How much must be earned in a life time
How much must be earned in a life time to live in paradise? Take an average 4 roomer two kids family. In his life time he must spend these money other than the normal living expenses. His flat will cost him $500k or more when fully paid up. His Medisave that he cannot touch will be at least $30k. His two kids, if lucky enough to get into university locally, total cost for each upon graduation would easily be $300k. GST at 7% for a $4k monthly expenditure for 50 years will come to $148k. S&C at average $50 pm for 50 years will be $30k. And if he owns a small car, changing one every 10 years, or 5 cars in his lifetime, he will spend at least $300k at $60k each. The above adds up to a cool $1.6m. Even without owning a car, the amount is $1.3m. This he must have in addition to what he needs to live daily. At a simple $3k pm for 50 years it will add another $1.8m to his total budget. So an average Singaporean family will spend $3.4m in their life time. A very conservative number. And he could count himself lucky if he does not need to be hospitalised. One entry could empty his Medisave or more. The cost will go up for those who bought bigger houses and cars. A job and a steady income is crucial to keep an average Singaporean alive. it is amazing that we could go on for so long and still aspiring to be more prosperous and to pay more for our standard of living. Singaporeans born today would easily need double or triple that amount to get by. Would the system be able to pay them that kind of money or would Singaporeans still command that kind of premium in a competitive world market of the future? When I look at our Ah Beng, Ahmad and Muthu, and their counterparts in other countries, they are not much different. And when they put out their best to compete with us, either their income will go up or ours will go down. A new level will be found. Would ours still defy the odds and move up or will the law of diminishing returns drag us down?