facebookI’m currently working (6k/m) and having a unit on rental (2.7k/m) but have an outstanding bank housing loan of 268k (13y x 1.8k/m). What should I (single,41) do if I want to retire in 3 y time? - Seedly

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Anonymous

13 Oct 2020

Retirement

I’m currently working (6k/m) and having a unit on rental (2.7k/m) but have an outstanding bank housing loan of 268k (13y x 1.8k/m). What should I (single,41) do if I want to retire in 3 y time?

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Jiayee

13 Oct 2020

Salaryman at some company

Some actions to take before retiring:

  1. Plan how you intend to spend your retirement happily.

  2. Know your number of years. There is CPF LIFE but I'm sure you want to still have some extra cash even when you are much older. Do a subtraction of your age from the life expectancy of a Singaporean.

  3. Know your monthly expenses. You need to stick to it strictly so that you never run out of $$ so you should either base this number off your current monthly expenses or overestimate your projected expenses (with the appropriate breakdowns like food, transport, etc). If you plan to spend more during retirement, do the necessary calculations.

  4. Know your potential rainy days and be prepared for them. You need sufficient insurance coverage so that your funds do not get unexpectedly emptied by emergencies.

  5. Any dependents e.g. parents and/or siblings? Take their expenses into account where appropriate and/or necessary. Ensure that they are sufficiently insured too.

  6. Calculate (2) by taking into account your bank loan. Also, please feel free to overestimate your bank loan interests so that nothing will take you by surprise.

  7. Depending on what/where your rental unit is, you can be certain or uncertain about the tenancy. Be aware of the rental market and gauge the desirability of your unit. I am not sure if this $2,700/month should be counted as long-term income. Maybe underestimate it so that low rental prices will not hurt your plans.

  8. Excess CPF balances can be counted as a retirement "income".

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