How Much Should You Have To Retire In Singapore?
Most Singaporeans don't start planning for retirement until their late 30s. Here's why you should start earlier.
How much is enough to retire in Singapore? There isn’t a cookie-cutter method of calculating how much you need to retire. This is highly dependent on variables like what kind of lifestyle you’d want to lead in your retirement, your health, and so forth.
So how do you calculate your retirement budget?
First, you calculate how much you usually spend in a year. Do this by creating a budget to track your expenses. One rule of thumb says that you should have 70-80% of your preretirement income after you finish working, but some are saying that even this might not be enough.
Why? In early retirement, spending doesn’t slow down, especially with many new retirees spending more on travel.
How much is enough to retire in Singapore? How much should you be saving now?
The official retirement age in Singapore is 62, and the average life expectancy is 83. That’s about 21 years of retirement. CPF monthly payment comes in at around 65 years old.
For example, let’s say you spend around S$1,500 a month. That means you’ll need S$18,000 a year, or S$378,000 to be able to retire comfortably for 21 years.
But that figure doesn’t take into account the cost of inflation. Prices tend to increase by 1-2% every year. Also take note that Singaporeans, on the average, have good health until around 73.
Seedly has calculated that if you want to retire at 62, you’ll need to save:
- S$1,361/month if you start at age 25
- S$1,432/month at age 30
- S$1,544/month at age 35
- S$1,725/month at age 40
- S$2,032/month at age 45
- S$2,620/month at age 50
The earlier you start saving for retirement, the easier it will be in the long run. But most Singaporeans don’t start planning for retirement until their late 30s.
There really isn’t a one-size-fits-all approach to figuring out how much is enough to retire in Singapore. But if you start saving and planning early, future you will definitely thank you for it.
To help you calculate how much you’ll need in retirement, there are plenty of tools online to help you. Try AsianMoneyGuide’s own retirement calculator.
We hope this article on how much is enough to retire in Singapore was helpful!
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