In 37 years time, CPF LIFE payouts will be much, much higher than $1550 as FRS will probably be about $500k. Based on my quick estimates, it will be about $3880 per month for the standard payouts from age of 65.
thanks for sharing. just want to highlight that life is never static. so while it's fun to do the projection, it is unlikely the final number will be accurate due to the numerous assumptions and long period of time.
In your spreadsheet, cell D23, you should not use =C30 because CPF LIFE payout only happens at age 65 onwards. Your current approach severely over-estimates the money available during retirement.
As a society, we are focusing on the wrong things. People like to take short cuts. Money is just one solution. People need to strengthen their relationships with one another. Be more considerate and take care of one another. In todays times, children are less filial. Husband and wives are less filial. Siblings dont care about one another. Colleagues sabotage one another. Backbiting and gossiping is a norm. No matter how much money you have, weakening relationships will make you poor. All these talk of retirement money but the reality is that the hospital and old folks home are full of unhappy elderlies abandoned by their family. Its not money no enough. Its love no enough. Humanity no enough.
Great work as usual and calculator Kelvin! Thanks but your example a bit not reflective of what’s happening in Singapore. One, very few folks have 2 kids at 28yo, more like mid to end 30s IMHO. Two, most folks biggest expense will be property instalment so that should be included unless you assuming they have zero debt at retirement.
In time to come, those above 35 years of age do not have to work. Selling off their million dollar HDB homes will take care of early retirement. Who knows, we may even be like the USA with citizens living on the streets. They call it a 'lifestyle choice' when homes become unaffordable, though still very affordable according to official narratives, for some folks. With every family having two or three HDBs, ie the elderly and two kids, even renting out one home is good enough to tide them through. In time to come, Singapore will be a retirement paradise. Citizens do not have to work till 65, just live on the rental of their properties at age 35, and do not have to work after that. Now with HDB flats selling above a million dollars happening a dime a dozen, life is really so good that not many think it necessary to work, with all the added subsidies thrown at them. They are even asking for applications to participate in various schemes. No wonder so many foreigners are rushing for citizenship.
Hi kelvin, excellent calculator. can I check for the expected CPF payout, does the calculator inflate the amount with time? E.g. we input current FRS amt of $1.5k/month. In 25 years this will be much higher. Does the calculator factor this?
8% is laughable, especially for the commoner who is well unable to do anything better than DCA into S&P. achieving 8% with that means u must time at very good entry points, which is out of the ability of the laymen
Hi Kelvin, thank you for the excellent spreadsheet. I have a stupid question. How do I interpret the last row "Shortfall / Surplus". For $X surplus, assuming all figures entered happened to materialized as predicted, does it mean one will have $X left over as legacy after age say 85?
Hi Kelvin, may I ask, under Investments you put Rate at 8%. Does that mean the investments will run at average of 8% per year until the person retires? or until the person pass away?
In your spreadsheet column K about balance, in your calculation when you add passive income, I think you did not compound the passive income with interest rate cell E23?
Just checked, i think i got compound. It checks if there’s passive income for that age. If there is, it multiplies by 1+E23, which is the compounding part
That’s the price to pay for having efficient run country. Maximize productivity with minimal costs. There is always foreigners who can work at lower costs.
As long as one continues fully blaming the govt instead of working hard, taking control of one’s life, seeking opportunities constantly and not being complacent- then yes, one will never retire in singapore with such a mindset 😂
@@ShindoSensei A lot of elderly in Singapore cannot retire comfortably. Maybe you should propose your "fantastic" idea to them and ask them to work hard and seek opportunities constantly so they can retire better in a rising cost environment.
@@joellim7010 you’re absolutely right. This “fantastic” idea needs to be encouraged among the younger working class, to help support the elderly working structure. Unless maybe what is being implied here is more social welfare and a free lunch? ie “where my cpf money? Can dont raise gst and coe and erp?” That logic sure sounds very sound. The money will magically drop from the sky to support all the elderly social welfare initiatives.. wait what is that i hear? “EH BUT WE HAVE RESERVES LEH, USE LAh! THE RESERVE REPLACEMENT RATIO WILL MAGICALLY BE OK, MONEY WILL FALL FRM SKY TO REPLENISH THE RESERVEs” Yes that makes total long term sense!
Rate of returns for your savings are supposed to offset inflation. Now you are scaring people because of the current high inflation, But now is actually an unusual circumstances due to Russia Ukraine war leading to food shortage and also tight supply chain. US is targetting 2 % inflation. Of course they will not achieve this in this current period but 10 years from now? So your bring up inflation at this time is artificially inflating the figures.
