SINGAPORE: Ninety-one per cent of Singaporeans do not feel well-prepared for retirement compared to the global average of 87 per cent, according to an annual report by Oxford University's Institute of Ageing on Wednesday.
It is enough to last you from 55 to 78. Cheers!
It is suggested that the low level of preparedness is linked to the lack of access to financial advice. Although Singapore has a wide range of retirement products available, the report said more could be done to educate families to plan for the long term.
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Some ideas for retirement planning ..
You may be able to retire with $1M Retirement Fund at 55 if your yearly expenses is at 4% of your retirement fund i.e $40K with the following assumptions as follows:
1) Inflation rate at 3%.
2) CPF Life providing yearly income at $12K (assuming minimum sum)
3) CPF OA balance at $300K to earn compound rate at 2.5%
4) $500K to invest in stocks with success rate at 40% of $500K providing 5% return
5) $200K cash as liquidity earning compound rate at 1%
You begin your yearly draw down from your CPF OA, and after exhausting your CPF OA, then the draw down comes from liquidating stocks, and lastly draw down comes from Cash fund.
It is enough to last you from 55 to 78. Cheers!
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