The Department of Statistics publishes various sets of data that are available to the public to download from its data collection efforts. One of the interesting data set I came across is on Household Expenditure:
Source:
http://www.tablebuilder.singstat.gov.sg/publicfacing/createSpecialTable.action?refId=3988&exportType=csv
Average Monthly Household Expenditure
HDB 1 & 2-room: $1,287
HDB 3-room: $2,478
HDB 4-room: $3,918
HDB 5-room: $5,283
Exec Flat & Condo: $8,000
Landed Property: $10,409
My own bottom-up estimates suggest that for my family of four residing in a condo, I would need $7,800 minimally to more or less maintain the current lifestyle. If I were at age 55 now, I would need $7,109. And at age 65, $5,977.
- I do not smoke, drink nor gamble. The occasional Toto don't count.
- I own a car and assumed that I would continue to maintain one till age 64.
- I assumed all housing loans have been paid down. No other debts.
- Overseas holidays are not included. I would need surplus to fund these luxuries.
The numbers seem to be fairly close to the overall statistics. I shall be collecting detailed data over the next 12 months to validate these figures.
Funding the Cost of Living
Based on my norms of 4% extraction from an investment portfolio, that means I would need the following to retire on (figures in bracket are if 5%):
Now - $2.34m ($1,87m)
Age 55 - $2.13m ($1.71m)
Age 65 - $1.79m ($1.43m)
In Teh Hooi Ling's "Show Me the Money - Book 1", chapter 19 on "Debunking the 'safe instruments for retirement' myth", she analysed various $1m portfolios over during timelines, and concluded that a 5% extraction to get $50,000 each year was largely viable. This was despite the ups and downs of the market.
Looks promising.
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