In a recent episode of the DollarsAndSense Podcast, the team tackled a question that every working Singaporean wonders at some point: How Much Do You Need To Retire In Singapore?
The discussion was sparked by the latest Household Expenditure Survey, which found that retirees spend an average of $1,384 per month.
At first glance, that may seem like a tight budget.
Yet the figure reflects an average across seniors aged 65 and above who are no longer working. Some manage with far less, around $480 in the lowest income group, while others, in the top bracket, spend more than $3,200 monthly. Reality sits somewhere in between, depending on lifestyle, family support and health.
Living Longer, Planning Smarter
Singaporeans today enjoy some of the longest lifespans in the world.
As of 2024, a Singaporean reaching 65 can expect to live another 21 years. Roughly one in three people who reach the age of 65 will also live beyond 90. What used to be a 15-year retirement can become a 30-to 40-year chapter, one that requires careful financial planning.
The principles towards retirement planning remain timeless: save more while working, spend sensibly, and stay active for as long as possible. With re-employment ages rising and healthier living becoming the norm, more people are choosing to work beyond traditional retirement years, not just for income, but for purpose and connection.
CPF LIFE: The Core Of The System
For most Singaporeans, CPF LIFE remains the foundation of retirement security. Its structure provides lifelong monthly payouts, ensuring income continues no matter how long one lives.
For 2025, the three retirement sums offer a guide to what retirees can expect:
The Basic Retirement Sum (BRS) provides you with monthly payouts for basic living needs, excluding rental expenses. The BRS of $106,500, set aside in our Retirement Account at age 55, will translate into a monthly payout of about $930 from age 65.
The Full Retirement Sum (FRS) is double your BRS and is the default amount to set aside in your Retirement Account (RA) when you turn 55. The FRS of $213,000, set aside in our Retirement Account at age 55, translates to a payout of about $1,730 per month from age 65.
The Enhanced Retirement Sum (ERS) is the maximum amount you can top up your RA by if you are aged 55 or older. The ERS increases yearly, and topping up to the current year’s ERS allows you to get the highest CPF monthly payouts. The ERS of $426,000, set aside in our Retirement Account at age 55, will provide roughly $3,330 per month from age 65.
Health As The True Wealth
Income is only one part of retirement. Health is the other. Many retirees see their expenses fall after leaving work, but medical costs tend to rise with age. Preventive care, insurance coverage and an active lifestyle are essential to maintaining quality of life.
The Home Advantage
Home ownership also plays a pivotal role in Singapore’s retirement equation. For many, a fully paid flat provides both security and a potential financial buffer. Options such as right-sizing, the Lease Buyback Scheme, or renting out spare rooms can turn property into an additional stream of retirement income.
A home, in this sense, is not just where one lives but a flexible asset for financial stability.
The Bottom Line
There’s no single amount that guarantees a comfortable retirement. The $1,384 benchmark may be a useful guide, but the real answer depends on how one lives, spends, and plans. With CPF LIFE as a stable foundation, thoughtful savings habits, and an emphasis on health and purpose, Singaporeans can look forward not just to long lives, but fulfilling ones.
Watch the full episode on our DollarsAndSense YouTube channel.
