One of the misconception about saving is how long it can last once we retired.
Assuming no investment and just plain saving bank. See Table 1.
|Table 1 : Without inflation adjustment|
Above is a simulation without inflation. How will this impact me ?
Assuming 3.5% inflation rate, the monthly absolute amount increases as Table 2.
|Table 2 : With inflation adjusted|
So how long can my S$1M last actually ? See Table 3.
Just below 16 years. After that i am on my own ...
For those who are curious on whatif Inflation hits 5%. The answer is 14 years.
That's how long S$1,000,000 can last.
22nd June 2014