Living simpler, but can we do it?

PHOTO: Living simpler, but can we do it?

Living simpler, but can we do it?

So are you prepared to retire?

The more accurate question could be: Are you willing to downgrade your lifestyle? Each person's needs will be different, but will you be able to survive on $1,000 from a previous $5,000?

Mr Vasu Menon, OCBC's vice-president of wealth management for Singapore, says it's possible with a change of mindset.

"You will have to cut down on luxuries, and might have to take only public transport.

"I don't think enough people are preparing themselves for retirement. If you plan on taking two trips to Europe every year after retirement, you must accumulate enough money to do so, through saving and investing wisely."

Say you are now aged 30, and want to retire at 60 on $1,000 a month for 20 years.

You would have to set aside $567 monthly from now until you retire, according to the retirement calculator on DBS' website.

"Otherwise, you have to be realistic. Perhaps you have to take trips to neighbouring countries instead," says Mr Menon.

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