S$550K vs S$1.87M: 3x Gap! How Much Do You Really Need?
Retirement 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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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
The affluent wants overseas trips which has no upper limit because it depends on how well and comfortable one wants to do it and the number of trips. The main thing is legacy funds. A good man leaves an inheritance for his descendants.
I think the real dealbreaker would be the health of the person. Healthcare is extremely costly and can quickly use up wealth and it affects the rich or the poor. A sick man will burn great wealth regardless and having insurance with a good retirement sum is crucial here.
I see myself as middle class[LOL]
I see myself as middle class, aiming for a balance between modest living and some lifestyle flexibility. I want to afford quality healthcare, travel occasionally, and not stress over daily expenses. My target is likely closer to S$1 million or more, depending on inflation and how long retirement lasts.
Both numbers serve different purposes. It is important to define our own lifestyle goals and risk appetite. For me, retirement planning is not just about survival, but securing peace of mind and freedom of choice.
@Tiger_SG @Tiger_comments
I see myself as a middle class Singaporean. I normally cook at home but sometimes treat myself and my family to nice mid range restaurants like Din Tai Fung and Penang Place. I love to travel but keep to economy class airfares, and mid range hotels.
I love to hoard my CDC vouchers and spend them carefully.
I dream of retiring early but know that it is important to invest wisely in dividend stocks, Index ETFs and REITs to build passive income.
My target - SGD 1 million in savings using 1M65 as my CPF benchmark.
Retirement in Singapore isn't about hitting a magic number. It is more about creating a life where I can afford both hawker feasts with occasional omakase splurges. It is about living a modest but joyful lifestyle.
@Tiger_SG @Tiger_comments @TigerStars @CaptainTiger
@Tiramisu2020
富有的新加坡人認爲他們需要187萬新元有尊嚴地退休-三次以上普通估計，遠高於全球平均水平。
不同收入羣體的退休期望存在明顯差異。
以下是富人的準備方式：
生活費：高達4,000新元/月——是平均水平的兩倍多。
醫療保健：偏好私立醫院和高級護理。
閒暇：定期出國旅行和高端社交活動。
遺產：爲子女教育或創業事業預留的資金。
Moderate: SGD 4,000–6,000
Comfortable: SGD 6,000–10,000
Housing: Paid-off home (e.g., HDB flat). Rentals (SGD 2,000–4,000/month) would reduce sufficiency.
CPF LIFE: Reduces savings need by SGD 300,000–600,000 over 25 years (SGD 12,000–24,000/year).
Inflation-Adjusted Needs (25 years):Basic: ~SGD 799,000 (single) to SGD 1.6 million (couple)
Moderate: ~SGD 2.13–3.2 million (single) to SGD 4.26–6.4 million (couple)
With CPF LIFE (SGD 300,000–600,000), it’s just sufficient for a single retiree with a paid-off home and frugal living. Insufficient for a couple (SGD 1.6 million needed).
Moderate/Comfortable Lifestyle: Far too low, covering only ~7–11 years at SGD 4,000–6,000/month (no inflation). Inflation makes it unsustainable.
Conclusion: SGD 550,000 is barely enough for a single retiree with a basic lifestyle, a paid-off home, and CPF support. Not viable for couples or higher lifestyles.
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@Huat99