Andrea:
What do Singaporeans typically tend to get wrong when it comes to planning for their retirement savings and how can we unlearn some of these mistakes?
Siew Lee:
It’s about priority. I won’t say it’s wrong, it’s just that they prioritise one (thing) over the other … If your income or situation permits, you should do all things at the same time.
Of course, you still need to set aside six months of your income as emergency cash. After that, you just need to spread out.
Andrea:
Is there like a ballpark figure that you can give me … for someone who has no idea how to start (saving for retirement), how much would I need (for my retirement) in numbers?
Siew Lee:
If I look at it in our Financial Wellness Index for 2024, we had three lifestyles.
The first basic retirement lifestyle will be like owning and living in (an) HDB property, commutes by public transport – that one is about S$2,725 a month, to be exact.
Retirement lifestyle B will be: Owns and lives in (an) HDB property, commutes via taxi or your own mid-range car, employs (a) part-time domestic helper. That’s about S$3,430.
Retirement lifestyle C will be: Owns a high-end car, lives in a private property, employs a full-time domestic helper. That’s about S$6,150.
