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Planning for your future

Thanks to improved standards of living and better healthcare, we are now living longer than we used to. Many of us are enjoying longer retirements than we planned for, but that can come with the prospect of not being able to make ends meet later in life.

That's why the sooner you can start saving for retirement age, the more you'll be able to save, and the more financially secure you'll be.

How much is enough for retirement?

Since everyone's situation is different, there's no single rule that tells you exactly how much money you'll need for your retirement. It will depend on many factors, including:

  • the age you plan to retire

  • if you own your home

  • the rate of inflation

  • if you have debts that you need to manage

  • your family and the number of dependents

  • if you plan to continue working and semi-retire

A good starting point is to assume you'll need between half and two-thirds of your salary, after tax is deducted, to maintain your current lifestyle.

Government pension

You may be entitled to a government CPF but in most cases it might be difficult to live on this alone. You should plan to supplement government CPF with savings and investments of your own if you can, so you have enough savings for retirement in Singapore.

Employer contributions

You may find that your employer has an obligation to contribute towards your CPF in proportion to your own contributions. This can help to grow your savings significantly, and you may also be entitled to tax relief on the combined sums saved.

Some employers might also offer 'contribution matching', which is when they agree to make additional contributions into your retirement savings, as long as you agree to increase your contributions as well.

When planning for your future, here are 3 key points to keep in mind:

  1. Start as soon as you can. The earlier you start saving, the more the interest on your savings will compound, and the longer you will have to save.

  2. Make the most of any tax-free savings and employer contributions you're entitled to.

  3. Build your knowledge. You might want to seek advice from a professional financial adviser.

The good savings habits you build today can help you lay the foundation for a better financial future.

See why saving money is the most important habit you can adopt.

Check out how to find the right balance between saving money and paying off debt.

Explore our 5 tips for creating and keeping a habit of saving your money.