S’poreans’ retirement funds enough for only 13 years: DBS survey

[Temperament]

REITs dont last forever. Will kenna property cycle & interest rate hikes. Then have to recap or face dilution. Thats I said low gearing (<20%) REITs, if any. Have to time entry into REITs.

Exactly, you cannot rely on Reits to retire, but if you have 1 million CASH and without any liabilities (like, housing instalment, children uni-education, car loan, mistress, hehe, etc.) Technically speaking you can anytime retire liao
In-addition, a fully paid HDB and 3 private properties to collect rent, better still. Also dun ever expect to rely on your children insist be prepared to fork out cash down-payment for their new house.

I think Temperament san belong to this ideal financial health:

Cash : 1 million in FD@ 1% = $850/mth (waiting for market to crash)
Stock: 250 k @4% = $850/mth (blue chip counter)
Rental @ 2.5% - 3% = ???
Bond/Preference share/STI index fund: 150k @3% = $375/mth
CPF OA/SA/RA : 250k @3.5% = $730/mth
But still working part-time say with allowance = $2,000/mth

If dun work very boring, unless very stressful or health reason then it different story.

Mine you with all this income, your Capital is left untouched, all you have to do is to think how to preserve your existing capital.
Assuming healthcare cover by IP from your medi-save.

Ai'yoh Koh San,
不 要 害 我 lay,
知 足 者 常 乐

And never, never forget, though we are afraid of dying penniless, we must also remember “生 不 带 来， 死 不 带 去。“

[Porkbelly]

Hi gzbkel

We can only do so much to prepare finances for retirement. What is known should be calculated first, and these should be prioritsed accordingly based on needs vesus wants.

Advances in medical treatment may cost more yet it can also cost less. Open heart surgery in the 1970s cost more than US$200,000. But now it cost less than US$100,000 and its been done almost anyway in the world.

Hi flinger

Utilities costs the same for 1 or 2 people.. if you leave the aircon running 24/7 The amount of $300 is a high estimate for a HDB flat. In most cases it should be below $200.

Cost of holidays is based 2 pax, that is $700 for 2 people per month... ( girlfriend , wife, chump..no fun travelling alone, so I have to pay if I want them along...)

These numbers are dependant on what one values as high priority... the car can go if you dont see a need for it or the holidays for that matter. As for toothpaste, clothes, soap.. any excess from the other items will cover these costs... clothing for older folks is quiet standard.. I dont see a high propbablity in wearing Prada or Zegna suits.

[chialc]

Cost of holidays is based 2 pax, that is $700 for 2 people per month... ( girlfriend , wife, chump..no fun travelling alone, so I have to pay if I want them along...)

Hi Porkbelly,
I'm a season traveler and I'm warm too.

Looking for like-minded people to travel anytime when you're ready:


Love Compassion

[Porkbelly]

Hello chialc

Ha! Ha!.. am sure you are warm ( from all your posts about life and touring!)

Will keep you in mind for future travels!

[Temperament]

My CPF LIFE's monthly payment has increased by $10.49 from 01 JULY 2014. How about yours?
But i understand it can also decrease; depending on the pool of money available. In fact, there is even no guarantee of a minimum pay out per month.
So in this sense it is inferior to if you keep your RA as MS payout for those who can choose. In fact my wife chooses not to join CPF LIFE till now. I think most probably she will not join CPF LIFE at all because MS payout is more attractive.

[NTL]

My CPF LIFE's monthly payment has increased by $10.49 from 01 JULY 2014. How about yours?
But i understand it can also decrease; depending on the pool of money available. In fact, there is even no guarantee of a minimum pay out per month.
So in this sense it is inferior to if you keep your RA as MS payout for those who can choose. In fact my wife chooses not to join CPF LIFE till now. I think most probably she will not join CPF LIFE at all because MS payout is more attractive.

MS payout only last for around 20yrs or so? When she outlast the payout period, she may think otherwise then?

I always prefer annuity plans like CPF Life, over drawdown plans like MS Scheme. I will like my money to outlast me, and not the other way.

[Temperament]

My CPF LIFE's monthly payment has increased by $10.49 from 01 JULY 2014. How about yours?
But i understand it can also decrease; depending on the pool of money available. In fact, there is even no guarantee of a minimum pay out per month.
So in this sense it is inferior to if you keep your RA as MS payout for those who can choose. In fact my wife chooses not to join CPF LIFE till now. I think most probably she will not join CPF LIFE at all because MS payout is more attractive.

MS payout only last for around 20yrs or so? When she outlast the payout period, she may think otherwise then?

I always prefer annuity plans like CPF Life, over drawdown plans like MS Scheme. I will like my money to outlast me, and not the other way.

You are right the main purpose of an annuity is exactly what you said.
For my case it seems quite O. K. (beneficial) to join the CPF LIFE. In the beginning it was not O. K. until i reach 65.

But my wife is fortunate enough she can delay her MS drawdown as long as possible while enjoying the 4% P/A interest rate now. Yet still can opt to join the CPF life later as long as she doesn't pass her 80th birthday, i think. (If God permits). But most unlikely because of there not much bequest value if she joins.

