Saving Too Much For Retirement ?

Was having a casual conversation over the dinner with friends last week and some knew that I am not working since 2015, asking if my investment income will be able to cover my expenses. I told them that I am still able to save $60-80 K a year after deducting all my yearly expenses including holidays and staycations.

“Then you are saving too much for your retirement !”, one of them said that .. I was stunned like: huh ?? saving too much ?? …Uhhh!

Are you saving too much for retirement? ( from
When putting all this together, Blanchett summarizes “many retirees may need approximately 20% less in savings than the common assumptions would indicate” and that “retiree expenditures do not, on average, increase each year by inflation.”

To some extent, yes, we  Asian are more conservative and tend to save more or even trying to leave a legacy to our descendants when come to retirement planning.

I told him that my case will be much different as I am only 49 and still have two kids studying and furthermore may still have 30+ years to go if GOD is kind to me ( Singaporeans’ average life expectancy…link). I will need to be more conservative and “kiasu” than those who retire at the age of 60+, with inflation in mind as well.

I think most of us would want to have a 100% replacement of active income to passive income as the ultimate goal of F.I before saying goodbye to your boss.

Could You Be Saving Too Much For Retirement? (from

“Most people are told that in retirement they’ll spend about 80% of what they earned in the year before retirement and they should save enough to fund that level of spending. The theory behind the 80% rule is logical. You’ll need less money in retirement, because you won’t be commuting to work, having payroll taxes withheld, and incurring other work-related expenses. Studies by Aon Consulting support this rule of thumb.
A study by T. Rowe Price in 2014, however, concluded the 80% rule might be too high for many people.
The study surveyed retirees and found on average they were living on 66% of their preretirement incomes. Yet 57% said they were living as well or better than when they were working, and 85% agreed that “I don’t need to spend as much as I did before I retired to be satisfied.”

How much do you really need for your retirement? Is there any rule of thumb?

Guess this is the most common question one will get in planning for retirement but it is also the most difficult question as it’s very subjective base on the retirement lifestyle you desired and want to have. 

Few important issues will be having a fully paid house because the monthly mortgage will be a major cash outflow and also a comprehensive hospitalization insurance coverage as hospitalization bill may cause and make a dent to your saving.

Few articles to share on retirement planning….

The Multiply By 25 Rule and 4 Percent Retirement Rule (from

3 Serious Problems With the 4% Retirement Rule (from

Retirement Planning In Singapore: How Much Do I Need To Save And Invest To Retire At Age 55? (from

How Realistic Is An Early Retirement Goal In Singapore? (from


Just for Fun!

If you want to know how much you can spend base on your current portfolio value, rate of returns, inflation and years of retirement.

Try this out: Retirement Withdrawal Calculator (link :

I try to play with it by punching the figures  of total portfolio value, rate of return ( 5.5%) , inflation (2%) , years until retire (0) , Numbers of year in retirement ( 35 ).

Wow, I can spend $167K per year (adjusted for inflation) for next 35 years...

Well, one will need to be very careful in playing with such figures as inflation will not be static at 2% and the investment return will also not always be consistent at 5.5%, what happens if we have “ Stagflation “ ? (from  or your portfolio value may drop by -50% during the global financial crisis.

Is better to be safe (kiasu) than sorry, have more buffer will be good ..ok ok, I hear you, I will spend more during this Chinese New Year !!

Hahaha, :D … Wishing all A very Happy  New (PIG) Year!  May peace and love fill your heart, beauty fill your world, and contentment and joy fill your days !!!

Cheers !!


  1. You are still in Team "Earn" More even you already FIRE! :-)

    1. Hi Uncle CW8888,
      Yah, earn more , save more and invest when opportunity knocks ..!
      Cheers !! :D

  2. I retired at 48. From my experience, $2K per month is more than enough for me and to pay all bills. Every year, I still have some left from my passive income.

    1. Hi Henry,
      Glad to know that .. yah , sometimes is matter of how much we spend and not how much we earn ... kind of using behavioral science ..:D
      Cheers !!

  3. Happy CNY, Gong Xi Fa Cai.
    You have built very strong 现金流

    1. Thanks Ali, wishing you Gong Xi Fa Cai and Happy 人日!!
      Cheers !!

  4. Find the guest posting sites list or Guest blogging sites list verified With categories like Health, Fitness, Digital Marketing, Web Design.


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