NewbiePlanning to retire early
Want to find out what are the various way to build and plan for it, i.e. building a passive income.
@soulsensei - thinking about the rule of thumb for 10x last drawn income at age 67. What's the formula to use for earlier retirement? If say I want to stop working at age 55?
I think start with how much you need in your retirement funds first. there are some rules of thumb for your reference:
- save at least ten times your last-drawn annual salary by the time you reach 67
- expect to spend about 2/3 of your last-drawn monthly salary during retirement
- spend an average of $2450 per month (according to Department of Statistics, 2014)
check out the CPF Life calculator and Retirement calculator on the CPF Board website.
I elaborated my thoughts on retirement planning in Singapore here: https://diaperfinancingfund.blogspot.com/2021/06/money-work-retirement-planning-in.html
I started by making an estimate of how much I'd need to retire, and then working towards it. The first steps I took were (1) Save up a rainy day sum in Multiplier / Fixed deposits, (2) Put money towards CPF to grow my CPF retirement sum and get tax deductions, (3) Open SRS and invest in ETFs / blue chip stocks (and also get tax deductions), (4) Buy health and accident insurances.