Calculate how much do we need to retire
Calculate how much do we need to retire through 2 expenses
In the previous post, I mentioned how much do we need to retire Singapore. In term of expenses, we are actually classified them into two main kinds. These two main kinds of expenses what you can expect to spend during your retirement living the lifestyle you dream of. Retirement planning Singapore may sound confusing at times especially you have no idea on how to start planning for one.
In this section, we list out content that can help you know more about retirement planning
- How retirement blueprint helps one of my clients retire 5 years earlier than expected
- How to plan for retirement in Singapore ( 3 things you can’t do without)
- Retirement Planning: Tips On Making Full Use Of Your CPF
- Smart Retirement Planning Tips
- Retirement Planning Singapore: CPF LIFE (3 Things To Know)
#1 Lifestyle expenses
The lifestyle expenses are expenses that you need to have in order to survive. These are the expenses which are mainly talked about the previous time which are your:
These 3 expenses under the lifestyle expenses will be the “minimum spending” when it comes to your retirement planning as they are the things you will need to spend in order to live.
#2 Lifestyle expenses
This is the part where things can get exciting! Going to travel to places to your dream places! Bringing your family for vacation during your kids’ holiday or even eating at restaurants to enjoy the nice foods. For this kind of expenses, it really varies as it can only be determined by the kind of lifestyle that you want to have.
Boredom could be the biggest challenge in retirement, especially if you have been a very hard worker before retirement. What do you do when you are bored especially at the start of your retirement. Does your retirement blueprint include all these expenses?
Calculate how much we need to retire
After deciding the lifestyle and living expenses that you need to spend during your retirement. You will be able to calculate the amount that you need to retire based on your retirement age and how long you expect to live till ( An assumption needs to be made for this)
That’s right. That will be the size of retirement funds that you need to have before you can retire. The question is do you know where you are currently and where you want to be when you retire? Then you will know your shortfall and you can work towards it.
This is one way on how to plan for retirement in Singapore as the cost of living has been rising. We need to factor in all the expenses that we need to spend.