Now, if you have S$1M now and would like to retire for 30 years, what life-style can you afford? How much money can you afford to spend per month as living expenses to last 30 years?
Well, based on my calculation, with S$1M now, you would be able to afford to spend S$3250 per month for 30 years (with 2% p.a. increase in allowance built-in)!
$3250 per month for a couple NOW (with 2% p.a. increase in allowance built-in) is really a comfortable living already.............
Assumptions I made are:
a) Average Investment return of 3% p.a.
b) Average Inflation of 2% p.a.
Above are realistic assumptions and hence totally achievable.
Given that average age of Singaporeans is 83 years old for men and 85 years old for women, if you have enough to retire for 30 years means that you can retire at 53 and 55 years old respectively if you are a woman/man !
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