Investing Updates : Retirement Planning In Singapore: How Much Do I Need To Save And Invest To Retire At 55?

Source : 

https://dollarsandsense.sg/retirement-planning-in-singapore-how-much-do-i-need-to-save-and-invest-to-retire-at-age-55/

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Retiring at 55 in Singapore requires careful planning since CPF LIFE payouts only begin at age 65. Based on average household expenditure data, an individual would need about $3,296 per month, or $39,558 annually, to cover living costs. This means retirees must bridge a 10-year gap between ages 55 and 64 before CPF LIFE kicks in.

If relying purely on savings, this gap requires about $395,580. Factoring in 2.5% interest (e.g., leaving funds in CPF-OA or high-interest accounts), the amount drops to around $350,000. On top of this, retirees need the Enhanced Retirement Sum (ERS) of $426,000 in CPF to receive payouts of about $3,330 monthly from age 65 onwards. Combined, that’s about $776,000–$821,000 required at 55.

Alternatively, retirees can use investments. A portfolio of about $791,000 yielding 5% annually provides lifelong passive income without touching principal. If drawing down on principal until age 85, about $615,000 is sufficient, though nothing remains after.

Ultimately, a mix of CPF savings and investments is the most practical strategy, balancing steady CPF returns with potentially higher investment yields.

Opinion : 

Expenditure might not be constant with rising inflation.

Article provides good knowledge for investors.