Retiring before 40?

[blue_line]

The “fun” part about retiring early is that, if the math doesn’t work, it won’t work starting several years from now. This experiment won’t finish up until you’ve left this earthly plane, and you won’t be around to report back in this forum how it all went.

There really are people who outlive their wealth. It is an actual problem. Whenever you retire, get some quality, inflation-adjusted, lifetime longevity insurance in place to provide a strong financial floor.

If someone retires in the normal retirement age, say 60-65, won't CPF Life payout already be the strong financial floor for most Singaporeans.

Would an annuity still make sense in this case?

 

[highsulphur]

If someone retires in thenormal retirement age, say 60-65, won't CPF Life payout already be thestrong financial floor for most Singaporeans.

Would an annuity still make sense in this case?

Cpf life forms the foundation. I won't consider it a 'strong floor'

 

[starlight318]

Cpf life forms the foundation. I won't consider it a 'strong floor'

Yes cpf life payouts only sufficient for bare essentials. Can only eat home cooked food, hawker food and maybe once in a month restaurant dining. After paying for groceries, insurance, utilities, transport,mobile n broadband subscription, there will be nothing left. Maybe not even enough to see doctor at the clinic unless u go to the polyclinic.

Far from 'strong floor' I agree

 

[JuniorLion]

Yes cpf life payouts only sufficient for bare essentials.

Why's that if I may ask?

 

[starfish.starfish]

I retired at 37, not spending 6k a month though.

When retired:
1. You tend to cook more and eat out less, so don't need 1k on food.
2. Not going anywhere, most of time stay at home watch stocks so no need transport spend.
3. Other items like Insurance, property tax less than 1k a year...
4. No income tax since no income.
5. Kid depends on age, before primary school and after secondary high expenses, primary/secondary less expenses.

Sounds boring.

 

[tangent314]

If you use the full ERS, CPF Life does become a pretty strong floor. If you want a life of luxury, then you will need additional savings on top of CPF Life.

 

[BBCWatcher]

If you use the full ERS, CPF Life does become a pretty strong floor.

Yes, if you and your spouse both push your Retirement Accounts to the ERS on your 55th birthdays, choose the CPF LIFE Escalating Plan, and defer payouts to age 70, then you've got a pretty strong financial floor.

 

[rrr2015]

so is working but without the stress from work
with all the time available, find something exciting to do

Sounds boring.

 

[starlight318]

Life will be so boring if i have too much free time. I just look at how i spend my weekend, usually i would just nua at home doing nothing.

The reason early retirement appeals to me is that I don't enjoy my work. So I figured that what I should do is to find a job that I enjoy doing instead of early retirement.

 

[SBC]

Cpf life forms the foundation. I won't consider it a 'strong floor'

Agree that CPF Life is not enough. Need to complement with SRS.
I am target SRS to hit $200k. 50% mark now.

 

[starfish.starfish]

Agree that CPF Life is not enough. Need to complement with SRS.
I am target SRS to hit $200k. 50% mark now.

SRS has no interest. Still need to invest those.

 

[SBC]

SRS has no interest. Still need to invest those.

Of course I know that. Haha

 

[havetheveryfun]

Life will be so boring if i have too much free time. I just look at how i spend my weekend, usually i would just nua at home doing nothing.

The reason early retirement appeals to me is that I don't enjoy my work. So I figured that what I should do is to find a job that I enjoy doing instead of early retirement.

I think most ppl wan early retirement is just not to be tied down by a job. so that they can work when they choose to, and not work because they have to. that's why as mentioned before most ppl go into "semi-retirement" rather than full retirement most of the time.

it just feels good to be able to say "fk u" to ur boss anytime and take ur own time to find a job u like without having to worry about daily expenses

 

[minamikaze]

Given some thought to it - I'm still enjoying my work now, and it offers a fair bit of flexibility. I guess I should not waste it, then. If I do become financially independent, I can choose to take no-pay leave whenever I want and travel - and if the company isn't happy with that, they can feel free to let me go
Thanks to some of the forumers here for the insights.

 

[rrr2015]

personally, early retirement doesn't necessary means stop working. but it means having more options to choose without worrying if your lifestyle will be impacted.

Life will be so boring if i have too much free time. I just look at how i spend my weekend, usually i would just nua at home doing nothing.

The reason early retirement appeals to me is that I don't enjoy my work. So I figured that what I should do is to find a job that I enjoy doing instead of early retirement.

 

[blue_line]

Agree that CPF Life is not enough. Need to complement with SRS.
I am target SRS to hit $200k. 50% mark now.

CPF Life may not be enough to cover all your retirement expenses. but in the context of a strong floor. I think it is definitely sufficient.

 

[cfkm1]

I retired in my early 40s with a fully paid HDB flat that I have rented out to fund my retirement.. Since then I have been living in different neighboring countries for the last 10 years and enjoy my life to the fullest.. Cost of living has been a fraction of Spore COL. I am still able to save money from my rental income and not run out of cash.. So early retirement is not as intimidating as some forumers here put up to be.

 

[starlight318]

I retired in my early 40s with a fully paid HDB flat that I have rented out to fund my retirement.. Since then I have been living in different neighboring countries for the last 10 years and enjoy my life to the fullest.. Cost of living has been a fraction of Spore COL. I am still able to save money from my rental income and not run out of cash.. So early retirement is not as intimidating as some forumers here put up to be.

Can share how you manage the HDB rental while living overseas? Did you appoint someone to deal with the tenants and maintenance etc on your behalf?

Are you single or married? So did you live in the neighbouring countries with a visitor pass and come back to singapore to stamp your passport every month or u have some sort of retirement visa??

Sorry for asking so many questions, hard to come by someone who is actually retired in early 40's..

 

[maple96]

I retired in my early 40s with a fully paid HDB flat that I have rented out to fund my retirement.. Since then I have been living in different neighboring countries for the last 10 years and enjoy my life to the fullest.. Cost of living has been a fraction of Spore COL. I am still able to save money from my rental income and not run out of cash.. So early retirement is not as intimidating as some forumers here put up to be.

wow envy you and agree with you. I guess it might be easier for singles but more complicated for married ones.

People here worry too much over "banking more", worry to much over how to "live more" when retired, so afraid to take the step

 

[starfish.starfish]

wow envy you and agree with you. I guess it might be easier for singles but more complicated for married ones.

People here worry too much over "banking more", worry to much over how to "live more" when retired, so afraid to take the step

Agree sometimes we do over think.
I need to take the step in 1,2 yrs time.