Retirement Calculator: When can you retire? Today, 55 or 65?

Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Hi, I am Junhao. I have been specialising in CPF and retirement, giving frequent talks and consultations in these areas.

(If you wish to look at testimonials on CPF, click here or scroll all the way to the end.)

Most of us work without knowing when we can retire.

My mentor told me that there are 4 kinds of retirement:

  • A – By default
    • E.g. I think I don’t want to work anymore. I want to retire next year.
  • B – By retrenchment
    • E.g. I am retrenched and I can’t find a job that pays me that high.
  • C – By illness
    • I have severe arthritis or leg pain. I can’t work anymore.
  • D – By choice or planning
    • I am 45 and I want to retire at 55 with $3,000 a month.

So what kind of retirement do you really want?

If you want to go for D – By choice or planning, then you have to start planning now.

If you are 40 & above this year, all the more you have to plan.

If you are below 40, you also have to plan, but in another way.

I use the retirement calculator to plan for my friends and family.

This calculator can find out whether your assets and savings can last you till a certain age (e.g. 85 or 90), based on the lifestyle you want (e.g. $4,000 or $8,000 a month).

Whether you are well to do or not, it doesn’t matter. 

Even if you want $10,000 a month, the calculator can find out whether your assets and savings can support that, and till what age.

An elderly uncle in Singapore

Before I begin, let’s take a look at how long we will live.

It can be obtained from Department of Statistics Singapore.

In summary, life expectancy at birth:

  • Male: 81
  • Female: 85

Life expectancy @ 65:

  • Male: 84
  • Female: 87.5

That means, if you are still alive @ 65, you will be expected to live till 84 (male) or 87.5 (female).

So you must plan at least until 85 years old.

If possible, plan until 90.

Don’t believe? Look at this.

And this:

If the rich are worried whether their wealth will last, then all of us should be worried.

Let’s take a look at how I use the retirement calculator to plan for people.

retirement calculator testimonial
cpf and retirement calculator testimonial

This calculator works for all ages. And for the case studies below, just take note of the colour code:

Green for > 40 yrs old

Orange for < 40 yrs old

Alright, let’s begin!

Case 1
Age 59, Female

CPF

  • OA: $45,671
  • SA: $7,229
  • CPF Life @ 65: $863 per month

What She Has

Cash:

  • $125,000 (1% interest)

Insurance Policies:

  • @67: 1 endowment policy maturing with $41,898
  • @68: 2 endowment policies maturing with $114,345 
  • 1 whole life policy

Liabilities

  • Paying $649 yearly premiums (till 87) for whole life policy
  • Needs to pay $71,200 premiums over the next 3 years

Her Current Retirement Plan

Wants to retire with a monthly income of $2,000 (Today $).

Worried about not having enough money in future. Plans to surrender whole life policy and downgrade house if not enough.

Can She Retire Today?

Let’s check.

No, she can't retire today.

When Can She Retire?

She needs to continue working till 65 and then retire but @ 83 years old, all her assets and savings will be used up.

Can't retire at 65 still.

Recommended Advice: What Can She Do?

There is nothing much she can do, except topping up her CPF RA to Full Retirement Sum.

She needs cash by her side to pay $71,200 premiums over the next 3 years.

And she might not be able to work anytime due to health issues. That’s when she needs to use her cash before CPF Life payout @ 65.

Can't retire at 65. Can only review on her situation every year to look at her health and finances.

Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Case 2
Age 59, Male

CPF

  • OA: $55,000
  • SA: $56,000
  • CPF Life @ 65: $1,125 per month

What He Has

Cash:

  • $48,000 (0.05% interest)

Insurance Policies:

  • 2 whole life @ $138,000 current cash value

Liabilities

  • Paying $3,040 yearly premiums (till 99) for 2 whole life policies
  • Still supporting her daughter ($900 a month) for university expenses

His Current Retirement Plan

Wants to retire with a monthly income of $2,000 (Today $).

