Let assume the following:
1) Year 1 draw-down at 4% of your Retirement Fund at 55
- expected Year 1 expenses is $40K, then Retirement Fund of $1M (25x$40K) is required
- expected Year 1 expenses is $30K, then Retirement Fund of $750K (25X$30K) is required
- expected Year 1 expenses is $20K, then Retirement Fund of $500K (25X$20K) is required
2) Inflation rate at 3%. (More articles related to inflation)
3) CPF Life providing yearly income at $12K from 65 onwards (assuming CPF minimum sum)
4) CPF OA balance at $300K to earn compound rate at 2.5%
5) $500K to invest in stocks with success rate at 40% of $500K providing 5% return
(40% of a basket of dividend yield blue chips at 5% return is possible by an average investor)
6) $200K cash as liquidity earning compound interest rate at 1%
7) Medisave - additional source of fund
8) Residential home - Only as the last source of funding
You begin your yearly draw down from your CPF OA at 55, and after exhausting your CPF OA, then the draw down comes from liquidating stocks, and lastly the draw down comes from Cash fund.
It is enough to last you from 55 to 78. Cheers!