there are a few points that i want to raise. this is an ocbc advertisement. it is skewed towards buying a retirement plan from them.
1. you do not need a 1.3 mil. it is much less. at ers (240k), you will be getting 2k when you retire in 10 years time. i agree that i did not take into account inflation.
2. why ah pek or ah mah need 3k a month? a fresh grad with starting pay of 3.8k will has a take home of 3k per month. diploma holder usually less. if these people can survive, why old folks need so much money. yeah, if you want to travel around the world every year, drive sports car, be old cow eat fresh grass, of course 3k may not be enough. old folks should learn to moderate their expenses especially if they have no more income.
3. 1.3 mil may seem like a lot of money now. with inflation, this sum may not look so big in the future. eg when i was in the army, mom bought a 100k insurance for me. wah 100k ah! so much money man! i only have 3k in my bank account then. today when i look at that 100k, i will say ok loh, not bad loh. most of us, income will increase over time. by that time 1.3 mil may not be so big compared to our income.
4. a professional working for 20 years will have 500k in the oa+sa. many sg people use cpf to pay for their homes. many will not have much in the oa.
there are points which i like. eg you better start planning now
U have to read articles with an open mind. U have misinterpreted the article as I read it.
The title : “Need $1.3m to retire? Depends how you live”
There is a ?, implying answer is NO based on the second sentence after it!
Then u must read the most important message in the article, extracted below:
“Guess what? As people grow older, many things that will make them happy don't cost a lot. “
Then go read all the examples explained in the article.
Then I purposely quoted the last para in my previous post, a summary of the above:
“Finally people should view retirement as not the end but the beginning of another life adventure. And money, while important in this journey, is not everything. After all, the happiest people don't have the best of everything, they just make the best of everything they have. “
Use the above to help u review 3 the CPF Life Plans. Do I need an escalating plan? No, a Basic CPF Life Plan is good enough to make me happy as many things don't cost a lot! I might not have the best (increasing payout by 2% in later years), I know how to make the best of everything I have, ie more payout in my earlier years, might decrease in later years but I know how to keep it constant, etc and do not rely entirely on CPF Life payouts alone for my retirement.
There is a similar message in the other Good article I shared. Do u need me to help u decipher the key message?