The world is not guaranteed to be uneventful in the future. Climate change, more wars, more pandemics, overpopulation, aging population just to name a few. It's better to cater to the worst case scenario to better prepare ourselves.
@@KelvinLearnsInvesting The correct scenario is the most probable one and not the worst case scenario ie taking the inflation rate to be the average of the last 15 years maybe. Your worst case scenario is worrying people unnecessary, putting stress on them and giving them a probably wrong projection.
Hi Kelvin, is there instruments in Singapore market where you can earn above 3% and no risk so you can put a lump sum and earn a monthly usable income?
would be good is the calculator can include no of kids, age of kids, no of yrs before they start earning money, how much we spend on kids. With kids there are no FIRE
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In 37 years time, CPF LIFE payouts will be much, much higher than $1550 as FRS will probably be about $500k.
Based on my quick estimates, it will be about $3880 per month for the standard payouts from age of 65.
Kelvin, this is the best spreadsheet. Thank you so much❤
thanks for sharing. just want to highlight that life is never static. so while it's fun to do the projection, it is unlikely the final number will be accurate due to the numerous assumptions and long period of time.
No need 1.9m la, just need 1 HDB flat rent out for 3k, go JB more than enough liao, can retire at 45 🤣🤣
Already Singapore families are doing so. You can see them shopping at Giant or Lotus's in JB.
In your spreadsheet, cell D23, you should not use =C30 because CPF LIFE payout only happens at age 65 onwards. Your current approach severely over-estimates the money available during retirement.
Oh you are right! I’ll change it later
edit: Updated to allow specify of passive income starting age
As a society, we are focusing on the wrong things. People like to take short cuts. Money is just one solution. People need to strengthen their relationships with one another. Be more considerate and take care of one another. In todays times, children are less filial. Husband and wives are less filial. Siblings dont care about one another. Colleagues sabotage one another. Backbiting and gossiping is a norm. No matter how much money you have, weakening relationships will make you poor. All these talk of retirement money but the reality is that the hospital and old folks home are full of unhappy elderlies abandoned by their family. Its not money no enough. Its love no enough. Humanity no enough.
Great work as usual and calculator Kelvin! Thanks but your example a bit not reflective of what’s happening in Singapore. One, very few folks have 2 kids at 28yo, more like mid to end 30s IMHO. Two, most folks biggest expense will be property instalment so that should be included unless you assuming they have zero debt at retirement.
Really really good calculator. Thank you Kelvin!!
In time to come, those above 35 years of age do not have to work. Selling off their million dollar HDB homes will take care of early retirement. Who knows, we may even be like the USA with citizens living on the streets. They call it a 'lifestyle choice' when homes become unaffordable, though still very affordable according to official narratives, for some folks. With every family having two or three HDBs, ie the elderly and two kids, even renting out one home is good enough to tide them through.
In time to come, Singapore will be a retirement paradise. Citizens do not have to work till 65, just live on the rental of their properties at age 35, and do not have to work after that. Now with HDB flats selling above a million dollars happening a dime a dozen, life is really so good that not many think it necessary to work, with all the added subsidies thrown at them. They are even asking for applications to participate in various schemes. No wonder so many foreigners are rushing for citizenship.
nice insight.
Hi kelvin, excellent calculator. can I check for the expected CPF payout, does the calculator inflate the amount with time? E.g. we input current FRS amt of $1.5k/month. In 25 years this will be much higher. Does the calculator factor this?
No more videos on crypto? Like what's the best exchg today to use? Thanks for another great video
Damn power excel skills!
Useful- clear, reasonable, systematic!🎉❤
Thank you!
$1m is more than enough!!
Inflation is rubbish. As I age, my expenses drop (if I remain healthy)
8% is laughable, especially for the commoner who is well unable to do anything better than DCA into S&P. achieving 8% with that means u must time at very good entry points, which is out of the ability of the laymen
very useful calculator! thank you so much!
Hi Kelvin, thank you for the excellent spreadsheet. I have a stupid question. How do I interpret the last row "Shortfall / Surplus". For $X surplus, assuming all figures entered happened to materialized as predicted, does it mean one will have $X left over as legacy after age say 85?
Yup! It's the leftover money after we've passed away
I see 1.9m i immediately fainted with a heart attack. After recovering，i rent a 5 star condo and live there.
