnsave]

gd job

[@mjmf1430]

If one needed 3.5K monthly to live, after 10 years due to 3% inflation (for example), that would amount to$4.7K monthly. After 20 years, the same 3.5K today would be the equivalent of $6.3K monthly. In that sense due to inflation, even with CPF life Enhanced plan, it wouldn’t be enough for anyone if CPF life enhanced plan is the majority of one’s 3.5K monthly pension fund in today’s money.

[@derrickcsh]

Its the work life wealth balance in term of everyone individual lifestyle that determine how much to save for the future.

[@cac1504]

In time to come, those above 35 years of age do not have to work. Selling off their million dollar HDB homes will take care of early retirement. Who knows, we may even be like the USA with citizens living on the streets. They call it a 'lifestyle choice' when homes become unaffordable, though still very affordable according to official narratives, for some folks. With every family having two or three HDBs, ie the elderly and two kids, even renting out one home is good enough to tide them through. In time to come, Singapore will be a retirement paradise. Citizens do not have to work till 65, just live on the rental of their properties at age 35, and do not have to work after that. Now with HDB flats selling above a million dollars happening a dime a dozen, life is really so good that not many think it necessary to work, with all the added subsidies thrown at them. They are even asking for applications to participate in various schemes. No wonder so many foreigners are rushing for citizenship.

[@lishr4536]

wth lol if Chi Keng just started working how does he already have 100k portfolio?

[@BoonTee]

hustling

[@dunno43215]

Haha yes i have the same question!

[@stanicng]

His KZbin can generate 10K per month easily, 😂

[@xfall86]

Disagree. Using 2.5% oa interest as a gauge. Prices will double close to 30yrs fr now. And like what kelvin said , whats the use of having 2mil 3mil after 65 if you have completely sacrificed your youth. I just spend on things which makes me happy, but within my means.

[@BoonTee]

2.5% is not a good gauge, and CPI inflation tend to understate the actual inflation. You can google the Forbes article "Big Mac Index Shows Official CPI Under Reports Inflation (2022)", it explains that Big Mac Index shows that actual inflation is 1-2% higher than the CPI inflation. So at inflation of 3.5%, prices double every 20 years. You have to count how many 20 years in your retirement projection.

[@silverchairsg]

To be honest it seems like getting rich is not an aspiration nowadays, it's a necessity simply to survive.

[@pangarans]

I thought the amount is really dependent on one’s need and expectations at retirement?

[@BoonTee]

you're right!

[@learninvestearnsave]

Yes, just discussing a ballpark figure for the average guy

[@scbchong6964]

btw Why none of you have spoken to your parents? Surely they are in their late-50s now. Why never ask how much they earned when first started working, how they saved, whether they tried any investing, and how they could afford to raise each of you?

[@learninvestearnsave]

You mean interview them for this video? Of course we talk to them but their context 40+ years ago is hardly relevant to the majority of us now.

[@scbchong6964]

@@learninvestearnsave No, the lifestyle choices "problem" remains relevant. The living within one's Means is very relevant. And isn't it very conceited to think the older folks got nothing to teach you?

[@learninvestearnsave]

​@@scbchong6964 Yes you are right.

[@BoonTee]

I am just curious how @scbchong6964 assume that we have not spoken to our parents and asked those questions

[@小鸽子小鸽子]

I agree that it will be interesting to interview your parents or someone in the slightly older generation. There are always economic cycles and learning how others did (or did not do) things might bring you unexpected lessons.

[@conversionlyft]

Kelvin is realistic, good.

[@kaliyaperumaldeepan85]

It does not relate to the life expectancy of Singaporean as well.

[@learninvestearnsave]

83 for men, 85 for women

[@learninvestearnsave]

first!