48 and in a job rut, wondering if I have enough for frugal retirement/FIWOOT

[wira]

How much is TS salary? Is it hard to get similar one outside?

think he shared earning around $9K/mth

 

[Nofear40]

Seems that TS is looking to semi-retire. Question is: is $300k cash savings enough for 17 years before his annuity plans (and CPF life) kick in?

 

[BlackTortoise]

think he shared earning around $9K/mth

$9k high salary and frugal but saving only $300,000? So little.. thought should be $800k at least. Maybe he chiong ktv often. Joking..

 

[BBCWatcher]

Seems that TS is looking to semi-retire. Question is: is $300k cash savings enough for 17 years before his annuity plans (and CPF life) kick in?

No, with the following assumptions:

• 2.0%/year average interest on savings
• 3.0%/year average inflation
• $27,000 in annual drawdown (constant 2025 dollars)
• full retirement now (zero income from work)

With these assumptions $300K lasts less than 11 years. Moreover, the CPF LIFE income alone (at or near FRS) won’t be enough to hold this lifestyle constant. Which is one reason why fixing the wife’s lack of CPF savings is a high priority. There’s $300K+ currently getting dragged at only 2.5% interest.

If any of the assumptions change the results may change.

This couple (as described) is something of a textbook case for when both spouses’ SAs should be boosted. The wife‘s SA dollars could be earning 5.0%! And she might quality for some tax relief, too. The husband also has some room in his SA, and with some tax relief. CPF works beautifully in this sort of situation. All you’ve got to do is grab the opportunity.

 

[sgbird]

I think I would take a break and change to another less-stree job, with lower pay. Health always the 1st thing

 

[addict951]

@NutMan
I want to give you a very harsh dose of reality.

The truth is if you leave your job now without a job you must be prepared to be jobless for a very, very long time. This is from my observation of ppl around me who left their jobs whether voluntarily or involuntarily.

You MUST secure a job if you want to quit your current one. Becos even if you slash your asking pay down to $3K you are competing against those half your age. You’re on the wrong side of 40 hor.
Do not listen to those nonsense like quit your job now and look for a less stressful one. Less stressful jobs won’t be around long soon.
My suggestion is work till cannot and wait for package. I’m serious. Learn to ‘monetise’ your long service at your current job. Don’t let it go to waste.

My other question is with your current financial status: do you feel you are financially ready to retire? Are you ready to FIRE?

 

[hwmook]

@NutMan
I want to give you a very harsh dose of reality.

The truth is if you leave your job now without a job you must be prepared to be jobless for a very, very long time. This is from my observation of ppl around me who left their jobs whether voluntarily or involuntarily.

You MUST secure a job if you want to quit your current one. Becos even if you slash your asking pay down to $3K you are competing against those half your age. You’re on the wrong side of 40 hor.
Do not listen to those nonsense like quit your job now and look for a less stressful one. Less stressful jobs won’t be around long soon.
My suggestion is work till cannot and wait for package. I’m serious. Learn to ‘monetise’ your long service at your current job. Don’t let it go to waste.

My other question is with your current financial status: do you feel you are financially ready to retire? Are you ready to FIRE?

That's true, I also want a job with less stress. The fact is it really depends on your skill set, it's not so simple.

Work until you drop not a solution. My company got people waiting for package for a very long time, not much opportunities.

 

[qhong61]

@NutMan
I want to give you a very harsh dose of reality.

The truth is if you leave your job now without a job you must be prepared to be jobless for a very, very long time. This is from my observation of ppl around me who left their jobs whether voluntarily or involuntarily.

You MUST secure a job if you want to quit your current one. Becos even if you slash your asking pay down to $3K you are competing against those half your age. You’re on the wrong side of 40 hor.
Do not listen to those nonsense like quit your job now and look for a less stressful one. Less stressful jobs won’t be around long soon.
My suggestion is work till cannot and wait for package. I’m serious. Learn to ‘monetise’ your long service at your current job. Don’t let it go to waste.

My other question is with your current financial status: do you feel you are financially ready to retire? Are you ready to FIRE?

