It seems $5000 is the magic number to live comfortably for retirement in Singapore, as I have seen a few posts on this, However, one needs to know that this amount will varies as it really depends on one's lifestyle and situation.
Anyway, given this amount, how then do you achieve it for your retirement?
Before I start, here are the assumptions:
- Attained Full Retirement Sum(FRS) at 55
- Opt for CPF payout at 65
- Sum of $408,000 invested in a ETF which gives a return of 8% or more at 55
- Retire at age 65.
The amount invested will be much lower if this is shared with your spouse. as not forgetting that your spouse will also have his/her CPF payout as well.
Having prepared the above at 55, when you retire at age 65, you will:
- receive CPF payout of about $1600
- based on rule 72, the amount that you have invested will be double at age 65, which will give you a monthly of another $3400
- Therefore at age 65
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