What annual income is considered enough (retirement planning) for a family to become single income?

Hi FAs or those in same circumstances,

32y.o. couple with 2 young kids below 5.
House being paid by CPF income.
All term insurance and adequately covered.
Current income: Gross 70k+65k per annum.
Will be 70k if it's single income.

TIA! Cash Expenses:50-55k per annum Savings+Portfolio:$200k?

Can we transit to single income now? What is the rough income of your clients in similar situations?

I'm not an FA, but do I see a lot of people asking, "How much is enough?" or "Is it enough if I have..." sort of questions. It's natural to ask these sort of questions, but it's also a bit pointless because ultimately, nobody is in your shoes except you.

In short, I don't think anyone can provide an answer that completely accounts for your situation. You really need to assess your circumstances and ask if you are okay to take a massive pay cut as a couple. There isn't any right or wrong to this.

But it will be a massive pay cut.

On paper, a $70k gross income works out to just about $56k take home. If you included income tax in your annual expenses, that means you spend just about every single cent you make (based on $55k annual expenses).

This is not a number that most financial planners will tell you is okay. In fact, I don't think anyone here will encourage you to basically "spend as much as you earn". But ultimately, ask yourself: are you comfortable with that? If you are, then by all means, go ahead.