Also his son still young

 

[qhong61]

Seems that TS is looking to semi-retire. Question is: is $300k cash savings enough for 17 years before his annuity plans (and CPF life) kick in?

Of cos not enough

 

[wira]

i think everyone agreed and advice is $300K savings not enough for TS to stop work totally.
Best case is to find a less stressful job (with lower pay) but as @addict951 highlighted do plan and secure for the new job before quitting current one.


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[BBCWatcher]

May I also humbly point out that (unless instructed otherwise via a large lump sum withdrawal with a property pledge/charge, and assuming no further SA contributions) the CPF Board is going to move some of the husband’s OA dollars on his 55th birthday to his new RA. He’s currently about $39,000 shy of the FRS. He’s not collecting 1.5 percentage points of interest that he could easily be collecting on that $39,000. In Year 1 that‘s $585 of missing interest.

I can’t think of any reason why anyone would let this SA interest earning opportunity escape for even one more month in these particular circumstances. $8,000 of tax relief is an option, but even if you don’t like that idea, why would you leave $39,000 in OA in these circumstances?

 

[elloz123]

Ts imo it’s better to start finding a similar or better paying job.
Im not sure how u got 2.2k household expenses for a family of 3 in sg with eating out and travelling etc. inflation isn’t going to improve significantly in this climate imo.

 

[d9lives]

$9k high salary and frugal but saving only $300,000? So little.. thought should be $800k at least. Maybe he chiong ktv often. Joking..

I also think it's strange that he only has 300k in his late 48s.
Upon re-reading, I found out that 2.2k is his "basic" household expenditure.

He still has the non basic stuff ->
We're quite frugal, but still enjoy eating out at family restaurants during the weekends and public holidays.

HOH??? TS is balling and calls it frugal.

 

[BlackTortoise]

I also think it's strange that he only has 300k in his late 48s.
Upon re-reading, I found out that 2.2k is his "basic" household expenditure.

He still have the non basic stuff ->
We're quite frugal, but still enjoy eating out at family restaurants during the weekends and public holidays.
HOH???

smlj is family restaurants? low ses si bo? those saizeriya type? Confirm he cheongs ktv, lup sup massage, geylang $200/1/1, etc. $2.2k monthly household expenditures like high ses dinning, travel monthly, tution classes, etc.

 

[hwmook]

I also think it's strange that he only has 300k in his late 48s.
Upon re-reading, I found out that 2.2k is his "basic" household expenditure.

He still has the non basic stuff ->
We're quite frugal, but still enjoy eating out at family restaurants during the weekends and public holidays.

HOH??? TS is balling and calls it frugal.

He got $310k in OA so he probably paid his house in cash.

 

[DevilPlate]

I also think it's strange that he only has 300k in his late 48s.
Upon re-reading, I found out that 2.2k is his "basic" household expenditure.

He still has the non basic stuff ->
We're quite frugal, but still enjoy eating out at family restaurants during the weekends and public holidays.

HOH??? TS is balling and calls it frugal.

Not bad liao leh got 300k cash at 48yo.

I know of people with less than 100k in their 60s.

Solely depend on their FRS CPF payout upon retirement.

 

[d9lives]

He got $310k in OA so he probably paid his house in cash.

Not bad liao leh got 300k cash at 48yo.

I know of people with less than 100k in their 60s.

Solely depend on their FRS CPF payout upon retirement.

I see. Dunno man.
It still seems too low.
300k by 48y with 3 mouths to feed.....I'd have a massive anxiety attack.

 

[havetheveryfun]

Instead of thinking of quitting, why not try to talk to your superiors on the possibility of taking a 3-6 month sabbatical first to think properly, or talk to them on the possibility of reducing your amount of responsibilities (with an appropriate pay cut of course)?

 

[Spike]

Can consider applying for a full time poly course, and Skills future allowance next year. With $3K monthly for 2-years, can sustain you for sometime while hopefully, give you some chance of a career switch.

 

[chong18]

Of course not enough, even for single person $300k is not enough let alone family. And monthly basic expenditure only $2.2k? How is that possible in SG? Unless TS has passive income to sustain and no need to touch the $300k until 65yo.