SINGAPORE: A 53-year-old man who returned to Singapore after being abroad for years reportedly has $800,000, with no CPF and no flat. A friend of his took to an online forum to gather information on how long Singaporeans think he will be able to tide himself over in Singapore with the amount he has saved.
“If a person is single with no outstanding loans, how long do you think $800,000 can last?” This was the title that a concerned friend gave a post he published in an online forum on Tuesday (Feb 25). In the post, the writer shared some context. “He is single and both his parents have passed on,” he shared.
“He currently has $800,000 in his bank account. His CPF has no money because he all along stayed overseas for the past few decades. He doesn’t have an HDB flat. He is currently retired and not working. He (has also decided) not to (look for) a job due to his personal preference.”
This then led the concerned friend to ask Singaporeans what they would do if they were in his friend’s position. He also wrote, “He is qualified to rent those 1-room whole flats from HDB paired up with another single because he is unemployed and he just needs to pay about $20 monthly rental for that one-room flat. (The other single flatmate pays the other $20 rental). A one-room HDB flat also has lots of yearly U-save utility rebates.
“With his $800,000 savings currently deposited into bank FDs and Singapore savings bond, if he pays $20 monthly rental to rent one of those one-room HDB rental flats, do you think his $800,000 savings is sufficient to last at least another 30 years until he is 83 years old?”
The writer then cited an old report by CNA which stated that the life expectancy for residents in Singapore was 83 years in 2023.
The writer continued saying, “Or should he take out $500,000 from his $800,000 to buy an HDB flat to rent out for regular passive income and put the remaining $300,000 into bank FDs?”
Many responded to the post with their two cents. A handful encouraged the man to go for the option of buying a flat. “Please don’t do those HDB singles rental,” said one. “The men that he would have to room with have a high chance of being unpleasant to live with, either can’t hold a job (even a basic one) and/or ostracised by family. Dregs of society type. Buy a two-room flat and invest the rest. Why live with strangers if you can avoid it…”
“My personal opinion is I would take option four for adequate retirement as expenses in the next 30 years will increase. As long he’s the type who is not show-offy, he can do a bare minimal lifestyle. $800k is doable,” a second wrote. However, another person responded to this comment arguing that healthcare is another important factor to consider.
Still, another wrote, “Even with $800k at 53 years old, don’t think it’s enough as I still have another 20 to 30 years ahead. I would still wanna find a job to work till I can’t.”