How Long Will My Retirement Funds Last Calculator

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How Long Will My Retirement Funds Last Calculator – ), you have sent questions. In this article, I delve deeper into my goal of earning $5,000 per month in retirement from CPF alone and the steps I am taking to achieve this.

Let’s start with a quick fact – in retirement, most of us have expenses to pay. I have categorized them as follows.

How Long Will My Retirement Funds Last Calculator

How Long Will My Retirement Funds Last Calculator

How much we need to retire depends on how much we spend. If you ask me, the best solution is to plan for expected living expenses (my needs) and travel expenses (my needs) while I take the unexpected expenses from insurance or risk financing.

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To cover my living expenses, I look at my retirement savings account, which is my CPF account, which can cover and use my fixed living expenses.

I have calculated in this blog how much my desired retirement life (for a single 20 year period) will pay me when I reach the age of 65, and it comes to between S$1,800 and S$3,000.

After that, everything changed. Inflation has increased and so has my rent – I now spend more on food and spend more on beauty services and beauty products.

You may have noticed that I have not only increased the number of each item, but also added a new feature.

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When I’m 60, my kids will be in their 30s, and they’ll probably work longer, so I don’t have to worry about putting money away for college and scholarships during retirement.

Note: If you need financial support for your children’s education during the holidays, consider this in your financial planning!

Of course, if money isn’t an issue, I enjoy traveling and exploring the world in my retirement years. Ideally, my journey would be:

How Long Will My Retirement Funds Last Calculator

I remember that this plan was “cool” and cost more over time. If I need to be more careful in the future, this is the part I will look at.

Early Retirement Decision With Stack Of Money On The Table Near Calculator And Alarm Clock Stock Photo

Based on these calculations, if I want to enjoy this lifestyle (i.e. 5 trips abroad per year), I need to earn at least S$4,200 per month in the holiday. That’s based on today’s dollars, assuming 2% annual growth from now until I’m 65, which means I’ll have about $8,000 a month in retirement.

What if I take that out of the equation and use $2,900 for my estimated living expenses?

To answer this question, let me tell you if you are on track with the CPF Planner – Retirement Income (“CPF Planner”).

I put $2,900 (in today’s dollars) into my calculator and adjusted for inflation it came out to $5,580. I was told that I needed to work on my savings goal to reach my salary goal. $1,152,000.

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Side tip: If you’re not sure how much you need, you can calculate it by clicking on the Retirement Income Guide (see image below). Help you choose your retirement lifestyle.

I then put in my expected working income (from now until age 65) so that the calculator can calculate if my CPF contribution will be enough to reach my goal.

I used $5,000 as a benchmark and that’s what I drew for my last job. I never got a bonus in my career (yes, not 13

How Long Will My Retirement Funds Last Calculator

Monthly bonus), I hope my lucky stars will help me find a future boss who will give me a bonus of S$3,000 every year… (eg a lateral move).

Retirement Savings Calculator

I’m hoping for a 2% annual increase in line with pre-inflation rates, but in reality, I’ll get a raise when I move to another company.

Fortunately, CPF Planner predicts that I will be able to meet my salary goals, based on my current CPF balance.

For those interested, today (2023) I have 90% of my pension in my separate account.

Yes, but what if I include my travel preferences in this calculation?

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At S$4,200 per month (in today’s dollars), the calculator says my CPF savings is not enough to support the retirement lifestyle I want.

From here, we as CPF planners decide to take steps related to it, for example, we decide to transfer money from our Ordinary Account (OA) to our Special Account (SA) or we can model such a scenario. Cashback through the Senior Retirement Scheme (RSTU).

Side note: Since I’m in my 20s, I can’t transfer money to SA, so I have very little money in my OA (my saving is mostly liquid, i.e. enough to pay my mortgage for 12 months) . For me, setting aside all the assets for my retirement plan is not going to do much, so I have to pay.

How Long Will My Retirement Funds Last Calculator

Note that recording of estimates is subject to transfer limits. If you have a high income and/or will be earning close to your current FRS (like me), the $8,000 per year cash payment may not be fully achievable.

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So, if I continue with my current routine of adding S$8,000 per year, it will not get me any closer to funding my desire to travel 5 times a year. I have to change my thoughts from other sources of vacation income or finance my travel.

So the CPF planner clearly says that although my current CPF savings is sufficient for my retirement needs, it is not enough to fully cover the amount of travel I intend to do during retirement. And my CPF.

That’s why I’m working hard to create a new source of retirement income – check out my blog for more details on how.

By using a CPF plan, I can rest easy knowing that I will have enough CPF savings to cover my fixed expenses in my retirement years.

Savings Withdrawal Calculator (2023)

But if I plan to pay for my 5 trips a year with my CPF money, it will be too much. For this amount of travel, my current CPF savings is not enough to fund the travel lifestyle I want in my retirement years. Even if I manually raise S$8,000 every year, it is not enough.

The employer proposes to use my personal account as part of the balanced retirement account, which I fully accept.

I think these instruments will play with inflation in the near future, since the increase has been above 2% for almost 2 years now.

How Long Will My Retirement Funds Last Calculator

After all, as a salaried Singaporean, your CPF is your first, if not your most important, retirement asset. It’s a good idea to top up your CPF for the highest return (e.g. temporary top-up, transfer money from your regular account to your special account) and make your chosen payments to meet your retirement goals .

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How Long Will My Retirement Funds Last Calculator

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