I'm 36 this year. Is 1mil enough for retirement at 60? This is for me alone, my wife will have her plans to reach her 1mil. Both do not include cpf. Any advice? - Seedly
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Asked 3w ago

I'm 36 this year. Is 1mil enough for retirement at 60? This is for me alone, my wife will have her plans to reach her 1mil. Both do not include cpf. Any advice?

Cpf will hit FRS to cover inflation. earning quite well now, aim to have 500k cash at 40. grow it at modest 4 to 5% p.a. and should have 1.3mil at 60 to retire fully. multiple insurances to cover various illness n hospital. at 40 will have luxury to choose my job/boss and work 3 to 5k job to cover expenses so the 500k savings will be untouched. my mthly expenses is less than 3k since my 20s and dont foresee to increase. married no kids + hdb almost paid off. I should be safe right?


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Hi anon,

Off the top of my head, you should be safe. You might want to just look at your planning with respect to income generating assets. Ultimately, if something does not provide an income for you, it's not really something you can rely on in retirement.

There are many income assets, while I won't cover them here, you should look at projecting your current expenditure pattern 25 years forward, factoring in inflation and possible lifestyle changes in retirement (some people want to go on multiple holidays a year in retirement, for example). Looking at the those expenses, compare that against your expected income from your assets, and you will know if you'll be ok.

$3K a month, inflating at 2% a year, will still be $4900/mth when you turn 60. The question is, will your expected income streams at 60 meet this requirement? If not, you'll have to dip into your cash reserves, and if so, how long will it take for your cash reserves to decline to zero?

Two broad types of income assets exist: Promised based and risk based. You have assets like CPF LIFE and private annuities in the first category, and stocks, REITs, bonds, etc in the second category. Aim for a good mix of both.


👍 3
Level 5. Genius
Answered 2w ago

Hey there.

If you are considering high-interest savings accounts, CIMB has recently announced today that they will be revising their interest rate for FastSaver. You might want to take a look here.

Other alternative choices that do not require spending/minimum sum include:

Singlife Account (2.5% p.a, capaital guaranteed, interest non guaranteed)

FSM Auto-Sweep Account (1.05%p.a, interest rates may be revised)

Stashaway Simple (1.9%, capital non guaranteed, interest non guaranteed)

SCB JumpStart (1%p.a, only for aged 18-26)

Crypto Earn (Depending on currency, as high as 16%p.a (CRO) without any prior staking. However, do take note of the volatility of cryptocurrencies. For higher interest rates, a fixed duration of 90 days is imposed before withdrawal can be made. Intetest is paid out every 7 days)

Crypto Exchange (20%p.a for CRO currency. Similar to Crypto Earn, just that fixed duration is set at 180 days. Interest is paid out daily)

Vivid Account (1.05% p.a for first 10k, 1.30% for 10k-20k)

Tiq 3 Year Endowment Plan (2.10%p.a, guaranteed)


👍 0

Hello! I'm 36 this year too.

I'm assuming you have SGD500K cash for investments that generate 4% returns? Take care to check if your 4% is rate of returns or annualised rate of returns. I made a mistake of calculating wrongly before.

You intend to try to maintain SGD3K monthly expenses which I would need your advice on how you can do it. Will be great if you can roughly share a breakdown of your expenses. I wonder if you do drive coz my car expenses is about SGD 1200 per month and i try to reduce by going JB to pump petrol and stuff. ​​​


👍 0
Tay WenHao
Tay WenHao
Top Contributor

Top Contributor (Jun)

Level 7. Grand Master
Answered 3w ago

If you have 1mil at age 60 and expenses at 3k per month. Yes it should be enough.

Assuming 4% p.a, every year the 'interest' will be 40k. Which is around 3.33k per month. Which means that you will be living off your interest every month and your capital of 1mil will be intact.

At age 40, if your liabilities are all taken care of, you can consider starting to max out your CPF to get the most out of the high interest SA. With SA Shielding, you can get 4% p.a on your funds with no risk and no lock in after age 55. This is one of the best way to maximise your returns with least risk.

However, this is assuming that after inflation, 20 years down the road you still spend 3k per month.


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Question Poster

3w ago

Yup thanks. that's why my FRS should cover the inflation part.
Tay WenHao
Tay WenHao

2w ago

Yup, if you include the CPF life payout after 60 should be quite safe. Just need to make sure that your 4% p.a. is stable and low risk.