Saving money is a crucial aspect of financial planning, regardless of your age or income level. In Singapore, where the cost of living is relatively high, it’s even more important to have a solid savings plan in place. Understanding the average savings of Singaporeans by age can help you gauge where you stand and set appropriate financial goals for your future.

How much do Singaporeans earn?

Before you learn the average savings of Singaporeans by age, you should first know how much Singaporeans earn. According to the Ministry of Manpower, the median monthly income from work in Singapore was $5,197 in 2023, including employer CPF contributions. This represents a 2.5% increase compared to the 2022 median salary of $5,070. Over the past decade, the median income has risen by 46%, or over 3.8% per annum, from $3,480 in 2012.

What makes savings so important?

Saving money is crucial for navigating life’s ups and downs and achieving your dreams. It’s like having a trusty umbrella ready for those unexpected rainy days. Here are a few reasons why every Singaporean should prioritize saving:

Emergency fund

Life has a way of throwing curveballs when you least expect it. Whether it’s a sudden medical emergency, a car breakdown, or losing your job, having an emergency fund can help you stay afloat during tough times. It’s recommended to have at least 3 to 6 months’ worth of living expenses saved up, so you can focus on getting back on your feet without worrying about bills.

Major life events

As you journey through life, you’ll encounter many exciting milestones that require careful financial planning. Getting married? You’ll need to save up for that dream wedding. Buying your first HDB flat? Better start building that down payment. And let’s not forget about the costs of raising a child in Singapore! By saving consistently, you’ll be better prepared to celebrate these special moments without breaking the bank

Retirement planning

Imagine yourself in your golden years, enjoying a well-deserved break after decades of hard work. To make that vision a reality, you need to start saving for retirement as early as possible. The power of compound interest means that even small contributions can grow significantly over time. By building a robust retirement fund, you can ensure a comfortable lifestyle and have the freedom to pursue your passions, even after you’ve clocked out for the last time

Financial freedom

Saving money isn’t just about being prepared for the future; it’s also about giving yourself more options in the present. When you have a healthy savings account, you have the freedom to make choices based on what you want, not just what you can afford. Whether it’s taking a sabbatical to travel the world, starting your own business, or pursuing further education, having savings gives you the flexibility to chase your dreams without being tied down by financial constraints.

Peace of mind

Money worries can be a major source of stress for many Singaporeans. By prioritizing savings, you can give yourself the gift of peace of mind. Knowing that you have a financial safety net can help you sleep better at night and enjoy life more fully. Instead of constantly worrying about the next bill or unexpected expense, you can focus on the things that truly matter to you, like spending time with loved ones and pursuing your passions.

What is the average savings of Singaporeans by age?

While there is no one-size-fits-all answer to how much you should save, looking at the average savings of Singaporeans by age can provide a helpful benchmark. Here’s a breakdown of the recommended savings targets by age group.
By Age 21: Aim to have at least three to six months’ worth of living expenses saved up.
By Age 25: Target around $28,971 in savings if earning $3,500 per month.
By Age 30: A common goal is to save $100,000, although this may vary based on individual circumstances.
By Age 35: Estimated savings should be around $180,374.
By Age 50: Aim for six to eight times your annual salary, which could be around $466,321 if earning $5,000 per month.
By Age 65: An average Singaporean could have over $650,000 in savings, not including CPF or investments.

How much savings do I need in my 20s in Singapore?

In your 20s, focus on building an emergency fund and saving for short-term goals. Aim to save at least 20% of your income and have three to six months’ worth of living expenses in your savings account.

If you’re earning the median salary of $5,197, this means saving around $1,039 per month and having $15,591 to $31,182 in emergency savings.

How much savings do I need in my 30s in Singapore?

As you enter your 30s, your financial priorities may shift towards saving for a home, starting a family, or investing for the future. Continue saving at least 20% of your income and work towards having one to two times your annual salary saved by age 35.

For someone earning the median income, this translates to a savings target of $62,364 to $124,728.

How much savings do I need in my 40s in Singapore?

In your 40s, focus on ramping up your retirement savings while balancing other financial obligations, such as your mortgage and children’s education. Aim to have three to four times your annual salary saved by age 45 and five to six times your annual salary by age 50. Based on the median income, this equates to savings of $186,492 to $248,656 by age 45 and $310,820 to $373,584 by age 50.

How much savings do I need in my 50s in Singapore?

As you approach retirement, your savings goals should be more aggressive. Aim to have seven to eight times your annual salary saved by age 55 and ten to twelve times your annual salary by age 60.

For the median earner, this means having $435,148 to $497,312 saved by age 55 and $621,640 to $745,968 by age 60.

Tips to Save More Money in Singapore

Saving money may seem like a daunting task, especially with the high cost of living in Singapore. But with a few simple strategies and a bit of discipline, you can increase your savings and reach your financial goals faster than you ever thought possible. Here are some tried and tested tips to help you save more money:

Create a budget

The first step to saving more is understanding where your money is simply doing it. Start by tracking your income and expenses for a month, either using a spreadsheet or a budgeting app like You Need A Budget (YNAB). Once you have a clear picture of your spending habits, identify areas where you can cut back, such as dining out, shopping, or subscription services. Every dollar you save is a dollar that can go towards your future goals.

Automate your savings

Paying yourself first is a powerful way to make saving a habit. Set up automatic transfers from your checking account to your savings account each month, so you’re consistently saving a portion of your income without having to think about it. You can also consider using apps like DBS Multiplier or OCBC 360 to earn higher interest rates on your savings by meeting certain criteria, such as crediting your salary or spending on your credit card.

Invest wisely

While saving is important, investing can help you grow your money even faster. Consider setting aside a portion of your savings to invest in a diversified portfolio of stocks, bonds, and other assets. You can use robo-advisory services which use algorithms to create personalized investment portfolios based on your goals and risk tolerance. Investing involves risk, so be sure to do your research and never invest more than you can afford to lose. This tip will surely increase your average savings of Singaporeans by age.

Take advantage of government schemes

Singaporeans have access to various government schemes that can help them save more for retirement. For example, the Supplementary Retirement Scheme (SRS) allows you to set aside money for retirement while enjoying tax benefits. You can contribute up to $15,300 per year (for Singaporeans and PRs) and claim a dollar-for-dollar tax relief on your contributions. Additionally, make voluntary CPF top-ups to your Special Account (SA) or MediSave Account (MA) to enjoy attractive interest rates and tax benefits.

Live below your means

One of the most effective ways to save more money is to simply spend less. Adopt a frugal lifestyle by cutting back on unnecessary expenses, such as designer clothes, fancy gadgets, or expensive hobbies. Instead, focus on experiences and relationships that bring you joy without breaking the bank. When you do need to make a purchase, shop around for the best deals, take advantage of cashback credit cards, and buy second-hand items when possible.

Boost your income

While cutting expenses is important, there’s only so much you can save. To increase your average savings of singaporeans by age, consider ways to increase your income. This could mean asking for a raise at work, taking on a side hustle, or starting a small business. Use your skills and passions to create additional streams of income that can help you reach your savings goals faster.

The Bottom Line

Understanding the average savings of Singaporeans by age can help you set realistic financial goals and stay on track with your savings plan. Remember, these are just guidelines, and your individual savings needs may vary based on your unique circumstances. By consistently saving a portion of your income, investing wisely, and making smart financial decisions, you can work towards building a secure financial future for yourself and your loved ones. Ready to supercharge your savings? Check out this guide on the best savings accounts in Singapore.

Published On: April 9th, 2024

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