Reward 500 Tiger-coinsRetirement Savings Show a 3x Gap!
Previously, we discussed $DBS(D05.SI)$ Bank’s suggestion that S$550,000 is needed to retire in Singapore “S$550K to Retire in SG: Have You Planned Your FIRE Number?” and many tigers shared your own investment and savings plans for retirement.
But now, a new report from $HSBC Holdings PLC(HSBC)$reveals that wealthy individuals in Singapore believe they need S$1.87 million to enjoy a “comfortable retirement.”
To retire peacefully in Singapore, ordinary folks need to save S$550K, while the wealthy feel they need S$1.87 million. That’s a staggering difference — over three times more!
🧾 What Retirement Looks Like for Ordinary Singaporeans:
Let’s first look at the average person.
DBS analyzed data from 2 million customers and found that, based on current retirees spending around S$1,600/month, those retiring at age 65 in 2030 would need about S$550,000 to last 20 years.
That breaks down to just S$75/day — barely enough to cover food and utilities in high-cost Singapore.
💼 How the Wealthy Plan to Retire:
HSBC’s report paints a very different picture:
Wealthy Singaporeans believe they need S$1.87 million to retire with dignity — more than three times the ordinary estimate and well above global averages.
There’s a clear divide in retirement expectations between income groups.
Here’s how the affluent prepare:
Living Expenses: Up to S$4,000/month — more than double the average.
Healthcare: Preference for private hospitals and premium care.
Leisure: Regular overseas trips and high-end social events.
Legacy: Funds reserved for children's education or entrepreneurial pursuits.
What do you think?
Where do you see yourself — Ordinary? Middle Class? Affluent?
And do you agree with the retirement benchmarks set by these two banks?
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Comments
Everything has gone up.. food, housing, transportation etc etc. Nothing is as cheap as pre COVID time.
Hence we need to invest early to growth our wealth. Let the money works hard for us. Of course, at times, we need to reward ourselves for the hard work we had done. Travelling, concert etc - whatever that makes us happy.
@MHh
55万，是一个“够用”的数字，代表着节俭、稳定、务实的人生态度。就像DBS所说，平均S$1,600/月的开销，确实可以应付住HDB、搭巴士、去邻里诊所看病、偶尔和朋友喝杯茶——这就是许多新加坡人心中踏实、平静的退休生活。而我觉得，这个目标并不低，只是现实。
但看到HSBC说的187万，我反而更能理解那种“想活得更好”的心情。如果经济条件允许，谁不希望老了还能自由地出国旅游、享受高质量医疗、为孩子留下一点东西？对他们来说，“退休”不是退缩，而是终于可以专注在自己喜欢的生活上，那自然需要更多的资金支持。
我自己可能还在“中产”这条路上挣扎，说实话，55万会是我设定的“起跑线”，而187万是我默默想要追的“终点”。现实让我务实，但梦想让我努力。
我不完全认同任何一家银行的数字公式，但我认同一个道理：退休生活没有标准答案，只有你愿不愿意现在就开始为你想要的那个“老年版本的自己”做准备。
*The Idea:* Withdraw 4% of retirement savings annually to cover living expenses, without depleting portfolio over time
*Assumptions:*
- Retirement savings are invested in a diversified portfolio, such as a mix of stocks & bonds
- The portfolio generates returns, such as dividends, interest & capital gains
- withdraw 4% of the initial portfolio value each year, adjusted for inflation
*Benefits:*
- Provides stable income stream
- Allows us to maintain a consistent lifestyle
- Can help us plan expenses
*Caveats:*
- The 4% rule is based on historical data & may not perform well in all market conditions
- may need to adjust withdrawal rate based on individual circumstances, such as market performance or changes in expenses
- It's essential to review & adjust retirement plan regularly