Retiring in Singapore—a city renowned for its safety, efficiency, and world-class amenities—is a dream for many. Yet the very features that make it such an appealing place to retire also drive up the cost of living. This begs the million-dollar question: how much money do you actually need to retire comfortably in Singapore?
The truth is, there is no universal answer. A comfortable retirement looks different for everyone. It might mean sipping kopi in your neighbourhood kopitiam every morning, or jetting off to Tokyo and London during off-peak seasons. Some may wish to spend their golden years volunteering or tending to grandchildren, while others want to explore hobbies and pursue passion projects. Your lifestyle preferences, health, and financial obligations all shape the final figure.
In this guide, we’ll unpack the many moving parts of retirement planning in Singapore. Beyond just plucking a number out of thin air, we’ll help you define your ideal lifestyle, understand the tools available (especially your CPF), and build a strategic roadmap—complete with inflation-proofing tactics and diversification.
Defining Your Retirement Lifestyle: What Does “Comfortable” Mean to You?
Before you start crunching numbers, you need clarity on the kind of retirement you want. Is it modest and minimalist, or indulgent and globe-trotting?
According to a 2023 study by the Lee Kuan Yew School of Public Policy, a single elderly person in Singapore needs approximately $1,421 a month for a basic standard of living, while an elderly couple needs around $2,351. This covers essentials like food, housing, transport, medical needs, and some participation in community life.
But this “basic” lifestyle doesn’t include overseas travel, private healthcare, or extensive dining out. For a more aspirational retirement, estimates can go up to $3,000–$5,000 per month or more, depending on personal preferences.
Here’s a rough comparison:
| Lifestyle Type | Monthly Expenses (Estimated) | Features |
|---|---|---|
| Basic, no-frills | $1,400–$2,000 | HDB flat, public healthcare, local food, minimal leisure |
| Comfortable | $2,500–$3,500 | Occasional travel, restaurant dining, private insurance |
| Aspirational | $4,000–$6,000+ | Frequent travel, high-end dining, private club memberships, hobbies |
Projecting these monthly costs across 20–30 years of retirement (not unrealistic given Singapore’s life expectancy of 84 years), the numbers stack up quickly.
The Power of Your CPF: Singapore’s Retirement Backbone
For Singaporeans and PRs, the Central Provident Fund (CPF) forms the backbone of retirement planning. While complex at first glance, understanding how it works can greatly boost your confidence in your retirement strategy.
CPF LIFE: Lifelong Monthly Payouts
Once you reach 55, a Retirement Account (RA) is created using funds from your CPF Ordinary Account (OA) and Special Account (SA). At age 65, you’re automatically enrolled into CPF LIFE, a national longevity insurance scheme that provides monthly payouts for life.
How much you receive depends on the amount you set aside in your RA. As of 2025, the Full Retirement Sum (FRS) is $205,800, while the Basic Retirement Sum (BRS) is $102,900.
Here’s what you can expect in monthly payouts from age 65:
| CPF RA Amount at 55 | Estimated Monthly CPF LIFE Payout (from age 65) |
|---|---|
| $102,900 (BRS) | $600–$1,100 |
| $205,800 (FRS) | $1,120–$1,240 |
| $308,700 (ERS) | $1,630–$1,760 |
While these payouts are inflation-adjusted to an extent and guaranteed for life, they may only cover the basics. That’s where other savings and investments come into play.
Beyond CPF: Growing Your Retirement Nest Egg
Relying solely on CPF may be insufficient—especially if your retirement dreams extend beyond the essentials. To supplement CPF LIFE payouts, consider these additional avenues:
1. Supplementary Retirement Scheme (SRS)
The SRS is a voluntary scheme that offers tax incentives for retirement savings. Contributions are capped annually ($15,300 for Singaporeans/PRs), and withdrawals after the statutory retirement age are 50% taxable—offering significant savings for those in lower tax brackets post-retirement.
2. Private Annuity Plans
Offered by insurers, annuities provide guaranteed monthly payouts for a fixed period or life. These can act as a buffer against longevity risk (the risk of outliving your savings), and some come with added bonuses or death benefits.
3. Investment Portfolios
Your wealth should grow—not sit idle. Popular investment options in Singapore include:
- Exchange-Traded Funds (ETFs) for broad market exposure
- Unit trusts for professionally managed funds
- REITs for passive income from property
- Blue-chip stocks for long-term capital growth and dividends
- Government bonds and T-bills for safety and predictable returns
The right mix depends on your risk appetite and time horizon. The earlier you start, the more you can benefit from compounding returns.
The Inflation Factor: Why Your Money Needs to Grow
Inflation is the silent thief of purchasing power. An item costing $1,000 today might cost $1,300 or more in 10 years. While Singapore’s average inflation rate has hovered between 1.5% and 2.5% in recent decades, it can spike unexpectedly—as seen in 2022–2023.
Let’s say you plan to retire with $1 million at age 65. At 3% annual inflation, its purchasing power at age 85 will be reduced to just over $550,000 in today’s dollars.
To beat inflation:
- Invest wisely – Assets like equities and REITs tend to outperform inflation over long periods.
- Diversify – Don’t put all your eggs in one basket.
- Review your portfolio regularly – Adjust for changing market conditions and life stages.
Don’t leave your savings in low-interest accounts. Even CPF’s 4% return on the SA and RA is more protective than most bank deposits.
A Step-by-Step Approach to Retirement Planning
Ready to plan your retirement in earnest? Here’s a practical roadmap:
Step 1: Envision Your Retirement Lifestyle
Start by identifying your desired monthly retirement expenses. Be honest and factor in:
- Housing (mortgage-free or rental?)
- Healthcare
- Travel and entertainment
- Hobbies
- Contingencies (e.g. long-term care)
Multiply this by the number of retirement years you expect (e.g., 25 years from age 65 to 90).
Step 2: Assess Your Current Financial Health
- What are your CPF balances?
- Do you have other savings or assets?
- Any debts to settle before retirement?
- What’s your current income and savings rate?
This gives you a gap analysis—how far you are from your goal.
Step 3: Maximise CPF and Explore Other Tools
- Top up your Special Account (SA) for risk-free, compounded returns
- Consider the SRS for tax savings and investment potential
- Review insurance needs—especially Integrated Shield Plans
- Use CPF’s Retirement Sum Topping-Up Scheme to boost your loved ones’ CPF
Step 4: Build and Grow Your Investment Portfolio
- Allocate a portion of your income toward long-term investments
- Automate contributions if possible
- Rebalance annually to stay aligned with your risk profile
Step 5: Review Regularly and Adjust
Retirement planning isn’t a one-off task. Life changes—marriage, kids, career shifts—require adjustments to your plan.
- Review your finances annually
- Seek advice from a trusted financial adviser
- Stay informed on CPF policy changes and new schemes
Conclusion: Planning for Peace of Mind, Not Just a Number
Retirement is not a fixed destination but a personal journey. Instead of focusing solely on “How much is enough?”, reframe the question as “What kind of life do I want to live in retirement—and how do I build towards it?”
With Singapore’s robust CPF system, strategic investments, and a disciplined approach, even the high cost of living can be managed. Start early, stay consistent, and stay informed. Your future self will thank you.
Remember, you’re not just saving for retirement. You’re saving for freedom, dignity, and the ability to live life on your own terms.
