Figuring S$1.0 million (backward and forward)

In a recent AC Nielsen survey, it was discovered that majority of the Singaporeans in the survey "feel they need over S$1MM to retire comfortably". To add on, I feel that the 'S$1MM' should not include the value of the primary housing (i.e for most Singaporeans, it is their HDB flat) that one owns, as it is an illiquid investment and cannot be monetized readily.

Indeed, I did my own sums and have the same conclusion as well. There are many ways and methods, such as setting up your own business, savings, investing and so on to achieve this retirement sum. Nonetheless, it is good to know the figures as a guide first of all.

Here is a table that shows the relation between $1.0 million and the % (returns or inflation %) over the number of years (10-30 years).For example, if an investor is confident and comfortable with achieving 7%-8% returns year after year, and he or she has 20 years' time frame, the net investible amount he or she needs to have at the beginning of the next 20 years is about S$200k-S$250k (reading directly from chart above- marked yellow color).

On the contrary, if a person has $1.0 million now and keeps his or her money (under the pillow) without investing, then inflation will 'chew' away the principal sum slowly. For example, assuming inflation is 3% per annum, the $1.0 million sum will be worth only slight more than $400k in 30 years' time. (Refer to chart above- marked red color)

“Invest in inflation. It's the only thing going up.”
-----Will Rogers (American entertainer, famous for his pithy and homespun humour, 1879-1935)