Hi Kelvin, may I ask, under Investments you put Rate at 8%. Does that mean the investments will run at average of 8% per year until the person retires? or until the person pass away?
E22 is till he retires. E23 is the return during retirement
Hey Kelvin, how about adding a tax expenses column in your excel sheet?
In your spreadsheet column K about balance, in your calculation when you add passive income, I think you did not compound the passive income with interest rate cell E23?
Just checked, i think i got compound. It checks if there’s passive income for that age. If there is, it multiplies by 1+E23, which is the compounding part
now still got 2 veg 1 meat caifan at $3? tell me where? maybe by the time i go there with time and tpt will cost me $10 liao leh
The cell K3 (balance amt) is not correct. it seems like did not multiple the CPF Payout/ Rental Income/Allowance by 12.
Ah, you are right. Fixed!!!
As long as the Singapore's current ruling government is in power, is it even possible for the citizens of Singapore to retire?
That’s the price to pay for having efficient run country. Maximize productivity with minimal costs. There is always foreigners who can work at lower costs.
As long as one continues fully blaming the govt instead of working hard, taking control of one’s life, seeking opportunities constantly and not being complacent- then yes, one will never retire in singapore with such a mindset 😂
Yes, I can retire
@@ShindoSensei A lot of elderly in Singapore cannot retire comfortably. Maybe you should propose your "fantastic" idea to them and ask them to work hard and seek opportunities constantly so they can retire better in a rising cost environment.
@@joellim7010 you’re absolutely right. This “fantastic” idea needs to be encouraged among the younger working class, to help support the elderly working structure. Unless maybe what is being implied here is more social welfare and a free lunch? ie “where my cpf money? Can dont raise gst and coe and erp?”
That logic sure sounds very sound. The money will magically drop from the sky to support all the elderly social welfare initiatives.. wait what is that i hear? “EH BUT WE HAVE RESERVES LEH, USE LAh! THE RESERVE REPLACEMENT RATIO WILL MAGICALLY BE OK, MONEY WILL FALL FRM SKY TO REPLENISH THE RESERVEs”
Yes that makes total long term sense!
Rate of returns for your savings are supposed to offset inflation. Now you are scaring people because of the current high inflation, But now is actually an unusual circumstances due to Russia Ukraine war leading to food shortage and also tight supply chain. US is targetting 2 % inflation. Of course they will not achieve this in this current period but 10 years from now? So your bring up inflation at this time is artificially inflating the figures.
The world is not guaranteed to be uneventful in the future. Climate change, more wars, more pandemics, overpopulation, aging population just to name a few. It's better to cater to the worst case scenario to better prepare ourselves.
@@KelvinLearnsInvesting The correct scenario is the most probable one and not the worst case scenario ie taking the inflation rate to be the average of the last 15 years maybe. Your worst case scenario is worrying people unnecessary, putting stress on them and giving them a probably wrong projection.
Hi Kelvin, is there instruments in Singapore market where you can earn above 3% and no risk so you can put a lump sum and earn a monthly usable income?
Singapore savings bonds and t bills
Why live until 80+? The last few years in nursing home or wheel chair bound are no fun. Why not terminate life at 75…money problem solved
Not before you have the experience as McDonald's uncle or auntie.
would be good is the calculator can include no of kids, age of kids, no of yrs before they start earning money, how much we spend on kids. With kids there are no FIRE
1.9M is for one person, husband + wife or family of 4?
It's different for everyone. 1.9M is for John
the calculator seems to have cash & investment contribution going past retirement age?
Ah, no. It only takes from passive income after retirement
good video!
Many pple don’t have 1.9 mils by then.. how? Wait die?
Moneyowl close shop affect you? no vid on it yet!
I believe that this figure is inclusive of CPF.
Work until die for most sporean...
can always retire in JB tho. or thai
Cpf give you???
100 dollars allowance from your kids... 💀
Kelvin I realize u r not showing SGD & Chinese man… we r Singaporean here, not American la.
MAJULAH SINGAPURA
I rented out my 4 room flat at 4k a month n can shake my legs already..
John look awfully familiar…
ya dude. I think he is a doctor somewhere.
No no no, he was a fireman…
Maybe because he is an Astronaut
I have key in some figure on the google sheet.
43 years later, my yearly expense is $100k😅 at age 85. 3% inflation
Is it accurate?
Check your "Post retirement expense adjustment". It needs to be in percentage, e.g. 100%, 80%
GG liao