Investing Updates: Can You Still Become A Millionaire In Singapore By Just Earning The Median Salary

Source:

https://dollarsandsense.sg/can-become-millionaire-singapore-earning-median-salary/

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Becoming a millionaire in Singapore remains possible — but not by saving alone. With the current median income at $5,500, a worker takes home around $3,888 after CPF deductions. After average expenses of $2,435, only $1,453 remains monthly. Saving this entire amount would take about 58 years to reach $1 million — longer than the typical 40-year career span.

To realistically achieve millionaire status, investing is essential. If savings earn 4% annually (similar to CPF’s Special Account rate), one can reach $1 million in about 31 years — achievable within a working lifetime. However, those investing in global equities (like the S&P 500, historically averaging 10% returns) could hit the goal in just 21 years.

Higher earners reach the milestone even faster. A PMET with a take-home pay of $5,061 or a degree holder earning around $6,000 could invest $3,565 monthly and build $1 million in 12 to 13 years, given a 10% annual return. This highlights the impact of higher education, income growth, and disciplined investing.

Additionally, CPF contributions — up to 37% of salary — compound wealth further if invested wisely. Ultimately, the article stresses that saving alone is insufficient in Singapore’s high-cost environment. To accumulate meaningful wealth, Singaporeans must start early, invest consistently, and increase earning potential. While $1 million today offers solid financial security, future inflation will reduce its purchasing power — reinforcing the importance of investing early and strategically to preserve long-term financial freedom.

Opinion:

Good information.