Do you want to retire at age 54?

A newspaper survey said that Singaporeans want to retire at age 54 (on the average).

Sorry, this is not possible for the ordinary working person. You can retire at an erly age only if you come from a rich family or have a very high income.

A person who starts work at 25 should work and save for 40 years, until age 65, to have sufficient money to live for another 15 years (to age 80). You should save at least 10% of your earnings. The savings for your home or children should be separate items.

A saving of 10% is just sufficient for a basic lifestyle in retirement. If you want a more comfortable lifestyle, you should save at least 15%.

If you are not able to save sufficiently, you should be prepared to work longer, say up to age 70 years, or to live modestly.

You must invest your savings wisely, to get a good return for the future. You should invest in a product that gives you a fairly attractive return, such as a large, well diversified, low charge fund.

Do not invest in products that pays high commission to distributors (e.g agents) and make large profit margin for the financial institution. Take care of your own financial future. Do not allow other people to earn a lot of money at your expense.

Ideal Plan