Is it really so difficult to retire in Singapore? What must one do to ensure that they can retire comfortably when their working days are over? How much does one need to safely call it a day from having to work?
Think about it..some famous celebrities have actually moved to Singapore. This include Gong Li and Jet Li who have both become Singaporeans now. Of course, I am sure their purpose is not to retire here but it seems that they find Singapore a really nice place to live in.
I believe that most Singaporeans also do like to live in Singapore and retire here. However, they are finding it increasingly difficult to cope with the high cost of living and that's when they start to wonder whether they will be able to save up enough for their retirement fund.
Based on the MOH website, it seems that the male and female life expectancy has been increasing slowly over the years and I will not be surprised that for my generation (those in their 20s and 30s) the average life expectancy should be around 85. Considering the retirement age of around 60, that is a good 20 years of time (and money) to be spent during one's golden years.
In a lot of forums, I have found similar concerns amongst many. One comment even states that:
I have also been thinking that retiring in Malaysia is a very viable option as the exchange rate will literally double my spending money. In that sense, I will be able to retire much earlier compared to someone who wants to retire in Singapore. I could even rent out my place in Singapore for passive income and convert that money to Ringgit =) That is indeed a very tempting thought.
I would like to think that there are a few steps that all can take to better prepare themselves for retiring.
1. Determine how much you need for retirement
2. Start saving towards that goal and make sure that the amount you save will enable you to hit that goal
3. Invest your money for the long term to get better returns
4. Cut down on your expenditure
5. Look for sources of passive income
Besides doing financial planning for yourself, you need to make sure that your children (if any) becomes financially independent from you and do not rely on you for money. You will be surprised that some young adults of ages twenty and above still depend on parents for money.
The CPF website has an excellent calculator to help you do your planning