How much is enough for retirement in Singapore?

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.
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How much is enough for retirement in Singapore?

S$500K+
36
19%
S$1M to S$2M+
100
52%
S$3M to S$5M
36
19%
S$5M or more
20
10%
 
Total votes: 192

starlight1968sg
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Re: How much is enough for retirement in Singapore?

Post by starlight1968sg » Wed Jul 17, 2019 7:29 pm

I also tell dd that once she starts working, she has to pay 'income tax' to me.
I expect min $300 per month; accommodation and meals etc easily $10 per day...

MyPillow
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Re: How much is enough for retirement in Singapore?

Post by MyPillow » Wed Jul 17, 2019 7:38 pm

starlight1968sg wrote:
Wed Jul 17, 2019 7:29 pm
I also tell dd that once she starts working, she has to pay 'income tax' to me.
I expect min $300 per month; accommodation and meals etc easily $10 per day...
Since I graduated- I was giving $500 to my parents- $300 allowance n $200 tuition fee loan . - tat was quite a lot during our time And I m still giving till now, expectation of my parents era. I dun see my parents giving their parents regularly lei ... can’t afford then
But if my kids are saving up to finance their own house / wedding / future education - etc then I think I no need their $
But I can help kids to safe keep for rainy days ;)

starlight1968sg
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Re: How much is enough for retirement in Singapore?

Post by starlight1968sg » Wed Jul 17, 2019 7:45 pm

With allowance from kid(s), cpf life, SRS, savings, rental income (if any), shld be a neat sum for retirement.

tyeogh
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Re: How much is enough for retirement in Singapore?

Post by tyeogh » Thu Jul 18, 2019 1:07 am

I too intend to make my kids to give me money when they work. More of training filial piety than financial. They will feel they have discharged their duties to us parents. Plan to give all back to them by way of paying for their wedding, housing etc.

That said, i do not want to rely on them for income. I think we are fear mongered to think we need alot for retirement; we don't actually. It is probably the biggest mistake Singaporeans make - to over size our retirement needs and in the process stress ourselves unnecessarily.

Let's say a couple works. Both should achieve FRS at 55. You will find the 4% compound interest kicking-in in your late 40s to boost the principal. FRS is not unachievable.

The FRS payout is $1.4k. Per couple, its $2.8k.

Bear in mind one still has to work from 55 to 65. By 55, the home mortgage should ady be paid. One's OA will start to grow, and grow at 4% when it is transferred to RA.

I did the maths. $4-5k from CPF alone (CPF Life and RA interest) is not out of reach. One need not have an investment property. If you do, kudos to you. Of course, it is also good to have some spare cash apart from our CPF to pay for broken water heaters :laugh:

tyeogh
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Re: How much is enough for retirement in Singapore?

Post by tyeogh » Thu Jul 18, 2019 1:25 am

Btw I did a study on BRS FRS ERS and concluded the BRS gives the best bang for the buck. Any excess over BRS gets transferred into RA which earns a respectable 4% interest. A BRS + RA choice merely loses to FRS ERS by $100+ monthly. BUT the big advantage BRS has is the principal is intact. This principal can be used for a rainy day. Whereas if you choose FRS ERS, the principle is gone at 55 buying the FRS ERS


Cloud Cloud
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Re: How much is enough for retirement in Singapore?

Post by Cloud Cloud » Thu Jul 18, 2019 6:54 am

tyeogh wrote:
Thu Jul 18, 2019 1:25 am
Btw I did a study on BRS FRS ERS and concluded the BRS gives the best bang for the buck. Any excess over BRS gets transferred into RA which earns a respectable 4% interest. A BRS + RA choice merely loses to FRS ERS by $100+ monthly. BUT the big advantage BRS has is the principal is intact. This principal can be used for a rainy day. Whereas if you choose FRS ERS, the principle is gone at 55 buying the FRS ERS
Is there a cap on the amount in the RA?

Cloud Cloud
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Re: How much is enough for retirement in Singapore?

Post by Cloud Cloud » Thu Jul 18, 2019 7:26 am

At least for myself, need $1400 a month for 2 pax

$600 for meals ($10 a day for 2 pax)
$150 for phone and internet
$100 for utilities
$150 for groceries
$150 for transport
$50 for medical (see GP for small illness)
$200 for entertainment

Imp75
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Re: How much is enough for retirement in Singapore?

Post by Imp75 » Thu Jul 18, 2019 8:13 am

tyeogh wrote:
Thu Jul 18, 2019 1:07 am
I too intend to make my kids to give me money when they work. More of training filial piety than financial. They will feel they have discharged their duties to us parents. Plan to give all back to them by way of paying for their wedding, housing etc.

That said, i do not want to rely on them for income. I think we are fear mongered to think we need alot for retirement; we don't actually. It is probably the biggest mistake Singaporeans make - to over size our retirement needs and in the process stress ourselves unnecessarily.
Hahaha parents’ love for own children. I hold a different view though. Even though my kids are quite privileged, I always tell them we don’t have money so they have to learn to spend within their means. Every week I give each of them $50. Not enough they top up themselves with their hb money, let them feel the pinch. Sch holiday I tend to give more cos more outings etc but again not enough, dig your own money, used up then too bad.

Buying house etc next time is their own business. Cannot afford then live within their means. Wanna live well then work hard, no free lunch from parents. Parents are not their lifeline, they must learn to step out of their comfort zone.

Nebbermind
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Re: How much is enough for retirement in Singapore?

Post by Nebbermind » Thu Jul 18, 2019 8:35 am

tyeogh wrote:
Wed Jul 17, 2019 6:19 pm
I think the $1,319 is hyperbole. So is the $2m.

$1,500 for a single person is tough. $3k for a couple should be alright. Some expenses can be shared. You can have my facial budget :wink:
I would assume the $1319 probably arrived from data collected from people around the median of the 80% living in HDB. They donch really care about people living in private prop, do they?

Nebbermind
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Re: How much is enough for retirement in Singapore?

Post by Nebbermind » Thu Jul 18, 2019 8:46 am

Imp75 wrote:
Thu Jul 18, 2019 8:13 am
tyeogh wrote:
Thu Jul 18, 2019 1:07 am
I too intend to make my kids to give me money when they work. More of training filial piety than financial. They will feel they have discharged their duties to us parents. Plan to give all back to them by way of paying for their wedding, housing etc.

That said, i do not want to rely on them for income. I think we are fear mongered to think we need alot for retirement; we don't actually. It is probably the biggest mistake Singaporeans make - to over size our retirement needs and in the process stress ourselves unnecessarily.
Hahaha parents’ love for own children. I hold a different view though. Even though my kids are quite privileged, I always tell them we don’t have money so they have to learn to spend within their means. Every week I give each of them $50. Not enough they top up themselves with their hb money, let them feel the pinch. Sch holiday I tend to give more cos more outings etc but again not enough, dig your own money, used up then too bad.

Buying house etc next time is their own business. Cannot afford then live within their means. Wanna live well then work hard, no free lunch from parents. Parents are not their lifeline, they must learn to step out of their comfort zone.
I think most of us here in this discussion donch really need the money from our kids. But I, too, believe in getting them to contribute to the household...they cannot be freeloaders and take for granted all the 'amenities' we are providing...lodging, housekeeping, laundry, wifi, meals etc...if they live outside, they will not be just paying a few hundreds for all these. The main intent is to make them aware that everything comes at a cost...and to help them save up, provided we don't need to touch it before we leave.

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