Money Hacks Ep 26: How to achieve a $3,000-a-month retirement income by planning early
9:30 mins
Synopsis: In this new podcast series for 2018, The Straits Times and The Business Times offer tips for the newcomer to the financial and investment scene.
Retirement planning can be made simpler if we start to apply simple and established formulas to calculate what we need at the age of 65, assuming a continued lifespan of 20 years or so after that age.
Mr Walter de Oude, founder and chief executive of SingaporeLife - a next generation life insurance company licensed by the Monetary Authority of Singapore - explains two simple steps to take after listening to this episode.
Step 1: Start by looking at existing CPF calculators online, and read up on the CPF Life scheme for a start.
With the current CPF payout eligibiity age at 65, the CPF Life scheme - introduced in 2009 - provides a monthly income for as long as you live.
Step 2: How to add other formulas like the 4% rule to do a set of mental calculations, or even the "300" formula, where you take your current monthly expense figure and multiply it by 300.
The result is the figure you need in your kitty to keep up your lifestyle even after retirement.
Produced by: Ernest Luis & Christopher Lim
Feedback to: podcast@sph.com.sg
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