The 4% rule suggests that retirees can withdraw 4% of their portfolio in the first year and adjust for inflation thereafter. However, this guideline may not hold true in Singapore's unique financial landscape.
With a retirement portfolio of $2.5 million, many may assume they can comfortably retire. Yet, the high cost of living and potential healthcare expenses in Singapore could strain this amount.
It's essential to consider individual spending needs and inflation rates, as these factors can significantly affect the sustainability of retirement funds over time.