Suppose you want to spend S$48,000 a year in retirement and expect CPF LIFE to provide S$19,200 a year from age 65. Your own savings need to cover the gap of S$28,800 a year. Over a 25 year retirement, with the portfolio earning a 3 percent real return while you draw it down, the nest egg required to fund that gap is about S$501,499. This is lower than 25 times the gap, because the money still earning a return as you spend it does some of the work.
To build S$501,499 over 20 working years, investing at a 6 percent annual return before retirement, you need to set aside about S$1,085 a month. Starting earlier, accepting a slightly higher return, or leaning more on CPF LIFE all reduce that monthly figure. The big lever is the spending gap: trimming target spending or topping up CPF to lift your LIFE payout cuts the nest egg sharply.
Item
Amount
Target spending per year
S$48,000
Less CPF LIFE income
S$19,200
Gap to self-fund per year
S$28,800
Nest egg needed (25 years, 3 percent)
S$501,499
Save per month for 20 years
S$1,085
How it is calculated
The tool works backwards in two stages. First it finds the annual spending gap, your target spending minus expected CPF LIFE income. It sizes the nest egg as the present value of that gap paid every year across your retirement, discounted at the real return you expect to earn while drawing the portfolio down, so inflation and investment growth roughly offset. Then it solves the future-value-of-an-annuity formula for the monthly saving, at your pre-retirement return, that grows into that nest egg by the time you retire. CPF LIFE is treated as a separate lifelong income stream on top, which is why only the gap needs funding. Using a real rather than nominal return keeps every figure in today’s dollars, so the numbers stay meaningful.
Frequently asked questions
How much do I need to retire in Singapore?
It depends on your target spending and how much CPF LIFE covers from age 65. Subtract your expected CPF LIFE income from your desired spending, then size a portfolio that funds the rest across your retirement years. This tool works backwards to the monthly saving required.
How does CPF LIFE affect my retirement savings target?
CPF LIFE is a national longevity annuity that pays out monthly from age 65 (or up to age 70 if you defer). The higher your Retirement Account balance at 55, the larger your CPF LIFE payout. For 2025, the Basic Retirement Sum is S$106,500, the Full Retirement Sum is S$213,000, and the Enhanced Retirement Sum is S$426,000. Topping up CPF to a higher tier directly reduces the nest egg you need from private savings.
Are CPF LIFE payouts and investment gains taxable in Singapore?
CPF LIFE payouts are not taxable in Singapore. IRAS does not tax CPF interest or CPF LIFE income at any point. Capital gains from shares, unit trusts, and property are also not taxed under Singapore law, because Singapore does not have a capital gains tax. Dividend income from Singapore-listed companies is generally tax-exempt at the individual level under the one-tier corporate tax system. This means your retirement portfolio can compound and be drawn down largely tax-free, which is a significant advantage compared to many other countries.
What return assumptions are realistic for a Singapore retirement portfolio?
For a balanced CPF-supplemented portfolio, a real (inflation-adjusted) return of 2 to 4 percent during drawdown is a common planning assumption. The CPF Ordinary Account earns 2.5 percent and the Special and Retirement Accounts earn 4 percent, guaranteed by the Singapore Government. For private investments, the STI ETF has returned roughly 6 to 8 percent nominal over long periods, but past performance is not a guarantee. Using a conservative real return of 3 percent in this calculator avoids overstating your portfolio lifespan.