Monday, June 14, 2010

Why do we all need to plan for our financial future?

The answer is very simple. It costs more than $80,000 to send 2 children to local university for four years. You may have to spend close to $300,000 to buy a 4-room BTO flat. To fund a long and comfortable retirement, you may need to save $500,000 to $1 million or more, depending on how you plan to live in your golden years.

We are really on our own when it comes to paying for university fees, retirement. It’s true that CPF will be there for us, but will the safety net be enough? Will the monthly payout of about $1,100 offered by CPF life be enough to retire?

The more frightening part is that retirement is becoming a longer and longer period of life. Average Singaporean male is expected to live till 79 while woman is till 83. There is easily another 15 to 18 years worth of living expenses to cover. In fact, if you make it to 65, chances are you will live another 18 years or more. That will be lots of years of bills to pay for.

Some of you might not like this, but this is the reality we live in today. We all have to do our own savings, investing and planning.

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