Sunday 23 April 2023

How to ensure your money never runs out in retirement?


Die early.

FIRE at 35, go sell salted eggs before age 37.

Retire "early" at 55, bye bye after 58.

Forced to quit and rot at home after hitting 70, up lorry age 71.

Remember when our official retirement age was at 55?

That's because that time most retirees meet their makers in their late 60s or early 70s.

That meant their retirement nest eggs just have to last them for 15 years? 20 years tops!

Now what's the actuarial age given by big daddy on when they "expect" us to live to? 

Around 85 right?

Some have probably figured out why big daddy switched to CPF Life at this point. Wink.

The old Retirement Sum Scheme (RSS) is like planning our retirements using the Withdrawal Rate model - or what I prefer to call killing our Golden Goose slowly though a thousand cuts.

Can you spot the biggest fly in the ointment for this solution?

So when you gonna die?

Die early no problem; live long long like Dr Mahatir could be problem!!!

Big daddy's solution is to "socialise" retirement - take the bricks from East wall to patch the holes at the West wall.

You can do that too!

If you're a couple on the 1M65 path, the minimum PC requirement sums may not last the both of you till your 90s...

But if one of you goes in your late 60s or early 70s...

What? Don't look at me! 

You should pay more attention to your partner if he/she looks at you funny...


The alternatives?

Work beyond your 70s and never retire. I don't see anything wrong or sad with it if you're doing what you love.

Or just see the 1M65 for what it is - a bait and switch routine. 

Nobody makes money off 1M65, but if its 4M65... kaching!

Better you pivot and capitulate on your own to chase the recommended PC requirement sums in your youth than to do so in your 60s!

Or maybe we don't exercise; don't eat healthy; do our best to wear and tear our bodies through wine, women, and song?

Yup, don't have to worry money not enough during retirement if we sayonara in our 60s!!!

Grasshoppers and crickets unite!

Sarcasm aside, if you can spot bad advice masquerading as "in your best interest advice", you'll be OK.

You're not bei kambing anymore. Wink.


  1. Smol,

    One confirmed solution. Achieve FI. One does not have to RE and continue full-time employment. One has the option of the type of employment and choose such employment.

    When one is not happy with the current employment, one looks for another one whilst remaining in the present one. If one does not like it at all, quit and search for another one given that the existing investment portfolio/saving can last one for a significant amount of time. Tired, rest. This is the way of enjoying life as per my perspective.


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  2. Hi SMOL,

    Money if can't buy freedom post retirement also cham.

    Sometimes not say "maybe we don't exercise; don't eat healthy; do our best to wear and tear our bodies through wine, women, and song" then can kick bucket early.
    Can't die yet got to spend tons of money on medicines, hospitalization and caregiver. Wheelchair bound, or worse still, bed-bound... cannot travel at will.

    Not all idea on retirement can be rosy especially when one retires only at a ripe old age.

    1. Rainbow,

      3 words: Quality of Life.

      Long life can be a "curse" or "punishment"; hence we better be careful what we wished for...

      An early death could be a blessing or welcome relief from pain and agony.

      It's never black and white that long life good, short life sad...

      I am glad we already have the Advanced Medical Directive (AMD) in place.

      That's a start.

      As Singapore have more senior citizens with debilitating illnesses but can't go in peace and suffering in great agony, this topic of euthanasia will be brought up.

      I personally hope it will be legal in Singapore when I'm in my 80s, just to have one more option available so that I can go with dignity, where needed.

  3. Hope big daddy's CPF life has got rising healthcare cost well factored in.

    1. Ah, how can I forget about this:

    2. Rainbow,

      Cost of living inflation is factored in through the constant "moving of goal posts" for our CPF Full Retirement Sum (FRS).

      Then again, even if you choose the inflation adjusted plan with 2% inflation adjusted increments, it's definitely behind the inflation in medical costs...

      That's why the "failed" Eldershield (voluntary from age 40) has been replaced with Careshield (mandatory from age 30)

      To patch the holes in the West wall, we need more bricks from the East wall!!!


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