Curious minds here – what’s the retirement magic number for Singapore, and when should one aim to hit the hammock? How do you quantify the numbers? i.e. 30 times your yearly earnings, with zero debts, living that dream lifestyle (specifically..)?
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Just a broke lad, no car, no house, pocketing 1,000 to 2,000 monthly working at a petrol station, seeking some nuggets of wisdom. Thanks a bunch, everyone!
Here are what netizens think:
- There is no magic no. But there is a formula. Assuming you live till the age of 70….and u want to retire at 55. you take your monthly expenses x the no. of yrs of not working. So that will be 15 yrs or 180 months. if your monthly expenses is 2k, that would set you back 360k + inflation…. I suggest you do two things. Get an education that will increase your pay and get a financial planner. Retirement is decades in planning. So better plan now
- Don’t target the wrong question. Even if someone tells you the magic number is $2 mil (or whatever), so what? You probably already know that at $1-2k monthly is not enough. Change the question to something a little more within control. “What can I do realistically, to earn more than that?” Your problem is not retirement, your problem is NOW. Keep going, find a different path for yourself.
- There is no magic number. You are what you make yourself to be. If retirement is your game, then sure. Do the math, pick a number, work towards it. If not, one can always contribute to society and still be happy. (Plus there are physical and mental benefits to that too that most don’t like to acknowledge.)
- This number is a range between 25 to 40x and more of expenses. Expenses, not earnings. Expenses has many facets. Expenses are different things to different folks. Longevity of this number (the invested networth) has many facets – retirement duration length, invested asset allocation. It is such a big topic, you can research at other resource site for many, many years.
- how to get a job with higher pay first instead of planning for retirement.