S$571,715 seems a lot. Hypothetically, at different inflation rate, the present value of the S$571,715 is as shown below:
More than S$260,000. Still seems quite an amount for retirement for today's living. At least, a good start state for retirement. Enough for retirement? Depending on lifestyle, I am sure there are tons of people screaming that is not enough.
The survey also highlighted that more than 85 per cent of those polled expect to live on a retirement income of S$3,500 per month for the next 15 to 20 years or more.
According to DBS Bank, which conducted the survey, the average savings would only last about 13 years. This means there will be a time you might just have to live only on the annuity given out by CPF Life, provided there is no change of CPF policies at that point in time. I am not sure how it will feel like when i'm in my retirement age, but i am certainly not leaving it to chance.
Anyway, the whole gist of the article was succinctly mentioned by DBS Consumer Banking Head Jeremy Soo:
"With longer life expectancy and changing expectations of retirement living, it has become increasingly important for people to start investing for retirement early. An early head start, even if it is a small amount, will increase the probability of meeting your lifestyle needs when you retire."
So it is really never to early to plan for your retirement.
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