Jump to content

What do you really spend on and how much?

Enye

By Enye,
in Investment & Financial Matters

 Share

Recommended Posts

Wt_know

Wt_know

Supersonic

migrate means give up sg citizenship then can withdraw cpf

but msia do not easily give citizenship la

your next best bet is australia but oz don't like old people > 45 wor

 

Can. Migrate to msia after sell house n withdraw cpf

 

↡ Advertisement
Link to post
Share on other sites
Juzzme

Juzzme

3rd Gear

if retirement plan = you must sell your current flat and then downgrade to one room ... is this still considered a retirement plan?

sell or monetize existing flat = bonus and not a must

similarly, you ask a financial planner to come up with a retirement plan for you, will he/she factor in 20-30 years later you must sell your flat?

 

Govt will probably tell u that its our own fault to begin with. If we never plan ahead and buy a big house without ensuring sufficient retirement savings, then we have to be brought back to reality later by downgrading to a smaller flat. KBW recently made this point about how people should do their sums before chasing after properties.

Link to post
Share on other sites
Juzzme

Juzzme

3rd Gear

get married at 30 use all of OA for downpayment and installment till age 60, all that left is the minimum sum of 139k?

 

Unuff till u die?

 

Retire at 80, surrender IC at 81....sure enuff :o

Link to post
Share on other sites
Tiger1

Tiger1

6th Gear

Wat a zjoke!!!

 

If i can tell the govt, i would say- pls lor, pls dun help us. i know we got a prob BUT pls dun try to "help". Plssssss.

Cos everytime U "help" me $1, end up i got to PAY you back $10. so many times liao. Teo bo....so pls dun try to help. I will find my own way. NB!

Link to post
Share on other sites
Felipe

Felipe

3rd Gear

migrate means give up sg citizenship then can withdraw cpf

but msia do not easily give citizenship la

your next best bet is australia but oz don't like old people > 45 wor

really? Tot msia boleh?

Link to post
Share on other sites
HP_Lee

HP_Lee

5th Gear

No need to save cash from your monthly disposable income for retirement anymore...woohoo govt say wan :D

 

no need multiple income streams, investment etc life is so simple

 

i got it wrong all this while... [:(] better start spending -_- since CPF can provide me 71% of my pre retirement income even after paying for housing

 

 

YOUNG Singaporeans starting work today will have enough savings in their Central Provident Fund (CPF) accounts to retire comfortably in their golden years, says a study commissioned by the Manpower ministry.

 

They would have accumulated CPF savings that will give them a comfortable level of income in retirement - a level equal to a large part of their pre-retirement earnings, it says.

 

Deputy Prime Minister Tharman Shanmugaratnam, giving a preview of the findings, said, however, that the CPF balances of older workers will be inadequate, although most of these individuals would have gained from the rise in the value of their homes, courtesy of government subsidies, earlier withdrawal of CPF savings and economic growth.

 

"Our strategy is to help them monetise the values of their homes in retirement if they wish to," said Mr Tharman, who is also Finance minister.

 

He was delivering a keynote address at the opening of the Singapore Human Capital Summit conference.

 

The study he was referring to was done by National University of Singapore professors Chia Ngee Choon and Albert Tsui.

 

In their study into whether the CPF system adequately meets retirement needs, the professors computed what economists call the income replacement rate (IRR), which is the ratio of retirement income to pre-retirement earnings.

 

Using all CPF savings acccumulated by a worker up to the age of 65, including savings above the CPF Minimum Sum which the worker can withdraw at age 55, they found an IRR of 71 per cent for a median male worker who starts working today. The female median worker's IRR is 63 per cent.

 

These IRRs factor in only the cash savings in the CPF; they exclude the benefits the worker gets from owning a home.

 

"These IRRs are within the recommended range by the World Bank, which is between 53 per cent and 78 per cent," Mr Tharman said. "They are also comparable to those seen in pension systems in many developed countries."

 

The equivalent IRR in the median country in the OECD, the league of rich nations, is 66 per cent of pre-retirement earnings, while the average among the OECD countries is 72 per cent.

 

Mr Tharman pointed out that Singapore's IRR is even higher when its near-universal home ownership - under which homes are fully paid by the time workers hit retirement age - is taken into account.

 

"By not having to pay for rent, cash is freed up for other living expenses in (the workers') old age," he said.

