Many people have thought of retiring at the age of 65 and enjoying life after working for almost 20 years after they graduate and find their first job. But due to the high living standards of Singapore, is our dream retirement plan achievable?
I am always fascinated about finance from young and would always like to know about how the typical retirement plan works. Now that i am enrolled in SIM and have learnt to calculate some financial stuff using the calculator, i wish to present a classical example to show everyone.
Retirement Plan - Retire (stop working) at age 65 and life expectancy of 80 years old
Let's assume that you are now retired (65 yrs) and predict you will live to 80 yrs old.
You only are living an average lifestyle with a car and house already paid for.
And the expenses are all that you are paying for yourself w/o your spouse or sharing with him/her.
Mobile Phone $50
Car Maintenance $800
Daily Necessities $250