Jun 22, 2014

Cory Diary : Retirement Amount


Retirement Amount

One of the misconception about saving is how long it can last once we retired.
Assuming no investment and just plain saving bank. See Table 1.

Table 1 : Without inflation adjustment







Above is a simulation without inflation. How will this impact me ?
Assuming 3.5% inflation rate, the monthly absolute amount increases as Table 2.

Table 2 : With inflation adjusted







So how long can my S$1M last actually ? See Table 3.



















Just  below 16 years. After that i am on my own ...

For those who are curious on whatif Inflation hits 5%. The answer is 14 years.
That's how long S$1,000,000 can last.


Cory
22nd June 2014



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