Imagine this: you and your partner each have an income of $8000, and you have paid off your housing mortgage for your HDB. This may seem like the ideal situation, but the question is, how much do you think you would need for your retirement?
Research from the Lee Kuan Yew School of Public Policy has placed the monthly budget that is required for an elderly couple to fulfill their essential needs, at $2351. With this in mind, how can you ensure that you would be able to retire comfortably and enjoy your golden years?
Assuming that a couple of the same age retires when they are 65 years old, and that the average person’s life expectancy is 85 years old, the pair will essentially be retired for a period of 20 years. Taking the annual inflation rate to be 1.6%, you would need $775,065 to tide you through these 20 years, in terms of fulfilling your basic needs.
However, being caught unawares by medical emergencies is a scenario you would not want to find yourself in. Factoring in possible medical emergencies and one annual overseas trip, you would need $1,648,373 for your retirement. If you want to prepare yourself for any medical emergencies that could potentially crop up, and also enjoy golf trips, as well as two overseas vacations every year, you would need retirement savings of $2,197,830.
The bad news is: Singaporeans are not saving enough for retirement. However, it is possible for you to have a stress-free and enriching retirement.
If you and your partner can each afford to buy property, you may find yourself facing the dilemma of whether you should upgrade to private property. Taking on another debt to purchase a condominium priced at $1.2 million, when you could otherwise be debt-free, may not seem the most appealing choice. However, this decision could determine the value of the asset in your possession, when you turn 65. Instead of a $400,000 HDB flat, it could be an asset worth more than $2.4 million awaiting you at that milestone in your life.
The concept of investment may sound daunting to many of us. After all, there is the risk that you could lose money instead of growing your wealth. How can you ensure that your property purchase would turn out to be a financially viable asset? This is where a consultant can step in!
A consultant can equip you with the right property advice, tips on making prudent financial plans, and risk management strategies. There are many ways you can go about your investment journey, and there is no singular all-encompassing rule that applies to every situation. While everyone’s financial circumstances are different, there is no exclusivity when it comes to investing in property.
Head over to www.assetprogressionleader.com, and find out more.