How Much Money Do I Need To Retire Comfortably In Singapore?

Key Takeaways

To retire comfortably in Singapore, plan for a retirement period of 20-30 years, considering factors like lifestyle, healthcare costs, debts, inflation, and investment returns. For a basic retirement, you might need around $600,000, while a comfortable retirement could require closer to $1,000,000. Utilize CPF and SRS schemes, diversify investments, and regularly review your retirement plan to ensure financial security.

Retirement is a significant milestone, marking the transition from years of work to a period when you can finally enjoy the fruits of your labour. However, in a city like Singapore, known for its high cost of living, planning for retirement can take time and effort.

Understanding how much money you need to retire comfortably in Singapore is crucial to ensure a secure and fulfilling retirement.

Singapore’s Official Retirement Age

The official retirement age in Singapore is 63, with the re-employment age extending up to 68. This relatively low retirement age, combined with one of the highest life expectancies in the world (83 years for men and 87 years for women), means that many Singaporeans will need to plan for a retirement period that could last 20 years or more.

In Singapore, people can start drawing on their Central Provident Fund (CPF) savings from age 55, though this will be subject to specific withdrawal limits and regulations. It’s essential to familiarise yourself with these rules to maximise your retirement funds.

Additionally, the government has introduced the CPF LIFE scheme, an annuity plan that provides lifelong monthly payouts, ensuring that you don’t outlive your savings. This scheme is a cornerstone of retirement planning in Singapore, offering a safety net against the financial uncertainties of a long retirement.

Factors Influencing Retirement Savings

Several factors influence how much you need to save for retirement in Singapore. Let’s get into these factors:

Lifestyle Choices

Your desired retirement lifestyle plays a significant role in determining your retirement savings. If you plan to travel frequently, dine out often, or engage in expensive hobbies, you’ll need to save more. On the other hand, a simpler lifestyle will require less savings.

Health Status

Healthcare costs are a critical consideration in retirement planning. As you age, medical expenses typically increase, making it essential to have a substantial healthcare fund. Singapore’s healthcare system is excellent, but it’s costly. Ensuring you have enough to cover medical expenses, including potential long-term care, is crucial.


Entering retirement with outstanding debts can significantly impact your financial security. It’s advisable to clear any existing debts before retiring to avoid the burden of repayments during your retirement years.


The cost of living in Singapore is consistently rising, and inflation can erode the purchasing power of your retirement savings over time. It’s vital to factor in an inflation rate when planning your retirement savings to ensure your money retains its value over the years.

Financial planners often recommend adjusting your retirement savings target to account for an average annual inflation rate of around 2-3%.

Investment Returns

Your investments’ performance can significantly impact the amount of money available for your retirement. Higher returns can increase your savings, while poor performance can deplete them.

It’s essential to have a well-diversified investment portfolio and regularly review it to ensure it aligns with your retirement goals. Consider consulting a financial advisor to help manage your investments effectively.

Government Schemes and Benefits

Leveraging government schemes such as the Central Provident Fund (CPF) and Supplementary Retirement Scheme (SRS) can enhance your retirement savings.

Understanding how to maximise these benefits is crucial. CPF LIFE, for example, offers lifelong payouts that can provide a steady income stream during retirement.

Family Responsibilities

Consider any ongoing financial support you may need to provide to family members, such as elderly parents or dependent children. These responsibilities can affect your retirement savings, requiring you to allocate more funds to ensure both your retirement and your family’s needs are met.

Social Activities and Hobbies

Retirement can be an opportunity to pursue new interests or hobbies, which may require additional funds. Whether it’s travel, learning new skills, or engaging in social activities, these pursuits can add to your retirement budget. Planning for these expenses ensures you can enjoy your retirement without financial stress.

Estimating Monthly and Annual Expenditure in Retirement

Estimating your monthly and annual expenditures is a crucial step in determining how much you need to retire comfortably. According to data from the Department of Statistics Singapore, the median monthly expenditure for retirees aged 62 and above is approximately $1,379. This figure includes essential and non-essential expenses such as food, housing, transportation, and recreation.

For example, housing typically costs around $500 per month, food and groceries about $300, utilities $100, transportation $100, healthcare $200, recreation $100, and miscellaneous expenses about $79. These figures are averages and can vary based on individual lifestyles and preferences.

It’s essential to account for inflation, which can erode the purchasing power of your savings over time. Therefore, your retirement savings should be sufficient to cover your estimated monthly expenses, adjusted for inflation, over your retirement period.

