I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down

Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Saturday 22 August 2020

Retiring in Comfort in Singapore - Replacement Income

Read? Retiring in Comfort - An SGX and Oliver Wyman paper on retirement savings

Singaporeans face a retirement challenge – how to ensure a desirable lifestyle post retirement
without overreliance on external sources. Historically, many retired Singaporeans have relied on
their children as the main source of financial support. However, shifting demographics due to
increases in life expectancy and low birth rates put limitations on the extent to which this model is
sustainable. It is therefore paramount that Singaporeans can adequately plan, save and invest for

The CPF plays a central role in addressing this challenge and has established a mandatory
retirement saving scheme for Singaporeans, bringing together employers and employees to
contribute up to 36% of income into the scheme for retirement, housing and healthcare purposes.

According to the analysis used in this paper, the average Singaporean in full time employment
today can expect an income replacement ratio (expected post retirement income vs. pre-retirement income) of around 68%. This is within the range recommended by the World Bank and comparable to those seen in OECD countries. However, some Singaporeans may aspire to a higher replacement ratio. This can be achieved through both increasing savings rates and/or targeting
higher rates of return on these savings.

Case study of Uncle8888's Replacement Income vs Average Singaporean of 68%

Yearly Household Expenses

Read? Historical Lowest Annual Household Expenses Was Bad For Health Or Life Threatening Environment!!!

Replacement Income : CPF, Investment Income and Mini freelance income (Ad hoc)

Average replacement income over 4 years = 66%

Average pre-retirement yearly household expenses since 2002 = 58%

Average post-retirement yearly household expenses over 4 years = 54%

No comments:

Post a Comment

Related Posts with Thumbnails