Money is one of those topics that never seems to go away. Whether you’re in your 20s, just starting out in the working world, or in your 50s, thinking seriously about retirement, the question of “How much should I have saved by now?” is a common one.
In Singapore, where the cost of living is high and financial milestones often come early—think of buying an HDB flat in your 20s or 30s—it’s especially important to have some benchmarks. While everyone’s journey is unique, having savings goals at different stages of life helps you stay grounded and gives you direction as you build long-term financial security.
Let’s break down what your savings might look like at different stages of life in Singapore, how CPF plays a role, and what practical steps you can take to keep yourself on track.
Why Savings Benchmarks Matter in Singapore
Unlike some countries where state pensions cover most retirement needs, Singapore’s system is a mix of personal responsibility and structured support.
- Rising cost of living: Daily expenses, housing, healthcare, and childcare costs have increased steadily. Without a savings plan, it’s easy to feel like you’re always playing catch-up.
- The CPF system: Singaporeans and PRs contribute a portion of their monthly income into the Central Provident Fund (CPF), which is designed to cover housing, healthcare, and retirement. But CPF alone may not be enough for your desired lifestyle in retirement.
- Early financial milestones: Many Singaporeans purchase property in their late 20s or early 30s, and some start families soon after. These are big commitments that make savings discipline even more important.
Benchmarks aren’t about making you feel behind—they’re about helping you measure progress and prepare for the next stage of life.
Savings Goals in Your 20s: Building the Habit
Your 20s are often the decade of discovery. You’ve just entered the workforce, and your first paycheques may feel like a ticket to freedom. But this is also the best time to set the foundation for your financial future.
Key Goals in Your 20s:
- Emergency Fund: Aim to build 3–6 months’ worth of expenses in cash savings. This is your safety net for unexpected events like medical bills, job changes, or even sudden travel.
- Understand CPF: At this stage, CPF is quietly growing in the background. You might not think much about it, but your Ordinary Account (OA) is accruing funds that can later be used for housing.
- Avoid lifestyle inflation: It’s tempting to spend more as your salary increases, but resist the urge to upgrade everything at once. Keep your expenses proportionate.
- Start investing early: Even small amounts invested through Robo-advisors, ETFs, or CPF top-ups can grow significantly over decades.
Benchmark:
By the end of your 20s, a good target is to have one year’s worth of your annual salary saved up, spread across cash, investments, and CPF. For instance, if you’re earning $40,000 annually, aim to have $40,000 in combined savings and CPF balances.
Savings Goals in Your 30s: Growth and Responsibility
For many Singaporeans, your 30s are a decade of big-ticket expenses. You might be getting married, buying an HDB flat, or raising children. These commitments can eat into your savings, so planning is critical.
Key Goals in Your 30s:
- Mortgage and Loans: If you’ve bought property, your CPF OA is likely servicing the loan. Keep track of how much of your CPF is going into housing versus retirement.
- Family Costs: From childcare to healthcare, expenses multiply if you have children. Budgeting carefully ensures you don’t dip too heavily into savings.
- Invest Seriously: This is when you should be actively growing your money through investments—whether in equities, unit trusts, or even side hustles. The longer your money stays invested, the harder it works for you.
- Insurance: Protect your family and assets with adequate coverage for health, life, and critical illness.
Benchmark:
By the end of your 30s, aim to have two to three times your annual salary saved. So if you’re earning $70,000 per year, try to have between $140,000–$210,000 in savings and CPF combined.
Savings Goals in Your 40s: Peak Earning and Planning Ahead
Your 40s are often your peak earning years, but they can also be financially demanding. This is the time to focus on long-term planning while balancing ongoing responsibilities.
Key Goals in Your 40s:
- Education Savings: If you have children, their education costs—especially overseas studies—can be significant. Start an education fund early to avoid scrambling later.
- Mortgage Reduction: Aim to reduce or fully pay off your home loan. Being debt-free by your 50s offers peace of mind as retirement draws closer.
- Retirement Planning: This is the decade to start envisioning your retirement lifestyle. Do you want to travel often? Downsize your home? The earlier you plan, the better.
- Increase CPF Savings: Consider topping up your CPF Special Account (SA) or using the Supplementary Retirement Scheme (SRS) for tax relief while boosting retirement savings.
Benchmark:
By your late 40s, aim to have four to six times your annual salary saved. For example, if you earn $100,000 a year, you should ideally have between $400,000–$600,000 set aside.
Savings Goals in Your 50s: Retirement on the Horizon
Your 50s are about consolidation and preparation. Retirement is no longer a distant concept—it’s coming into focus, and your financial decisions now can determine the lifestyle you’ll enjoy later.
Key Goals in Your 50s:
- Catch-up Savings: If you feel behind, this is the time to maximise your savings rate.
- Maximise CPF: By age 55, your Retirement Account (RA) is created from your OA and SA. Topping up before this ensures higher CPF LIFE payouts in retirement.
- Shift Investment Strategy: Move gradually from higher-risk growth investments to more stable, income-generating assets.
- Retirement Lifestyle Planning: Work out your monthly retirement budget. Consider healthcare costs, travel, and whether you’ll continue to support children or elderly parents.
Benchmark:
By your mid to late 50s, aim to have eight to ten times your annual salary saved. So if you earn $120,000 per year, you should target $960,000–$1.2 million in savings and CPF combined.
How CPF Fits Into the Equation
CPF is central to financial planning in Singapore. Here’s a quick recap:
- Ordinary Account (OA): Primarily for housing, education, and investments.
- Special Account (SA): For retirement, growing steadily at 4–5% interest.
- Medisave Account (MA): For healthcare expenses and insurance premiums.
Your CPF contributions can make up a large portion of your savings benchmarks. For example, by age 55, if you’ve been consistently employed, your CPF balances could easily make up several hundred thousand dollars of your net worth.
Practical Tips for Each Stage
- Budgeting Tools: Use apps like Seedly or MoneyOwl to track spending and savings.
- Investing: Start with Robo-advisors in your 20s, move to ETFs and unit trusts in your 30s and 40s, and gradually shift to bonds or dividend stocks in your 50s.
- Insurance: Review policies every few years to ensure you’re not overpaying or under-covered.
- Tax Reliefs: Use CPF top-ups, SRS contributions, and parent reliefs to optimise taxes.
Balancing Savings and Lifestyle
While benchmarks are helpful, remember that money is also there to be enjoyed. Over-saving can rob you of meaningful experiences, while overspending can jeopardise your future.
A good rule of thumb is the 50-30-20 principle:
- 50% of income for needs,
- 30% for wants,
- 20% for savings and investments.
Adjust as necessary for your circumstances, but keep your savings consistent.
Conclusion: Everyone’s Journey is Different
At the end of the day, these benchmarks are guidelines, not strict rules. Some may exceed them, others may fall short. What matters most is that you start early, stay disciplined, and adjust along the way.
In Singapore, with the CPF system, diverse investment options, and relatively high savings culture, building long-term financial security is very possible. The earlier you start, the more flexibility and freedom you’ll enjoy later.
So whether you’re in your 20s just beginning to save, or in your 50s fine-tuning your retirement plans, remember—it’s not about keeping up with anyone else, but about building a future that supports the lifestyle you want.
