Common number: 1 million
Yearly expense: 40 k
How much you can last: 25 years
Assume you have 1 million at 55 years old, you can spend monthly 3333.33 (good numbers) for 25 years which means you must died at 80 years old excluding interest on fixed deposit.
If you include the interest from FD (4% annually for 1 million), you will get 40 k of interest per year.
Hoo la la, so you no need to become beggar after 80 years old.
Or
You can spend extra 3333.33 per month.
Above scenario is rough estimate only.
Personal Goal:
Assume no debts when retire. ( no car debt, no house debt : both debts currently is killing me, 10 more years I will be free of both debts when I am 53 years old )
Monthly Spending
Breakfast - RM 5 x30 = 150
Lunch - RM 10x30 = 300
Dinner - RM 10x30 = 300
Handphone RM 30
Streamyx RM 120
TNB - RM 60
Water - RM 10
Petrol - RM 200
Entertainment - RM 30 ( Watch movie 1 time per month)
Car maintenance - RM 100
Total: RM 1300 ( I can survive with RM 1300 per month) ... opps forget wife and 2 kids... he he he
Must read:
http://www.getrichslowly.org/blog/2016/11/14/how-much-to-save-for-retirement/