Calculating the Total Amount Needed for Retirement

To calculate the total amount needed for retirement, you can use a simple formula: multiply your estimated annual expenses by the number of years you expect to live in retirement.

For example, if your annual expenses are $16,548 (monthly expenses of $1,379 x 12) and you plan for a 20-year retirement, you’ll need approximately $330,960.

However, this is a basic estimate. It’s essential to include a buffer for unexpected costs, such as medical emergencies or significant life events. Financial experts often recommend having enough savings to cover at least 25 years of expenses to provide a safety net against uncertainties.

  • For a basic retirement, assuming 20 years of expenses, you need around $330,960.
  • For a more comfortable retirement spanning 25 years, you might aim for approximately $413,700.
  • If you plan for a luxurious retirement over 30 years, you need around $496,440.

A recommended target is often at least $600,000, adjusted for inflation and additional expenses, to ensure a cushion for rising costs and unforeseen expenses.

Is $600,000 Enough to Retire in Singapore?

The question of whether $600,000 is enough to retire in Singapore depends on several factors, including your lifestyle, health, and financial obligations.

$600,000 may suffice for a basic retirement, where you live modestly and avoid significant expenses. However, for a more comfortable retirement that includes travel, dining out, and engaging in various activities, you might need closer to $1,000,000.

With $600,000, you can cover basic living expenses such as housing, food, utilities, and healthcare. It also allows for an emergency fund, setting aside a portion for unexpected medical bills or emergencies.

It also provides some protection against inflation, ensuring your savings grow to keep up with rising living costs. Additional funds can be allocated for travel, hobbies, and other non-essential activities.

It’s also crucial to factor in any debts you might have. Paying off debts before retirement can significantly reduce the financial burden and stretch your savings further.

Additionally, consider the potential impact of inflation, which can erode your purchasing power over time.

If you need financial support to boost your retirement savings or manage expenses, Horison Credit can help. We offer tailored loan solutions to individuals to meet their financial needs. Apply now to secure a loan that fits your requirements and ensures a comfortable retirement.

Supplementary Retirement Scheme (SRS)

The Supplementary Retirement Scheme (SRS) is a voluntary scheme that complements the Central Provident Fund (CPF) to help Singaporeans save for retirement. The SRS is an excellent tool for boosting retirement savings, offering both tax advantages and the potential for investment growth.

However, to ensure your funds are protected, it’s essential to understand the associated risks, particularly with investments. The SRS offers several benefits:

  • Tax Incentives: Contributions to the SRS are eligible for tax relief, reducing your taxable income. The annual contribution cap is $15,300 for Singaporeans and Permanent Residents and $35,700 for foreigners.
  • Flexible Withdrawals: You can withdraw your SRS savings at any time, but only withdrawals made after the statutory retirement age are subject to a 50% tax concession.
  • Investment Opportunities: SRS funds can be invested in various financial products, including stocks, bonds, and mutual funds, potentially growing your retirement savings.

Tips for Effective Retirement Planning

Effective retirement planning involves more than just saving money; it requires a strategic approach to ensure financial security. Here are some tips to help you plan effectively:

  • Start Early: The earlier you start saving, the more time your money has to grow. Take advantage of compound interest by starting your retirement savings in your 20s or 30s.
  • Diversify Investments: Spread your investments across different asset classes to reduce risk. Consider a mix of stocks, bonds, real estate, and other investment vehicles to balance potential returns and risks.
  • Utilise Government Schemes: Take full advantage of CPF and SRS schemes to maximise your savings. These programs offer significant benefits, including tax relief and guaranteed monthly payouts.
  • Regularly Review Your Plan: Life circumstances change, and so should your retirement plan. Review and adjust your plan regularly to ensure it aligns with your current financial situation and goals.
  • Seek Professional Advice: Consulting with a financial advisor can provide valuable insights and help you make informed decisions. A professional can help you interpret complex financial products and create a tailored plan that suits your needs.

Making the Right Financial Decisions for Your Retirement

Planning for retirement in Singapore can seem daunting due to the high cost of living and various financial factors to consider. However, with proper planning and early savings, a comfortable retirement is achievable.

If you’re looking for ways to optimise your financial strategy or need a loan to manage your finances better, consider reaching out to Horison Credit. We offer personalised loan solutions to help you meet your financial goals. Apply now to see how we can assist you in securing a stable and comfortable retirement.


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