Why work hard and plan early for retirement? (UPDATED)

Reader said...
Actually retire also hard work to make it work well.

AK said...
Oh, I am working very hard in retirement.
Trust me, I know what you mean. ;)

(F.I.R.E. = Financial Independence & Retire Early.)

If you haven't listened to the song, listen, there is a hidden message.





Our conversation continues:

My reply:

Hi iwimsasl,

I believe that everyone's life can be and should be better.

I know people who belonged to the low income group who took affirmative action to change their lives for the better and I have shared some of their stories here in my blog too.

“If you are born poor it's not your fault but if you die poor it's your fault.” Bill Gates.





This is true especially in societies like Singapore where everyone has equal access to education and opportunities are available to those who are willing to work hard and look for them.

There is no point for the low income workers to complain or feel sorry for themselves. 

Unfortunately, many do and it doesn't change anything.

I see some complaining on FB all the time. 

They have time to complain, why not spend time to improve their lives?






Asking for CPF LIFE to start paying them earlier is unlikely to make a big difference in such an instance since there is probably not enough in their CPF-RA to last them very long. 

Pay them a monthly income from a smaller sum for life? 

The monthly payout has to be much smaller to be equitable. 

I don't think it is a reduction of only 7% or 8%.

Accumulating for only 5 years at 5% per annum (bearing in mind that the first $30K is paid 6% p.a. while the next $30K is paid 5% p.a.), CPF-RA money would only grow 27% while accumulating for 10 years, it would grow 63%!





So, with this understanding, we see that the monthly payout, proportionally, would have to be 22% lesser to be equitable if payout were to start at age 60 instead of 65.

The prudent thing to do for these CPF members would be to continue working for as long as possible, putting off retirement and allowing their CPF-RA money to accumulate for at least 10 years.






Unfortunately, for many low income workers who are much older, it might be the reality they must face as the probability for upward mobility dims for them. 

Younger low income workers who are physically and mentally whole should not give up.

I shared before in my blog that what pushed me to work harder in my younger days, holding 3 jobs at one time, working 7 days a week, and to plan early for retirement was mainly the fear of growing old and destitute. 

人无远虑, 必有近忧.

Many people just don't think ahead and I hope more people will.






Related post:
Worried you won't live to enjoy all your CPF?

What do we call people who want everything for free?

I just wasted half an hour of my life talking to someone on FB.

There are some people who have difficulties despite their best efforts to make ends meet. 

They might be handicapped in some way.

So? What to do? 

We should help these people.

However, there are those who are physically and mentally whole but are complaining day in and day out. 





These are usually the ones who keep asking why must they pay for this and why must they pay for that?

They want free education.

They want free transportation.

They want free medical attention.

They complain until sometimes I run out of patience.

Wah! A poem? 

Not bad, AK!





We are familiar with the saying "there is no free lunch in this world". 

If lunch also cannot be free, how can education, transportation and medical attention be for free?

Hey, AK. Why not? 

In some countries in Europe, really got such free things!

Alamak! 

Then, AK is the stupid one lor. 

Cham liao.

Please lah. 

AK not stupid.





Free education? 

Do these people think that the lecturers and tutors work for free? 

Do these people think that books grow on trees and the libraries are manned by altruistic house elves? 

Do these people think that the lights and machines are powered by magic and water flows clean and freely from Mount Faber?






Please lor.

All these have to be paid for.

If we wish to enjoy something, we have to pay for it. 

If we got it for "free", someone else is paying for it. 

Providing subsidies for financially struggling families is the caring thing to do but if we are not financially struggling, don't cry father, cry mother. 

Pay up!

What? 







We are financially struggling because we must pay for our car, our maid, our twice a year atas family vacations etc.?

Alamak, so, those tax payers who don't have a car, who don't have a maid and who don't go for atas vacations must subsidise our lifestyle, is it?


佛都有火.

So, what do we call people who want everything for free?

Related posts:
Do you need or want assistance?