Retirement · free tool
Dividend income planner: how much capital for the income I want?
Capital needed = yearly income you want ÷ dividend yield. For S$36,000 a year at a 5% yield, that is S$720,000. This planner shows the capital you need and how long it may take to build, with or without reinvesting dividends.
How it works
- Capital needed = target income ÷ yield. A higher yield needs less capital but often carries more risk.
- Growth: each year the portfolio grows by any price growth you enter, plus reinvested dividends (if ticked), plus your monthly additions.
- Prudence: dividends can be cut. Many income investors plan on a yield below today’s headline yield and spread across many holdings and sectors.
This planner does not recommend any share, REIT or fund. It is for information only and is not financial advice.
Worked example
Target: S$36,000 a year at a 5% yield needs S$720,000. Starting with S$200,000, adding S$1,000 a month and reinvesting dividends with no price growth, the target is reached in about 16 years.
Common questions
Are Singapore dividends taxed?
Dividends from Singapore companies under the one-tier system are not taxed for individuals. Distributions from S-REITs are generally tax-exempt for individuals who hold them directly. Foreign dividends can be subject to withholding tax.
What yield is realistic?
Yields change with prices and payouts. Use a cautious, blended yield across your whole portfolio rather than the highest yield you can find.
Should I use dividends or sell units in retirement?
Both can work. Dividends give a cash flow without selling; a total-return approach sells a little each year. Many retirees combine CPF LIFE, dividends and a cash buffer.
What next
Figures as of . CPF rules and sums change every year; check your own figures on the CPF website.
Official sources: CPF retirement income · CPF calculators · MoneySense
This planner is for information only and is not financial advice or a recommendation to buy or sell any investment. Jaimes Tan is not a licensed financial adviser.