Retirement Plans

[Another post that has been in draft for a while. Time to Publish.]

I was telling PL that my retirement plans have been derailed 3 times.

First I bought the condo.

Until I did, my retirement plans were on track. Work till I’m 62 or earlier if I can retire earlier. Live off my savings. Die.

But then I bought the condo, and I got a 27 year mortgage. I’ll be 75 when I pay off the mortgage. So far, it has been painless, but my mortgage payment could rise to 4 times what it is now. And interest rates are rising.

But I was still optimistic. If I really need to bail out, I could sell the condo to finance my retirement. It would be an investment.

Then I got married.

Okay, it wasn’t exactly a derailment of my retirement plans, but now there was the wife to think of, and while she could work 10 years longer, she might also need savings for her retirement. And it would be likely that she would outlive me for quite a while. So she would need more savings!

Maybe I could transfer my excess CPF to her account when I hit 55. If I still have excess. Or use my CPF to pay off my mortgage on the condo. If interest rate ever exceeds my CPF rate.

Then came the pregnancy. And the birth.

There’s expenses for the child, school, textbooks, uniforms, ECA…

At a recent course I had to do a self-introduction.

“Hi everyone. I am close to 55 and have been planning my retirement for over 10 years… then I got married and had a child.”

It got some laughs.

Then I got to thinking… The CPF annuity plan is called “CPF Life”. “Zoe” means Life. I have a retirement plan after all!


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