Think Abt 'R'

I was reading a book on MRT, its was written in chinese, i only manage to complete 3 pages from Harbour Front MRT to Hougang MRT. Not because my chinese is really that poor, didnt fall asleep neither its beautiful babes around. Its the contents that make me took up my 'heavy duty nokia 7250' haha those who saw it should know why i quote it.

Inside is talking about some survey done in US on the retirement funds of 100 Americans. If you want to know the ratio just do a search on the web, i think you should be able to find those info easily.

The main dish is : retirement

With reference from - http://www.singapore-window.org/sw05/050225to.htm

Average retired Singaporean has among the lowest average monthly retirement income among the 15 countries, at $1692. Canada ranked first with $4216, with Hong Kong last at $1177.

This average monthly income is marginally above the average household expenditure of $1592.

The study, however, did not take into account factors such as different costs of living in these 15 countries.

1) When you plan to retire ? Let this age be 'A'
2) How much you want to have each month after the retirement ?Let this amount be 'B'
3) What's your current age ? Let this age be 'X'
4) Have you start saving for retirement ? How much you save for retirement annually ? Let this amount be 'Y'
5)If you want to relies on your children support and giving you an amount monthly. Let this amount be 'Z'

Eg A average guy whose age 24 now and wish to retire at a age of 50 with monthly retirement fund of 1692 ( varies if loans not yet complete, children eduation or debts). Lifespan to age 80

Working life = A - X = 50 - 24 = 26 years
Retirement period = Lifespan - A = 80 - 50 = 30 years
Total retirement fund needed to last 30 years = 30 years * B = (30 * 12 )1692 = 609,120
Total retirement fund needed to last 30 years ( if your children are supporting you) = 30 years * B = (30 * 12 )(1692 - Z) = G
Saving needed monthly during working life = 609120 / (26 * 12) = 1952.30/mth

Thus this guy need to save 1952.30 monthly to have that amount of retirement income.

So how much do you have for your retirement ?

Facts :
http://www.singapore-window.org/sw00/000525fe.htm

Even government leaders warn that Singaporeans will need to look beyond the fund to finance their retirement. "The CPF is not sufficient," National Development Minister Mah Bow Tan said in November.

The trade-off for Singaporeans is that they can use their CPF accounts for major expenses such as housing and medical treatment

A government-led committee on ageing noted last year that 24 percent of the CPF members who reached age 55 in 1998 had less than S$16,000 (US$9,250) in their CPF accounts--an amount that will run out quickly if the retirees lack family support.

http://www.ssa.gov/policy/docs/progdesc/intl_update/2005-05/2005-05.html

"Despite having one of the world's highest saving rates, many Singaporeans are expected to have insufficient savings in old age because of preretirement withdrawals for housing purchases, low returns on CPF account balances, and the tendency for many to stop working at relatively early ages.

For example, the 3 million members of the CPF have placed S$110 billion (US$67.2 billion) of their savings into property but only S$29 billion (US$17.7 billion) into investments and insurance. Worsening demographics are compounding the problem. It is estimated that by 2030 the number of persons aged 65 and older will increase fourfold, with no corresponding growth in the working-age population to support them."