S’poreans’ retirement funds enough for only 13 years: DBS survey

[Harvest Time]

Assume 500k - 1st year expenses ($36K) and then multiply by (1 + interest/return rate), to get next year balance

500K with 1% return will last 14 years+
500K with 2% return will last 16 years+
500K with 3% return will last 17 years+
500K with 4% return will last 19 years+
500K with 5% return will last 22 years+
500K with 6% return will last 26 years+
500K with 7% return will last 35 years+
500K with 8% return will last forever as your balance keep on increasing

[HitandRun]

S’poreans’ retirement funds enough for only 13 years: DBS survey

SINGAPORE — The amount of money that emerging affluent (EA) individuals in Singapore intend to set aside for their retirement will last them only about 13 years, based on their expected expenditure after they leave the workforce, a new survey by DBS has revealed.

The survey released yesterday showed that 73 per cent of respondents planned to retire at between 55 and 65 years old with savings of S$571,715, on average. More than 85 per cent said they expected to live on a retirement income of S$3,500 a month for the next 15 to 20 years or more.
...
http://www.todayonline.com/singapore/spo...dbs-survey

I always wonder at the low credibility of such surveys.

If the survey truly paints a complete picture of the retirement situation, we should expect many retirees complaining that they have run out of funds. We have > 250k folks who are 70+. Do we see a big proportion of them begging in the streets or surviving on welfare?

[Temperament]

Assume 500k - 1st year expenses ($42K) and then multiply by (1 + interest/return rate), to get next year balance

500K with 1% return will last 12 years+
500K with 2% return will last 13 years+
500K with 3% return will last 14 years+
500K with 4% return will last 15 years+
500K with 5% return will last 17 years+
500K with 6% return will last 18 years+
500K with 7% return will last 22 years+
500K with 8% return will last 27 years+
500K with 9% return will last 48 years+
500K with 10% return will last forever as your balance keep on increasing

So those wil 500k should dump all their money into REITS that gives above 7% returns or more...

Does that means with 1000K@7% can shake legs liu?

[Temperament]

S’poreans’ retirement funds enough for only 13 years: DBS survey

SINGAPORE — The amount of money that emerging affluent (EA) individuals in Singapore intend to set aside for their retirement will last them only about 13 years, based on their expected expenditure after they leave the workforce, a new survey by DBS has revealed.

The survey released yesterday showed that 73 per cent of respondents planned to retire at between 55 and 65 years old with savings of S$571,715, on average. More than 85 per cent said they expected to live on a retirement income of S$3,500 a month for the next 15 to 20 years or more.
...
http://www.todayonline.com/singapore/spo...dbs-survey

I always wonder at the low credibility of such surveys.

If the survey truly paints a complete picture of the retirement situation, we should expect many retirees complaining that they have run out of funds. We have > 250k folks who are 70+. Do we see a big proportion of them begging in the streets or surviving on welfare?

Those who are 70+ and above, their generation usually have more then 4 or 5 children. By the time your generation, sorry you have to look after yourself.

[corydorus]

S’poreans’ retirement funds enough for only 13 years: DBS survey

SINGAPORE — The amount of money that emerging affluent (EA) individuals in Singapore intend to set aside for their retirement will last them only about 13 years, based on their expected expenditure after they leave the workforce, a new survey by DBS has revealed.

The survey released yesterday showed that 73 per cent of respondents planned to retire at between 55 and 65 years old with savings of S$571,715, on average. More than 85 per cent said they expected to live on a retirement income of S$3,500 a month for the next 15 to 20 years or more.
...
http://www.todayonline.com/singapore/spo...dbs-survey

I always wonder at the low credibility of such surveys.

If the survey truly paints a complete picture of the retirement situation, we should expect many retirees complaining that they have run out of funds. We have > 250k folks who are 70+. Do we see a big proportion of them begging in the streets or surviving on welfare?

This generation of old people can eat porridge and stay home all day. No computer, no holidays, no .. no .. no.. And their children probably 40s/50s can also take care of them.

The future generation of old people not only have to care for their own needs but also their children when they married

[Temperament]

Assume 500k - 1st year expenses ($42K) and then multiply by (1 + interest/return rate), to get next year balance

500K with 1% return will last 12 years+
500K with 2% return will last 13 years+
500K with 3% return will last 14 years+
500K with 4% return will last 15 years+
500K with 5% return will last 17 years+
500K with 6% return will last 18 years+
500K with 7% return will last 22 years+
500K with 8% return will last 27 years+
500K with 9% return will last 48 years+
500K with 10% return will last forever as your balance keep on increasing

So those wil 500k should dump all their money into REITS that gives above 7% returns or more...

