How Much Do You Need to Retire in Singapore?

June 19, 2025

Planning for retirement is about making sure your future self can live comfortably, on your own terms. Here’s how to calculate your retirement needs, step by step.

Retirement planning is a critical financial goal for many young and mid-career professionals in Singapore. With rising life expectancy and living costs, it’s essential to start early and plan thoroughly.

This guide outlines how much you likely need by age 65, how to achieve that goal through smart saving and investing (leveraging Singapore’s unique schemes like CPF, SRS, etc.), and how to execute your plan step-by-step and build a foolproof retirement strategy.

How Much Do You Need to Retire by Age 65?
Factors That Influence Your Retirement Plan
How to Reach Your Retirement Goal
How to Execute Your Retirement Plan
The Best Time to Start Investing Was Yesterday

How Much Do You Need to Retire by Age 65?

Singaporeans enjoy one of the world’s highest life expectancies—about 83 years on average (around 81 for men and 86 for women). With the official retirement age rising to 65 by 2030, you should plan for roughly 20–30 years of retirement income after 65.

To estimate how much money you need by age 65, consider the following common approaches.

25× Rule / 4% Rule

A popular rule of thumb is to save at least 25 times your expected annual spending in retirement. This corresponds to the 4% Rule, meaning you could withdraw about 4% of your nest egg in the first retirement year (and adjust for inflation thereafter) without running out for approximately 30 years.

Example: If you plan to spend S$40,000 per year in retirement, you’d aim for S$1,000,000 (25 × 40k). This method is a quick gauge but assumes about 30 years of steady spending. If you expect a longer retirement or rising expenses, you may need more.

“Monthly Expenses × Years” Method

Alternatively, estimate your total needed funds by multiplying your expected monthly expenses by the number of months in retirement.

For example, if you desire S$2,000 per month* at retirement and anticipate 20–25 years of retirement, you’d need roughly S$480,000–$600,000 in today’s dollars (S$2,000 × 12 months × 20–25 years).

(*Note: this calculation doesn’t account for inflation, so plan for more.)

Income Replacement Ratio

This targets about 70–75% of your final working income annually in retirement. For instance, if you earn S$4,000/month (S$48k/year) before retirement, you might aim for ~$3,000/month in retirement. Over 20 years of retirement, that implies on the order of S$650k–$800k total needed. (Women, who tend to live longer, should budget toward the higher end of that range.)

General Benchmarks

One survey estimated that ~S$1 million in savings is needed to retire “comfortably” in Singapore. In terms of monthly spending, retirees today spend anywhere from S$1,200 (basic) to S$3,500 (comfortable) per month. As of 2023, an average retiree spends approximately S$2,000 per month.

Given future inflation (2–3% annually), that average could rise to around ~S$3,000 per month by the time today’s professionals retire. Your personal target will depend on the lifestyle you desire.

Sample Calculation (Income Replacement)

Suppose you plan to retire at 65 and expect to live until 85 (20 years in retirement). If your current income is S$5,000/month and you aim to replace 70% of that in retirement, you’d need about S$3,500/month. That’s S$42,000 per year. Over 20 years (not yet adjusting for inflation), the total funding required is roughly S$840,000 (42k × 20).

If you follow the 25× rule for a 30-year horizon, you might target closer to S$1 million. These figures would need to be higher if you want a buffer for longer life or rising costs.

Factors That Influence Your Retirement Plan

There are several variables that will shape how much you need in retirement:

Lifestyle

Whether you envision a simple, quiet retirement or one filled with travel and hobbies, your lifestyle goals will largely determine your monthly budget. A globetrotter will need far more than a homebody.

Retirement Age & Longevity

Retiring at 60 instead of 65 means funding five extra years — potentially over S$150,000 more. And with life expectancy in Singapore at 83 years, you may need to stretch your savings across 25 to 30 years.

CPF Payouts

CPF LIFE provides lifelong monthly payouts from age 65, helping cover part of your expenses. For example, if your CPF pays S$1,600/month and your goal is S$3,000/month, you’ll need to fund the remaining S$1,400 from your own savings or investments.

Healthcare Costs

While MediShield Life covers basic needs, additional insurance (like Integrated Shield Plans or CareShield Life) may be necessary. Medical costs often rise faster than inflation, so it’s wise to set aside funds for premiums, out-of-pocket bills, and unexpected health events.

Inflation

Even with modest inflation (2–3% annually), the cost of living can double in 20–25 years. That means today’s S$3,000/month could become S$6,000 or more by the time you retire. Your investments should aim to outpace inflation, or your purchasing power may shrink.

Housing & Family Commitments

Will your mortgage be fully paid off? Will you downsize or rent out a room? These choices impact your income needs. And if you’re supporting elderly parents or children in school, factor that into your retirement planning too.

