What's the Price ($) for my Retirement?

As I save, then invest (and then reinvest), I asked myself how much exactly do I need for my retirement. How much is it necessary for retirement in general?

Is there a magic number? If you ask yourself the question now, how much money do you think you need to retire?

Is it S$1M, 2M, or 5M? I believe the magic number really depends on the type of financial level you would like to achieve. The financial level will also depend on the lifestyle you would like to maintain during your retirement. I remember reading Adam Khoo's Secret of Self Made Millionaires which he articulated 4 levels of wealth.

Read: Four Levels of Wealth - Where are you at?

Many would be familiar with the various terms like Financial Security, Financial Freedom. Financial Independence, Financial Abundance, Absolute Financial Freedom etc. There are just too many terms trying to differentiate the level of wealth/ type of resources to support a standard of living.

Reaching Financial Security

What does Financial Security means to me? To me, it would mean 5 basic things that were paid without having to work to pay for them for as long as I live. These are the 5 things that are essential which includes 1) my home (mortgage); 2) utilities for the home; 3) food (home-cooked food, not fine dining); 4) basic transportation needs; and lastly 5) basic insurance cost.

I believe everyone will feel secured if they knew these 5 basic things were covered.

Short term goal - Financial Security

Most of us need a target to work towards. Without a goal in mind, it is difficult to take actions or plan for anything. Before I reach Financial Security, there is no point talking about Financial Freedom. Achieving Financial Security becomes my "shortest term goal".

Expenses

I mentioned the 5 basic things. So exactly what is my current home loan payment? Next, what is my utility bill each month? Next, how much money do I spend on food? Next, how much do I spend on basic transportation? Last, the amount of money paid for my insurance cost.

Let me estimate my expenses:

1. Home Loan Payment - S$2,269 monthly
2. Utilities - S$300 monthly
3. Food - S$900 monthly
4. Transportation - S$160
5. Insurance - S$884.36

Total monthly expense: S$4.513.36
Total expense in a year: S$54,160.32

So what's the price for my Financial Security?

I would need to have S$54,160.32 a year to cover these items without working. From my calculation, I would need the following amounts in my portfolio with the respective yields to achieve Financial Security:

5% yield - S$1,083,206.40
5.5% yield -  S$984,733.10
6% yield - S$902,672

This gives me a rough estimate and a goal to work towards.I would need to accumulate slightly above S$900k to have that S$54,160.32 a year for the rest of my life.

That will be the basic price for my retirement.

What is your price ($) for retirement then?