Does that means with 1000K@7% can shake legs liu?

And i can't forget someone has displayed a picture of a farmer milking his milk cows on his farm. And guess what represent the equivalent of reits?

[opmi]

Does that means with 1000K@7% can shake legs liu?

And i can't forget someone has displayed a picture of a farmer milking his milk cows on his farm. And guess what represent the equivalent of reits?

REITs dont last forever. Will kenna property cycle & interest rate hikes. Then have to recap or face dilution. Thats I said low gearing (<20%) REITs, if any. Have to time entry into REITs.

[Harvest Time]

500K with 1% return will last 12 years+
500K with 2% return will last 13 years+
500K with 3% return will last 14 years+
500K with 4% return will last 15 years+
500K with 5% return will last 17 years+
500K with 6% return will last 18 years+
500K with 7% return will last 22 years+Assume 500k - 1st year expenses ($42K) and then multiply by (1 + interest/return rate), to get next year balance


500K with 8% return will last 27 years+
500K with 9% return will last 48 years+
500K with 10% return will last forever as your balance keep on increasing

So those wil 500k should dump all their money into REITS that gives above 7% returns or more...

Does that means with 1000K@7% can shake legs liu?

Assume $1m - 1st year expenses ($42K) and then multiply by (1 + interest/return rate), to get next year balance

$1m with 1% return will last 27 years+
$1m with 2% return will last 32 years+
$1m with 3% return will last 40 years+
$1m with 4% return will last 64 years+
$1m with 5% return will last forever as balance keep on increasing

[koh_52]

REITs dont last forever. Will kenna property cycle & interest rate hikes. Then have to recap or face dilution. Thats I said low gearing (<20%) REITs, if any. Have to time entry into REITs.

Exactly, you cannot rely on Reits to retire, but if you have 1 million CASH and without any liabilities (like, housing instalment, children uni-education, car loan, mistress, hehe, etc.) Technically speaking you can anytime retire liao
In-addition, a fully paid HDB and 3 private properties to collect rent, better still. Also dun ever expect to rely on your children insist be prepared to fork out cash down-payment for their new house.

I think Temperament san belong to this ideal financial health:

Cash : 1 million in FD@ 1% = $850/mth (waiting for market to crash)
Stock: 250 k @4% = $850/mth (blue chip counter)
Rental @ 2.5% - 3% = ???
Bond/Preference share/STI index fund: 150k @3% = $375/mth
CPF OA/SA/RA : 250k @3.5% = $730/mth
But still working part-time say with allowance = $2,000/mth

If dun work very boring, unless very stressful or health reason then it different story.

Mine you with all this income, your Capital is left untouched, all you have to do is to think how to preserve your existing capital.
Assuming healthcare cover by IP from your medi-save.

[Temperament]

REITs dont last forever. Will kenna property cycle & interest rate hikes. Then have to recap or face dilution. Thats I said low gearing (<20%) REITs, if any. Have to time entry into REITs.

Exactly, you cannot rely on Reits to retire, but if you have 1 million CASH and without any liabilities (like, housing instalment, children uni-education, car loan, mistress, hehe, etc.) Technically speaking you can anytime retire liao
In-addition, a fully paid HDB and 3 private properties to collect rent, better still. Also dun ever expect to rely on your children insist be prepared to fork out cash down-payment for their new house.

I think Temperament san belong to this ideal financial health:

Cash : 1 million in FD@ 1% = $850/mth (waiting for market to crash)
Stock: 250 k @4% = $850/mth (blue chip counter)
Rental @ 2.5% - 3% = ???
Bond/Preference share/STI index fund: 150k @3% = $375/mth
CPF OA/SA/RA : 250k @3.5% = $730/mth
But still working part-time say with allowance = $2,000/mth

If dun work very boring, unless very stressful or health reason then it different story.

Mine you with all this income, your Capital is left untouched, all you have to do is to think how to preserve your existing capital.
Assuming healthcare cover by IP from your medi-save.

Ai'yoh Koh San,
不 要 害 我 lay,
知 足 者 常 乐