One of the questions most people have about retirement is “How much is enough for retirement?”

For the average Singaporean, becoming a millionaire is like a dream come true. It helps to explain the snaking queues during those Hong Bao Draws at Singapore Pools. Most people can only hope.

The Mrs and I turned 30 not too long ago and we are constantly advised that it is never too early to start our retirement planning. But I am wondering if we turned 65 today, would $1 million be enough for our retirement?

$1,000,000 will last us 32 years…If we spend $42,000 a year or $3,500 a month

If we consider the following assumptions:

  • Amount is deposited in fixed deposits or short-term endowments
  • Annual returns of 2%
Yearly Expenses $36,000 $42,000 $48,000
How long $1 million can last 40 years 32 years 27 years

This $1 million will be able …