We are fortunate we can treat her MS as kind of Reserved or Emergency DD fund for living expenses in case we needed too.
Everyone of us will manage our financial situations to extract the maximum if not at the as optimal value as possible.

[chialc88]

blessed and bliss.
from nothing we had arrived to current stage.

have a happy and nice weekend.

Love Compassion


Earth day - save the world everyday.

[NTL]

My CPF LIFE's monthly payment has increased by $10.49 from 01 JULY 2014. How about yours?
But i understand it can also decrease; depending on the pool of money available. In fact, there is even no guarantee of a minimum pay out per month.
So in this sense it is inferior to if you keep your RA as MS payout for those who can choose. In fact my wife chooses not to join CPF LIFE till now. I think most probably she will not join CPF LIFE at all because MS payout is more attractive.

MS payout only last for around 20yrs or so? When she outlast the payout period, she may think otherwise then?

I always prefer annuity plans like CPF Life, over drawdown plans like MS Scheme. I will like my money to outlast me, and not the other way.

You are right the main purpose of an annuity is exactly what you said.
For my case it seems quite O. K. (beneficial) to join the CPF LIFE. In the beginning it was not O. K. until i reach 65.

But my wife is fortunate enough she can delay her MS drawdown as long as possible while enjoying the 4% P/A interest rate now. Yet still can opt to join the CPF life later as long as she doesn't pass her 80th birthday, i think. (If God permits). But most unlikely because of there not much bequest value if she joins.

We are fortunate we can treat her MS as kind of Reserved or Emergency DD fund for living expenses in case we needed too.
Everyone of us will manage our financial situations to extract the maximum if not at the as optimal value as possible.

I am more of the typical KiaSi type. Most of time, I rather go for a lower return and get a peace of mind, than taking the risk and extract the maximum possible return. For that reason, I am diverting a good part of my cash into annuities, endowments and bonds, than putting most into equities or stocks.

So yes, everyone of us will manage our finance differently.

[greengiraffe]

http://www.cnbc.com/id/102104620?trknav=...:topnews:4

Despite wealth, Singaporeans worry about retirement
Written by Katie Holliday and Nur Atiqah M. Hatta

Elderly people gather to play a checkers game next to their housing area in Singapore on January 2, 2013.
ROSLAN RAHMAN | AFP | Getty Images

Elderly people gather to play a checkers game next to their housing area in Singapore on January 2, 2013.
For 45-year old Singaporean civil servant Muru Nagaraju, saving for retirement is a major concern.

"It's certainly one of my biggest worries. I'm lucky because at the end of the month I do have enough to save and I do have some alternative income in terms of shares etc," he said.

"But not many people can do that. The average Singaporean makes only so much money and there's not enough to even think about saving," he added.

Anxiety over retirement is not uncommon in Asia, where the absence of state welfare means most people are left to fend for themselves in their golden years.

Read MoreSingapore Q3 GDP misses forecasts

It's a concern that dominates even in the wealthy state of Singapore. A study by insurance group AIA published this week found that residents in the city are the most concerned about the issue compared to other Southeast Asia nations.

A total of 55 percent of the 500 Singaporeans surveyed by AIA said they were worried they would not be able to save enough, compared to a regional average of 44 percent. Furthermore, 35 percent of Singaporean respondents ranked saving for retirement as the most difficult goal to achieve in life.

Living in a city which ranks among the world's most expensive cities to live, Singaporean respondents in the survey said they need $898,330 to fund their retirement years, the highest sum amongst the five other countries profiled.

The cheapest place to retire was Indonesia at $181,610, followed by the Philippines at $207,610, Thailand at $233,960, $493,100 in Vietnam and $583,380 in Malaysia.

Nagaraju told CNBC he would like to live on a "comfortable" monthly income of around S$5,500 ($4335) when he retires at 65, which means he would need to save around S$990,000 beforehand. The father of two also said he expected his children to help him when he leaves the workforce.

Read MoreWhich 10 states are the least prepared for retirement?

"I come from a family where filial piety [respect for parents] is very important and I do expect my children to look after me, not just financially but emotionally," added Nagaraju.

Family ties

The expectation for future generations to look after their parents in old age was echoed by the survey's findings.

Singaporeans felt particularly strongly on the issue, with 76 percent agreeing, while just over half of the Philippine respondents agreed. A total of 65 percent of the Singaporeans surveyed by AIA were already supporting their parents.

So it comes as no surprise that for Singaporeans with no dependents, like restaurant worker Ms. Teo who is in her late 40s, financing retirement is particularly worrisome.

"I'm not married so I will have to take care of myself. Both my parents have passed away so it's just me. I don't think I will stop working anytime soon," she said.

Read MoreSeniors not ready for high health costs: Study
But for 67-year old hawker stall worker Doris Lim, retirement does not concern her even though she has little savings.

"I don't think I will stop working anytime soon. I have been running this business for 31 years and I am still strong and healthy," she said.

"Whether my children will help me with my retirement… I don't know. It all depends. They have their own concerns and worries – their house, their children. So if they think they can help me with it, then okay. If not, it really does not matter to me," Lim added.

AIA spoke to 3,000 respondents across six ASEAN nations: Singapore, Indonesia, Malaysia, Thailand, the Philippines and Vietnam, and focused on the region's middle class.