Would you agree that if we factor in inflation, 1M65 may not be sufficient for those who are younger to retire?

Historically, inflation in Singapore has always been very low, so the purchasing power of 1M dollars will still be pretty strong. I think the concern is for those with much less than that, which is the vast majority of people who cannot even hit 1M65.

Yes depending on your lifestyle, 1M may not be enough, but....hey, the vast majority of Singapore wont even have 1M at retirement.

Hi Anon,

If I understand correctly, you are asking whether will $1 million be sufficient for someone who wants to retire before age 65, especially if we account for inflation?

You are right in the sense that the (nominal) amount we need to retire will increases if we factor in an earlier retirement age and inflation. Especially inflation, since it does not stop just because we stop working.

To be clear, the formula for 1M65 itself does not account for the sum required for retirement, which depends on a host of other factors such as desired monthly payout in retirement, number of years in retirement, etc.

In order to calculate the amount that is sufficient for retirement, there will be some questions that you need to answer for yourself (or your family) so that you can be sure that what you are planning today will be sufficient for your future.