It’s impossible to have a definitive answer for how much money we should have by a certain age. We all live in different circumstances and lifestyles – which means how much we save is very personal.
While we will aim to present a logical set of numbers in this article, any figure that we arrive at should only ever be used as a point of reference. If we haven’t achieved it, then it can serve as a goal. If we have achieved it, there’s no reason why we cannot do even more.
Read Also: Retirement In Singapore: Here’s Why You Need To Understand The Difference Between Your Net Worth And Income
How Much Does An Average Singaporean Save?
According to the Department of Statistics Singapore, our personal savings rate was 35.2% in the fourth quarter of 2023. Personal savings is calculated as the difference between our disposable income and personal consumption expenditure on goods and services.
However, we should also note that this rate changes each quarter. To really understand how much we should be saving, it may be more prudent to look at a longer horizon. We calculated this to be 34.1% over the past 10 years.
| Year | Personal Savings Rate |
| 2023 | 34.4% |
| 2022 | 35.4% |
| 2021 | 36.8% |
| 2020 | 40.0% |
| 2019 | 28.9% |
| 2018 | 28.9% |
| 2017 | 28.6% |
| 2016 | 28.7% |
| 2015 | 27.5% |
| 2014 | 27.0% |
| 2013 | 25.2% |
| 10-Year Average Savings Rate | 34.1% |
Source: Department of Statistics Singapore
Since the 1980s, the personal savings rate has been steadily increasing. More recently, from 2010, our personal savings rate has drastically risen. Up until 2019, it was hovering around the 25% to 29% range. In 2020 and even 2021, the personal savings rate shot up nearly 10 percentage points – likely due to safe management measures imposed during the pandemic.
How Much Does The Average Singaporean Earn?
In the Labour Force in Singapore 2023 report, we can see the median monthly salary for Singaporeans within each age group. We can further narrow down their take-home salary by excluding the employer and employee components of their CPF contributions.
| Age Group | Median Monthly Salary (including Employer CPF) In 2023 | Median Monthly Salary (excluding Employer CPF) In 2023 | Median Take Home Pay (excluding Employer CPF & Employee CPF) |
| 15-19 | $1,580 | $1,350 | $1,080 |
| 20-24 | $3,042 | $2,604 | $2,083 |
| 25-29 | $4,680 | $4,000 | $3,200 |
| 30-34 | $5,850 | $5,000 | $4,000 |
| 35-39 | $6,718 | $5,833 | $4,666 |
| 40-44 | $7,098 | $6,167 | $4,934 |
| 45-49 | $6,825 | $5,958 | $4,766 |
| 50-54 | $5,850 | $5,000 | $4,000 |
| 55-59 | $4,351 | $3,978 | $3,342 |
| 60 & over | $2,905 | $2,654 | ~$2,450 |
Source: Labour Force in Singapore 2023 report
Read Also: What’s The Median Salary In Singapore (At Every Age, Gender, Education and Race)
How Much Money You Should Be Saving At Each Age Group?
From the two data sets above, we know how much money individuals in each age group should be earning and the average personal savings rate in the past 10 years. Hence, we can calculate how much money a person would save each year.
| Age Group | Median Take Home Pay (excluding Employer CPF & Employee CPF) | How Much You Should Be Saving Each Month (34.1%) | How Much You Should Be Saving Each Year (34.1%) |
| 15-19 | $1,080 | $368 | $4,419 |
| 20-24 | $2,083 | $710 | $8,524 |
| 25-29 | $3,200 | $1,091 | $13,094 |
| 30-34 | $4,000 | $1,364 | $16,368 |
| 35-39 | $4,666 | $1,591 | $19,093 |
| 40-44 | $4,934 | 1,682 | $20,190 |
| 45-49 | $4,766 | $1,625 | $19,502 |
| 50-54 | $4,000 | $1,364 | $16,368 |
| 55-59 | $3,342 | $1,140 | $13,675 |
| 60 & over | ~$2,450 | $835 | $10,025 |
How Much Savings You Should Have At Every Age Group
we want to estimate how these savings grow as we age, we need to factor in other considerations/assumptions:
- we start working at 19 (and don’t have any other savings/income except from work)
- wages do not increase over the years (hopefully this is offset by inflation factors)
- savings do not increase in size (also hopefully offset by inflation factors)
- personal savings rate stays the same (which will never happen, as we’ve already seen above)
- We retire at 65 (the long-term targeted retirement age today)
- We do not include our CPF savings (which can be substantial as well)
Even then, this feels like the estimate is going to be sketchy – so take the numbers with a pinch of salt. Moreover, those who are older today (i.e. perhaps above 40), would have had a much lower personal savings rate as well as smaller take-home pay earlier in their career.
| Age Group | How Much You Should Have In Savings (In Total) |
| 20 | $4,419 |
| 25 | $47,039 |
| 30 | $112,509 |
| 35 | $194,349 |
| 40 | $289,814 |
| 45 | $390,764 |
| 50 | $488,274 |
| 55 | $570,114 |
| 60 | $638,489 |
| 65 | $688,614 |
Just with savings alone, an average Singaporean could accumulate over $680,000 by the time they turn 65. Of course, we should also aim to grow our savings by investing it prudently. There are several ways we can grow our savings.
For a start, we can simply put it into the CPF system – and grow our savings by 4% per annum (or more!) – if we do not want to take on any investment risk. If we are able to stomach some investment risk, we may be able to grow our savings pot even more.
This number also does not include our CPF savings we could have at 65. The current median CPF savings range at 65 today is between $180,000 to $200,000.
Read Also: How Much CPF Savings Should You Have At Every Age Group
How Much Money You Should Have If You Invest Your Savings
If we are able to earn a return on our savings, we can potentially see our savings pot increase by a very large amount. This is how compound interest works.
One other assumption we have to make at this point is how much returns we are able to earn from our investments. For the sake of calculating this number, let’s take two figures – 4% (characterised by the CPF Special Account returns). Of course, if we can earn a higher return, we will be able to have even more savings.
| Age Group | How Much You Should Have In Savings (without investing) |
How Much Money You Should Have (investing at 4% p.a Returns) |
| 20 | $4,419 | $13,120 |
| 25 | $47,039 | $667,001 |
| 30 | $112,509 | $155,347 |
| 35 | $194,349 | $280,383 |
| 40 | $289,814 | $445,640 |
| 45 | $390,764 | $650,856 |
| 50 | $488,274 | $894,361 |
| 55 | $570,114 | $1,174,089 |
| 60 | $638,489 | $1,498,877 |
| 65 | $688,614 | $1,877,911 |
Finally, we should realise that these figures are merely numbers that are calculated based on information and certain assumptions. Rather than simply dismiss these figures as unrealistic or become dejected if we are behind, we can use this as a basis for our savings and investments goals.
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