This story resonates strongly with so many of us, the sandwich generation.
None of us wishes for our children to go through what we have to go through.
But what do we need to do so that we will truly be the last sandwich generation?
Assuming that we stay healthy and productive (working) till we are 65, and that we continue to live for another 20 years, how much retirement fund do you think we will need to have in place by the time we reach 65?
A simple estimate of $2,000 per month life expenses works out to $480,000 sum for 20 years.
This is assuming that we will be relatively healthy and have no special need for continuous medical treatment.
In reality we know that life is rarely that predictable.
Most HDB owners have this idea that they should strive to fully pay off their HDB flat before they reach retirement.
And when there is need for cash, they can sell and downsize to smaller 3 Room HDB flat in old age.
Does this strategy work?
Let’s take a look at the number.
Most Singapore family live in 4 Room HDB flat. An average 4 Room HDB flat today is worth $425,000 and average price for 3 Room HDB flat is $300,000. So the most we could generate out of this downsizing move is about $125,000 before deducting various expenses.
This means we still need to have more than $350,000 cash to fill in the gap. This also assumes that our aging HDB flats do not diminish in value.
What is the market trend for HDB over recent years?
Is this the best strategy to plan for our retirement day?
Could we have done anything differently?
This website is not about the ultimate secret of “sell one buy two” or “how to upgrade to condo without touching your saving” dream.
It is about empowering our readers with the truth that will set them free.
The truth is every family has its own challenges and aspiration.
The truth is that with the right planning, we could plan for a better future.
A retirement day free of debt and worry.
Our priority is always to understand the value and situation of each unique family. And to provide our personally tailored advise for you.
If you resonate with us, if you would like to hear more about how we could plan together to be the last sandwich generation, drop us a message here or just click on the WhatsApp button below.
