
With no obligations and an abundance of time, an early retirement sounds like the answer to all misery. However, is it really wise to do so and at what cost would it take to retire early? With many only realising the reality of retirement in their 50s1, is an early retirement really possible? In this article, we highlight the three potential problems of an early retirement and the solution to these problems.
(See "Is Insurance Really A Waste Of Money?")
#1 Costs
Do you intend to work until the official retirement age in Singapore? Currently set at age 62, you may wish to retire earlier.2 However, would this be an achievable dream? With Singaporeans experiencing a life expectancy of 83.1 years, an early retirement would then result in having to finance a longer retirement.3
Ideal retirement age |
Life expectancy |
Years spent in retirement |
Yearly retirement expenses |
Amount needed to retire, with inflation taken into account |
40 |
83.1 |
43.1 |
$14,400 |
$1,159,610 |
45 |
83.1 |
38.1 |
$14,400 |
$953,233 |
50 |
83.1 |
33.1 |
$14,400 |
$771,713 |
55 |
83.1 |
28.1 |
$14,400 |
$612,057 |
62 |
83.1 |
21.1 |
$14,400 |
$420,315 |

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