https://www.straitstimes.com/business/are-you-set-to-retire-comfortably-in-singapore
Are you set to retire comfortably in Singapore?
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The road to retirement requires immediate attention, says the writer.
ST ILLUSTRATION: CEL GULAPA
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Retirement planning
Published Aug 09, 2025, 06:00 AM
Updated Aug 13, 2025, 02:24 PM
SINGAPORE – You’re in your 50s, the kids are grown and off your hands, the mortgage is nearly paid off and a comfortable retirement beckons, but life’s next chapter can bring unexpected challenges.
A friend who thought she had more than enough to retire on had to stop work earlier than planned to care for her elderly parents and a dependent sibling.
Such surprises, along with longer life expectancy and higher living costs, can derail the best-laid plans, making preparations for your golden years more critical than ever.
The road to retirement requires immediate attention, from understanding how far your savings will stretch to making sense of the Central Provident Fund (CPF) and various government support schemes.
Healthcare becomes a key focus. A comprehensive insurance plan covering critical illness and long-term care is crucial, says Mr Harpreet Bindra, chief executive of HSBC Life Singapore. This can help offset the financial impact of unexpected medical emergencies and ensure access to necessary care without depleting your savings.
Ms Irma Hadikusuma, chief marketing and healthcare officer at AIA Singapore, reminds us that “retirement isn’t just a finish line; it marks the start of a new, potentially decades-long chapter in your life without an active income”.
So how much?
A nest egg of $1 million has long been a common aspirational retirement target. With this much in cash and liquid assets, a retiree can expect a comfortable withdrawal of more than $4,000 a month over 20 years after retirement.
Other retirement sums have also been bandied about – from $550,000 to $1.9 million.
Fortunately, CPF Life, a national longevity insurance annuity scheme, provides Singaporeans and permanent residents with a monthly income from age 65 for as long as they live.
If you hit 55 in 2025, you can give your retirement income from age 65 a boost if you plan for the current CPF Enhanced Retirement Sum of $426,000. Doing so will enable you to receive $3,300 a month.
A DBS study found that the median CPF payout covers over half the median expenses of its retiree customers.
According to the 2023 Household Expenditure Survey, households with only non-working individuals aged 65 or over spent an average of $2,349 per month.
This means aspirational needs will have to be supplemented by income-generating solutions such as unit trusts or other investments to complement the CPF payouts.
What constitutes “enough” is deeply personal.
“For some, it may include travel, dining outfrequently and pursuing hobbies. For others, it could simply mean covering essential financial needs without worry,” says Mr Bindra.
“What remains important to remember is that individuals need to plan not just for today’s cost of living, but for years to come.”
The focus shouldn’t be on hitting a universal number, but more on building a plan that is tailored to your needs and flexible enough to evolve through life stages. Integrating both wealth and health to help you face the future with confidence, he says.
Mr Jason Lim, head of product management at Prudential Singapore, suggests that you ask yourself some questions to determine your financial readiness:
- What is your desired retirement lifestyle and the estimated expenses?
- Do you have sufficient income streams or savings to fund this lifestyle?
- Do you have adequate health insurance coverage for retirement?
- How much debt or liabilities will you have and how will you service them?
- Do you have an emergency fund to cover unexpected expenses?