 

With workers who are already older, however, he acknowledged that their CPF balances will be insufficient for three reasons: their wages were much lower in the past; they were required to set aside less in their CPF retirement account; and the fact they could use much of their CPF savings for housing.

 

The study found the IRR to be lower for higher-middle earners because, as Mr Tharman pointed out, the CPF system is designed to meet the retirement needs of workers in the middle- and lower-income groups.

 

High-income earners have private savings.

 

Workers in the lower income group, in fact, have an IRR of 81 per cent of pre-retirement income. If the supplements of their wages through the Workfare programme are included, the IRR is even higher - 93 per cent.

 

Mr Tharman said: "The results of the study are an important validation of the CPF system. The refinements we have made to it over the years have ensured that the vast majority of young Singaporeans will receive adequate payouts in retirement."

 

He pointed out, though, that it still falls to individuals to take responsibility and save, and for employers to take the responsibility of providing good jobs, sharing productivity gains fairly and keeping older workers employed.

 

The fifth edition of the Human Capital Summit is hosted by the Human Capital Leadership Institute, the Ministry of Manpower and the Singapore Workforce Development Agency.

 

At the conference yesterday, Acting Manpower Minister Tan Chuan-Jin presented this year's Asian Human Capital Award to digital-security specialist Gemalto and global supply chain manager for agricultural products Olam International for their people-management practices.

 

MTR Corporation, Tata Consultancy Services and Toyota Motor Philippines Corporation were named Special Commendation Prize Winners.

 

 

I heard wrongly?? [confused]

Link to post
Share on other sites
HP_Lee

HP_Lee

5th Gear

Great point!

 

Now I can see how their study make sense.

 

If one starts working now at age 23-25 he will retire at age 65. By that time the parents are long dead ......... somemore so many of their uncles/aunties etc probably no children............ another golden pot. Yahoo!!

 

OK it all makes sense now.

 

 

:D

 

Why suddenly now than I know this ? [laugh] Now than I know why my younger staffs can drive luxury cars. [bounce2]

Link to post
Share on other sites
HP_Lee

HP_Lee

5th Gear

Means must work till 65... then retire, right??

 

You believe??

 

Let me do some Math for you. Look at the inflation eating into your dollar. Lets say today i have $1k. By the time you are 60, your $1k worth only $610.27. After 60 you may need savings for next 20 years till 80.

 

At 80 onwards :

Monthly draw from savings $3k

Per year = $36k

For 20 yrs need = $720k of today's value

 

Not forgetting that 2.5 - 3.5% inflation eating into the $720k yearly. Worst still this $720k ended up only $439,395.08 by 60 yrs time.

Face it. Unless you are waiting from your parent's estate.

 

Interest_Compounding_worksheet.pdf

 

 

 

 

 

Link to post
Share on other sites
Mightymito

Mightymito

1st Gear

[:/]

Great point!

 

Now I can see how their study make sense.

 

If one starts working now at age 23-25 he will retire at age 65. By that time the parents are long dead ......... somemore so many of their uncles/aunties etc probably no children............ another golden pot. Yahoo!!

 

OK it all makes sense now.

 

 

:D

 

 

If the 23-25 yr old are smart they would start sucking up to their unmarried aunties and uncles [nod] . Maybe can retire at 45

Link to post
Share on other sites
Enye

Enye

Hypersonic
  • Author
(edited)

got these type sure can retire

 

http://www.straitstimes.com/breaking-news/...review-20120921

 

Retiree Soh Poh Neo, 56, said she bought a 1,152 sq ft three-bedder for $1.37 million, or $1,188 psf, as an investment for her son.

 

got these types no need to work, don't even need to talk about retirement.

 

:D

Edited by Enye
Link to post
Share on other sites
Wt_know

Wt_know

Supersonic
(edited)

buy another flat at $1M and pocket $2M profit, can?

 

If you sell this for 3Mil, you dun need a roof over head? [confused]

Edited by Wt_know
Link to post
Share on other sites
HP_Lee

HP_Lee

5th Gear

buy another flat at $1M and pocket $2M profit, can?

 

This is what you think in future. By than I dun know how the average price already [laugh] Many think like that also. Probability unknown to me.

Link to post
Share on other sites
RadX

RadX

Moderator

Thot id give some context.

 

moving to slowing down so:

 

1. monthly spending items and in what?

2. age in 2025

3. How much?

 


as usual I have my excel😂 and I’ll post it later but those who dun track, why don’t u?

 

↡ Advertisement
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing
×
×
  • Create New...