A favorite among retirees is Australia where you get to live in the suburbs and enjoy the tranquility. Inversely, there are also more expensive places to retire. If you’re living on CPF Life minimum sum in these places, it may qualify you for a very comfortable lifestyle while you may compromise other aspects such as safety and political stability. Example, if you were to retire in Johor Bahru or Batam, the cost of living there may be less than half of Singapore’s. That being said, the choice of your country or city to retire can affect your retirement planning. Indeed, if you could, don’t you wish to spend your retirement in a nice beach resort while sipping champagne? Then there is of course the need to be close to your love ones which may outweigh that aspiration. This could also be a backup plan because a basic needs for retirement in Singapore could be an extravagant lifestyle in other countries. It is also a question of environmental and economic safety, where you feel most at home, and how much it will cost. The choice of where to spend your retirement is not just a question of aspiration. Where do you want to spend the rest of your life at? It’s always good to plan ahead and to factor in such cost for the time to come. Dining in at restaurant, eating out at coffeeshop/hawker centre) Expectations for standard of living (e.g.How often you will be travelling overseas.Whether you want to own a private vehicle or travel via public transport.While you still want to be actively engaged in your job, you may want to do it at a slower pace.Įssentially, here are some factors to consider: For that, a minimum sum may not be enough unless you have sufficient cushion set aside elsewhere other than in your CPF.įor others, retirement is just a phase where you take things slow. You no longer want to be working and you prefer to spend your retirement days focusing on doing voluntary work, engage in a hobby, or just travelling around the world to experience life. One may potentially need an additional $1,000 or more a month in order to sustain that privileged lifestyle.įor some, retirement means a complete step down from the working life.

When it comes to the list of basic necessities, left out of that list were air-conditioning at home and a car. What type of lifestyle are you looking to lead during retirement? A group of professors from our local universities has recently done a survey, they found that in general, a single retiree today needs around $1,379 each month in order to afford basic necessities. If you decide to retire at 55, then the years between now, if you’re 30 years old for example, indicates you have another 25 years to accumulate your retirement war chest. Second, it will tell you how much more time you have left before it starts. For instance, if you want to retire at age 55 and your life expectancy is 85, you need to have 30 years’ worth of adequate saving in order to retire, assuming you live through them.

The first question is “when?”, i.e., when do you want to start your retirement? And knowing the age when you want to start your retirement has two implications.įirst, it will give you an estimation of how much retirement savings you need. So how much do one need to save for retirement to be able to retire comfortably in Singapore?īefore we conclude with a realistic assumption, here are some key questions you can ask yourself first: You may be reading this now because you may be preparing towards the final phase in your life: Retirement. For many of us, we have been there and done that for 3 or 4 of these life phases. These are the five phases of life that most Singaporeans go through. How Much Do I Need To Retire in Singapore?Ĭompleting tertiary education, getting your first job, getting married, having children, and then retirement.

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