Retirement Savings + CPF Life (+ Inflation + Bequest) Calculator Online

In my previous post, I had made demonstrated how to use my online calculator, which you can find it here:
    http://make-money-secrets.blogspot.sg/p/retirement-savings-online-calculator.html
to calculate how much you need to have saved by the time you retire.

I had illustrated for this example using my online calculator, where you need to key in the following:

Amount you would like to withdraw each month in retirement ($):  6000
Annual Interest Rate you expect to earn on savings (in dec., eg 0.03 for 3%):  0.01
Number of years you would like to make monthly withdrawals:  35 

Then, you can click on “Calculate” and the online calculator will give you the output as:
This is how much you need to have saved by the time you retire ($):   $2,125,506.18

I had concluded that: “So in conclusion, if a couple is able to accumulate $2.12 Millions dollars, they would be able to retire at 50 years old with pretty comfortable life-style!
Note that I have not taken CPF Life payout (starting at 65 years old) into account, so in practise a couple need less than $2.12M to retire comfortably if you take into consideration that they will be receiving $1300 pm for man and $1200 pm for women starting from the age of 65 years old!”

Ok, so the issue here is now regarding CPF Life payout.
I have friends enquiring about whether I can also factor CPF Life payout into account in my retirement savings calculator, since CPF Life (which is a form of life-time annuity scheme) is now part and parcel of every retirees in Singapore!

I am glad to say that I had managed to include not only CPF Life payout but also effect of inflation and also considering bequest (i.e. the amount you want to leave to your heirs) into my Retirement Savings online calculator!  You can access my Retirement Savings + CPF Life (+ Inflation + Bequest) Online Calculator here:
    https://make-money-secrets.blogspot.sg/p/retirement-savingscpf-life-calculator.html

Let’s just try my Retirement Savings + CPF Life (+ Inflation + Bequest) Online Calculator by keying in the following parameters:


Amount you would like to withdraw each month in retirement ($): 6,000.00
Annual Interest Rate you expect to earn on your savings (eg key in "3" for 3%): 1.0
Age you would like to retire (Years Old): 50
Amount you want to leave to your heirs (bequest) ($): 0.00
Annual living Inflation Rate you expect (eg key in "2" for 2%): 1.0
CPF Life Payout Amount per mth ($): 2,500.00
CPF Life Payout starting Age (Years Old): 65
Age you expect to live until (Years Old): 85

Then, you can click on “Calculate” and the online calculator will give you the output as:

This is how much you need to have saved by the time you retire (before inflation) ($): Calc.  
$1,525,506.18
This is how much you need to have saved by the time you retire (inflation-adjusted) ($): Calc.  
$2,064,000.00

So, we can see that in order for a couple to retire at 50 years old and to have $6000 per month for retirement (for both’s expenses), you need to save $1.525M (before inflation) and if you factor in inflation (assuming just 1%), you would need to save $1.920M!

Note that I had made following assumptions:
• Assume that both the couple retiring at 50 years old will live only till 85 years old.
• Assume that CPF Life payout for the couple is $2500 per month (being $1300 pm for men and $1200 pm for women if both have the Full Retirement Sum of $161,000 at 55 years old) and that these figures (hopefully) will not be lowered in future.
• Assume that inflation is only 1% (which is on the low side, a more realistic figure should be 2% as used in CPF Escalating Payout plan).
• Assume that the interest/return you would get for your pot of savings to have an average of 1% (which is also on the low side, and I think a more realistic figure can be 2% and above if you have >$1M to invest).

You can play around and change the parameters to those values that suit your situation and you can then plan your own retirement!

With my Retirement Savings + CPF Life (+ Inflation + Bequest) Online Calculator, now you can plan your own finances independently without needing the help of financial planners! (Beware of financial planners! – because some are all out to sell their products rather than to help you plan your finances and advise you appropriately for your retirement!)

Again, you can access all the online calculators that I have developed from this web link URL:
    https://make-money-secrets.blogspot.sg/p/my-online-calculators.html