Worried about not having enough money in future. Plans to surrender policies and downgrade house if not enough.

Can He Retire Today?

Let’s check.

No, he can't retire today.

When Can He Retire?

He needs to continue working till 65 and then retire but @ 80 years old, money will run out. And based on average life expectancy, he will have another 5 years to live.

Can't retire at 65 still.

Recommended Advice: What Can He Do?

  • Downgrade from Private Integrated Shield to Public
  • When his son starts working, can consider surrendering his 2 whole life policies @ 65 to enhance his CPF Life for more monthly payout (otherwise he needs to continue paying $3,040 yearly premiums when he retires)
  • Continue working and save $1,000 from today till 65. Put the monthly savings into a 4% p.a. instrument – safe and capital guaranteed.

By applying the strategies from me, 2 things can be ensured:

  1. His assets and savings can last him until 86
  2. He need not downgrade his house, rent or apply for Lease Buyback scheme 

Can retire at 65 if plan accordingly

Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Case 3
Age 50, Female

When she heard that the retirement calculator is good, she wanted to try.

testimonial 4

Unfortunately, I left the place and so we arranged another time. This was what I found out:

CPF

  • OA: $182,000
  • SA: $216,000
  • CPF Life @ 65: $1,600 per month

What She Has

Cash:

  • $520,000 (mix of fixed deposit and savings account)

Insurance Policies:

  • 1 endowment maturing @ 53 – $20,000
  • 1 endowment maturing @ 56 – $55,000
  • 1 endowment with $520,000 @ 76
  • 1 endowment with current value of $150,000 that matures @ 99

Investments:

  • $300,000 worth of stocks

Liabilities

  • Paying $1,200 yearly premiums (till 99) for whole life policy
  • Paying $120,000 premiums over the next 3 years for endowment

Her Current Retirement Plan

Wants to retire with a monthly income of $4,000 (Today $).

Want to change her car @ 58.

Can she Retire Today?

Let’s check.

Congratulations! She can retire today.
And this is what she told me:

Recommended Advice: What Can Be Enhanced?

  • Downgrade from Private Integrated Shield to Public to make funds last 3 more years
  • Set aside funds to pay for Integrated Shield Plan
  • Set aside funds to ensure $3,000 a month so that won’t need to worry about monthly income (in case market downturn)
Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Case 4
Age 38, Male

CPF

  • OA: $123,210
  • SA: $97,409
  • CPF Life @ 65: $2,350 per month

What He Has

Cash:

  • $50,000 (0.05% interest)
  • Saves $1,000 a month and put in bank

Insurance Policies:

  • 1 whole life policy

Liabilities

  • Paying $6,416 yearly premiums (till 99) for whole life policy
  • Paying $1,600 monthly for housing loan

His Current Retirement Plan

Wants to retire @60 with a monthly income of $3,000 (Today $).

Wants to set aside $3,000 a year for holiday.

Can He Retire @ 60?

Let’s check.

No, he can't retire @ 60.

Can He Retire @ 65?

I suggested to him to grow his cash at 4% p.a. instead of 1%.

He will have so much money that even at 90, he will still have $481,429 cash, still growing at 4% p.a.

Can retire at 65 if plan according to recommended advice.
Here's what he said about the retirement calculator:

testimonial 1
Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Case 5
Age 46, Male

CPF

  • OA: $0
  • SA: $150,000
  • CPF Life @ 65: $1,858 per month

What He Has

Cash & stocks:

  • $200,000

Insurance Policies:

  • 1 Universal Life policy

Liabilities

  • Paying $3,500 monthly housing loan

His Current Retirement Plan

Wants to retire with a monthly income of $3,000 (Today $).

Need $6,000 a year for holiday. Change car every 5 years.

Wants to be on Private Integrated Shield Plan.

Can He Retire Today?

No, it is very obvious that he can't retire today.

Can He Retire @ 65?

