Why Singapore PME should consider to retire early

More than ten years ago, I had this chat with a client and he asked me if we would be chatting like how we always chatted after we retired and despite a ten-year age gap, we both shared a common wish: to retire early. The retirement age then was still 55 years old and cost of living in Singapore though was high was nowhere as high as now.

So at what age can we stop working in order to live a comfortable retirement life? Some people may have a difference of opinion: even if we can, why retire early?

Fast forward to the present day, our retirement age is now 62 but will soon be raised to 67. Our lawmakers' views may not be the same as the man in the street.

I think the two additional issues on top of financial means are health and lifespan. If you know your lifespan is 100 years old, will you retire at 67? But if you know yours is 70, 62 may also be a bit too late.

Health is the next question: if you are unhealthy and not fit, you may not be able to work beyond 55 or 62 but if you are healthy and fit, 67 may be too early.

For me, my own take is a bit different: If I am healthy and fit and have a lifespan of 85 (same as my grandfather), I would love to early semi-retire before 55 years old. I will not fully retire because if one stops working, all sort of illness like dementia will follow.

Semi-retirement is a good compromise because working can help maintain a healthy mind.

So, my other obstacle is financial means: can I have enough savings to ensure same standard of living? More than a year ago, I have decided to invest in a property in Johor Bahru where I will early-retire because the lower cost of living there will ensure I can retire earlier whilst maintaining the same standard of living.

Air is fresher too so will be good for health as well. My early retirement dream is driven by my wish to travel and see more of the world without being stressed by work.

But what about the man in the street? From my readings of statistics, the average Singaporean's lifespan is now between 80 and 85 years old.

And from news reports, the majority of Singaporeans cannot even meet the CPF Minimum Sum, so the higher lifespan may simply mean a "late" retirement is acceptable because financially for most Singaporeans, you may still need to work especially knowing that even if you have kids, your kids may not be able to support you financially as they have huge financial burden of their own.

And not many are like me (have a Malaysian wife), so a move to JB may not be an option. But as rich as he is, Fandi Ahmad is going to Batam. And I know there are more than 5,000 Singaporean households in JB. So, it seems for many, it is not when one should retire but where one should retire.

Many studies indicated that Singapore is one of the most expensive city to live in and if you cannot even meet the CPF Minimum Sum, you have to lower your standard of living or move out.

For the fresh graduate, my advice is do not waste your youth. Study hard when you are young and work even harder in your first 15 years.

Find a career that you truly enjoy and one which can leverage on your strength. Seek the advice of a good recruitment consultant if you are not sure.

If you can, save more to invest wisely. Only money can make you more money but you need your first bucket of gold to begin with.