The office cubicles floor layout of the three old men.
The 60 is counting down to his voluntarily retirement in 69 days while 57 and 61 are facing with harsh reality of their current cash flow and net worth position and realized that they can't afford any voluntary retirement at 62.
They hope that their bosses will extend their re-employment to 67.
Many may think that these oldies in Uncle8888's generation got their HDB property cheap. Right? How come like that?
How come they can't afford to retire and their Future You "blame" or thank them?
Suffered Large Losses
Both 57 and 61 have lost heavily in their CPF Investment Account in AFC (1998). Who to blame? Blame the Government for not having the foresight to protect CPF members. Government only knew how to react and introduce CPFIS investable fund up to 35% of CPF OA balance. (Go to CPF website for clearer details)
57 learnt his extreme painful lesson and chopped finger and NO LONGER talk about stocks.
Still NEVER till Uncle8888's last conversation with him on Uncle8888's "passive" income from his stock investment portfolio.
61 learnt his painful lessons and stopped speculating. His regret was not learning short-term trading and long-term investing strategies earlier.
Residential Property as Retirement Fund
Both of them took the path of their residential property as their retirement fund.
57 stopped speculating in stocks and took the property path. He has upgraded from three room HDB to 5 room HDB and currently still have a few years of mortgage to go.
He couldn't meet his MSS (BRS) at age of 55 and automatically has to pledge 50% of his HDB flat to meet MSS (BRS).
61 bought 5 room HDB as he was already thinking ahead of property as good asset. He was fully convinced of his view after losing big in stock market during AFC.
Your Resident Home as Retirement Fund?
It is NOT as easy or straight forward as many would like to think!
When their retirement get nearer; their worries are getting real and bigger.
They can't partially withdraw their HDB asset to fund their yearly or monthly household expenses.
They cannot suka suka just sell or take partial profits. They have to carefully plan out their "Future" and NOT to repeat another fatal mistake!
Not stressful. Then what?