How to Reach Your Retirement Goal

Achieving a large retirement sum might seem daunting, but with discipline and smart strategy it’s attainable. This section covers saving and investing tactics, asset allocation at different life stages, and Singapore-specific tools to help you grow your wealth.

Asset Allocation by Age

Asset allocation—how you divide your money among stocks, bonds, and other assets—should evolve as you age and your risk tolerance changes. In general, younger investors can afford a heavier allocation to stocks for growth, while older investors shift toward bonds and stable assets to preserve capital.

A common guideline is the “100 minus age” rule (or more aggressively, 110 minus age) for the percentage of stocks in your portfolio. Here’s an approximate breakdown:

Age (Life Stage)	Equity (Stocks) Allocation	Fixed Income (Bonds) Allocation
20s (Early Career)	~90% equities, 10% bonds	(Very aggressive – long horizon)
30s (Mid Career)	~80% equities, 20% bonds	(Growth-focused, start adding some stability)
40s (Peak Earnings)	~80% equities, 20% bonds	(Still growth-oriented, but monitoring risk)
50s (Pre-Retirement)	~60–70% equities, 30–40% bonds	(Balancing growth and capital protection)
60s (Near/At Retirement)	~40% equities, 60% bonds	(Conservative, income-generating focus)

These are just guidelines—your ideal mix depends on your risk tolerance and goals. The general rule: take more risk when you’re young, then dial it down as you near retirement. In your 20s–30s, an 80–90% stock portfolio can work. By your 50s, shifting to ~60% stocks adds stability. Near or in retirement, a more conservative 40/60 mix helps protect your nest egg from market shocks.

Beyond CPF, the Supplementary Retirement Scheme (SRS) is a powerful way to grow your retirement savings while saving on taxes. Contributions (up to S$15,300/year for Singaporeans and PRs) reduce your taxable income, and investments made through SRS grow tax-free. Withdrawals are only 50% taxable and can be spread out over many years, making it highly tax-efficient in retirement. Just note that early withdrawals incur penalties, and idle SRS cash earns just 0.05% p.a.—so investing your SRS funds is key.

How to Execute Your Retirement Plan

Retirement success isn’t just about knowing what to do — it’s about turning that knowledge into action, consistently, over decades. Here’s how to put your retirement plan into motion:

Set clear goals: Define your target retirement age, desired monthly income, and lifestyle expectations.

Assess your current finances: Calculate how much you’ve already saved, how much you’ll need, and the gap to close.

Create a realistic budget: Prioritise saving and investing by trimming non-essential spending.

Automate savings and investments: Set up monthly GIRO transfers to a Syfe portfolio to stay disciplined with dollar-cost averaging.

Invest smartly: Stay diversified, follow your asset allocation, and avoid market timing.

Manage risks: Build an emergency fund and ensure adequate insurance coverage to protect your plan.

Review regularly: Check your progress annually, adjust for major life changes, and rebalance your investments as needed.

Here are two investment strategies that could help:

For Long-Term Growth: Syfe Core Equity100

Syfe’s Core Equity100 portfolio is designed for younger investors like Jane who have time on their side. It offers 100% exposure to global equities, including US tech giants, China, and emerging markets.

What makes it different from simply buying an S&P 500 ETF? The portfolio uses Smart Beta and risk management strategies to reduce volatility while still targeting high returns.

If you’re in your 20s to 40s, this is the kind of portfolio that helps grow your wealth over decades, not just years.

For Stable Income: Syfe Income+

As you near retirement, you may prefer income and capital preservation. That’s where Syfe Income+ comes in.

This portfolio offers monthly payouts and stable returns (5.0–6.0% p.a.) by investing in high-quality global bond funds from PIMCO and other reputable managers. It’s a reliable way to supplement CPF Life or draw-down your savings gradually—especially useful for retirees who want to keep earning passive income.

You can also consider blending the two—investing in Core Equity100 during your growth years, then gradually shifting funds into Income+ as you approach retirement.

The Best Time to Start Investing Was Yesterday

Retirement may feel like a distant milestone, but every year you delay investing is a year of missed compounding returns. Whether your goal is $500,000 or $1 million, the key is to start planning early, invest consistently, and stay the course.

You don’t need to predict the market or wait for the “right time.” What matters more is building the right habit — and that starts with something as simple as setting up a recurring monthly transfer.

With Syfe, you can:

Invest for long-term growth with Core Equity100
Generate passive income through Income+
And most importantly, set up recurring transfers from your bank account to invest consistently through dollar-cost averaging

No market timing, no guesswork — just a disciplined plan that works in the background while you focus on living your life.

And now with the upcoming auto-invest feature, enabled through eGIRO, you will be able to set up recurring transfers straight from your bank account to your portfolio.

Explore Syfe’s Core Equity100 for long-term growth or Income+ for reliable income in retirement. Start today with Syfe’s recurring transfer feature to automate your investments and stay committed to your retirement goals. Small, regular contributions can grow into something powerful over time.