Ever wondered what you want to do when you retire..say 55 years old? Continue working? Or enjoying the sun at the beach every single day?
Many people have no choice but to choose option number 1, which is to continue working. Here's why.
Assuming at age 30 till age 55:
Monthly Salary: $3,000
Monthly Spending: $2,000 (All in expenses including housing loans)
Monthly Savings: $1,000
Yearly you save: $12,000
Over 25 years (55 - 30) you save: $300,000
At age 55, you stop working and your spending remains the same
$300,000 / $2,000 per month = 150 months (12 Years and 6 Months)
Meaning to say at age 67, you have to start working again to maintain your monthly spending of $2,000!
According to World Bank, Singaporean Life Expectancy is up to 82 years old! Which means if we plan to have enough money to retire with $2,000 per month, you have to work till 65. But what if you have unexpected expenses along these years, such as, holiday trips, marriage plans, medical issues, housing, economic downturn, etc etc, how are you going to withstand from all these unexpected stuffs?
The answer is planning the right way as early as possible. If along the way, we have things that would prepare us for such unexpected stuffs, we don't have to worry about any financial issues. If we put our savings in the right area and at the right time, we can have guaranteed monthly income of $2,000 even when we stop working at 55.
End of the day, it doesn't matter how much you earn a month, but how much you spend in a month, and spend in the right way! If you need my service on any insurance products, do feel free to sms/whatsapp me (Jacky Goh) at +65 9151 9924 for more information.
