When I look at the numbers, instantly I knew that there is a disconnect between the targeted savings $570k and the $3,500 income. The savings required are definitely not enough. Let’s look at the factors involved.
1. Inflation
Assuming that $3,500 is the targeted present value of expenses required during retirement, inflation will make the number a lot higher by the time you retire. Assuming a 3% inflation rate, and that you are 30 this year and you intend to retire at 60, ......A recent survey by DBS showed that there is potential disconnect between targeted retirement goals and the retirement income they expect to live off. According to the survey, 73% of the people planned to retire between 55 and 65 with an average savings of $571,715. More than 85% of them expect to live on a retirement income of $3,500 for the next 15 years or more.
When I look at the numbers, instantly I knew that there is a disconnect between the targeted savings $570k and the $3,500 income. The savings required are definitely not enough. Let’s look at the factors involved.
1. Inflation
Assuming that $3,500 is the targeted present value of expenses required during retirement, inflation will make the number a lot higher by the time you retire. Assuming a 3% inflation rate, and that you are 30 this year and you intend to retire at 60, ......
When I look at the numbers, instantly I knew that there is a disconnect between the targeted savings $570k and the $3,500 income. The savings required are definitely not enough. Let’s look at the factors involved.
1. Inflation
Assuming that $3,500 is the targeted present value of expenses required during retirement, inflation will make the number a lot higher by the time you retire. Assuming a 3% inflation rate, and that you are 30 this year and you intend to retire at 60, ......
