Quote:
Originally Posted by nono1973
Hehehe...i guess everyone is truly different then. One of the key reason why i picked Batam instead of Thailand or JB is becos, lesser people choose the option i did. In a way, Batam is way less crowded,hehehe...
1. When it comes to cost of living, its really much depending on how much one wish to spend. If i choose to spend less, cost of living can be way lower than in JB but if i choose better living option,it could cost way higher. Try the S$5 living a day challenge and you will have a better understanding when it comes to cost of living. Its more about quality of life versus cost of living and everyone's requirement can be different..
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Yes, everyone’s lifestyle during retirement differs. One must have proper financial planning before going into retirement so that his retirement life will not get disrupted halfway..
Retirement planning basically to ensure that :
i)There is a steady flow of income for the retiree for the rest of his life after he has stopped working.
ii) Retirement expenditure to be budgeted carefully, including taking into account those hidden or indirect costs. Also to ensure that monthly retirement income must be more than the expenditure. The surplus after expenditure can then be accumulated to enhance the savings. And the cycle goes on.
iii)Must reserve funds for medical treatment and unforeseen circumstances like emergency.
iv) Liquidity of asset is an important factor as it is the ability you have to convert any asset into cash quickly as you may need it urgently. Cash is the best.
v)The monthly retirement income must not be subjected to too much fluctuation.
The monthly/yearly income for retirement can come from the following:
1) Passive income from rental of property like flat or room. Rented out a HDB 3 room flat can fetch about $1800-2200 monthly. However, this is not a very stable type of income as the tenant may terminate the lease anytime.
2) Annuity income on a monthly payout from insurance or investment company. Annuity offers better interest rate returns (usually about 4-5%) as compared to fix deposit in bank.
3) CPF life monthly payout from 65 years old for as long as the person lives. If have already set aside the full retirement sum by age 55 is expected to get a monthly payout of one thousand over dollars from age 65.
4) Insurance saving plan payout usually in a lump sum after having invested for many years.
5) Other investment income like FD interest, shares dividend, etc
Above is my 2 cents on retirement planning, everyone may have his own perpective...