The reason why he cannot retire @ 65 because he’s paying housing loan till 70.

No, he still can't retire at 65. But this is what he told me.

Recommended Advice: What Can he Do?

After studying his case thoroughly, this is what I told him:

  • Save money when his daughter and son graduate

With the additional savings, he will be able to retire @ 65:

Can retire at 65 if go according to plan.

Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Case 6
Age 35, Female
Employment Pass

CPF

  • No CPF because foreigner

What She Has

Cash:

  • $50,000 (0.05% interest)
  • saves $800 a month

Insurance Policies:

  • Nil

Liabilities

  • Nil

Her Current Retirement Plan

Wants to retire @55 with a monthly income of $2,000 (Today $).

To be able to set aside $3,000 a year for holiday.

Can She Retire @ 55?

Let’s check.

No, she can't retire today.
In fact, she told me that in her country, many come out from retirement because they are still living and they don't have money left.

Can She Retire @ 60?

Yes but firstly, she needs to save $1,500 monthly and grow it at 4% p.a.

By 60, she will accumulate $1.1mil. That’s the powerful aspect of compounding.

Now, let’s check whether she can retire at 60.

Can retire at 60 if go according to plan.

Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Case 7
Age 54, Female

CPF

  • OA: $706,617
  • SA: $176,167
  • CPF Life @ 65: $1,510 per month

What She Has

Cash:

  • $350,000 (1.5% interest)

Investments:

  • About $80,000 worth of stocks and bonds

Insurance Policies:

  • 2 whole life policies

Liabilities

  • Paying $2,240 monthly housing loan
  • Paying $2,180 yearly premiums (till 99) for whole life policy

Her Current Retirement Plan

Wants to retire with a monthly income of $3,000 from today till 64, $2,000 from 65 onwards (Today $).

Can She Retire Today?

Let’s check.

Can retire today!

How She Can Enhance His Retirement?

She can purchase an annuity to increase her retirement fund by $175,000.

That’s another 2+ years.

Annuity will also ensure that she will have an extra $1,821 per month.

Making retirement funds last for another 2+ years.

testimonial
Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Case 8
Age 58, Female

CPF

  • OA: $20,669
  • SA: $2,700
  • CPF Life @ 65: $1,292 per month

What She Has

Cash:

  • Not much at the moment

Insurance Policies:

  • Mostly term policies

Properties:

  • 2 properties worth about $3mil today

Liabilities

  • Paying about $6,000 monthly housing loan till 73 (but covered by rental income)

Her Current Retirement Plan

Wants to retire with a monthly income of $10,000 (Today $).

Spend $20,000 on travel yearly till 70.

Can She Retire Today?

Obviously not, because she does not have cash or income on hand, and still paying loans.

No, she can't retire today.
Even when real rental income starts coming in at 74, it is still not enough to support her lifestyle.

When Can She Retire?

If she sells her 2 properties at 65, she will be able to retire comfortably with a $10,000 monthly lifestyle.

Can retire at 65 by selling off 2 properties

Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Case 9
Age 28, Female

CPF

  • OA: $2,423
  • SA: $2,940
  • CPF Life @ 65: $3,163 per month

What She Has

Cash:

  • $40,000 (0.05% interest)
  • Saves $800 a month

Her Current Retirement Plan

Wants to retire with a monthly income of $2,000 (Today $).

Can She Retire at 65?

Let’s assume she saves her money in fixed deposit of 1% p.a.

Can't even retire @ 65.

What Can She Do?

Put her money into good use at 4% p.a.

Let’s see whether can retire at 60, instead of 65.

Can retire at 60 (5 yrs earlier) + funds last longer for 4 more years

Scan to try the retirement calculator with me! OR whatsapp 9295 2844

Testimonials on CPF

Because I know CPF inside out, many of my friends and strangers ask me about CPF.

I will advise them on the strategies to maximise their CPF and CPF Life.

Leave a Comment