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Retirement · free tool

Retirement gap: how much more do I need to retire?

Your retirement gap is the income you want, raised for inflation, minus CPF LIFE and any other income. Multiply the yearly gap by 25 (a 4% withdrawal rate) to see the capital you need, then compare it with what your investments can grow to.

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How it works

  1. Inflation. The income you want today is raised by inflation until you retire.
  2. Gap. That future income less CPF LIFE and other income, such as rent or part-time work.
  3. Capital. Gap × 12 ÷ withdrawal rate. At 4%, each S$1,000 a month needs about S$300,000.
  4. Your path. Today’s investments and monthly additions grow at your expected return until you retire.
  5. Extra saving. If there is a shortfall, the tool shows the extra monthly amount that would close it by retirement.

Enter CPF LIFE in money of the year you retire, as the CPF retirement check shows it.

Worked example

Someone wants S$3,000 a month in today’s dollars and retires in 25 years, with 2.5% inflation. That becomes about S$5,562 a month. With a CPF LIFE payout of S$1,800, the gap is about S$3,762 a month, needing about S$1,128,550 at a 4% withdrawal rate.

S$100,000 invested today plus S$500 a month at 4% grows to about S$516,459. Closing the rest needs about S$1,225 more each month.

Common questions

Is the 4% rule safe in Singapore?

The 4% rule comes from US market history and is a rule of thumb, not a guarantee. A lower rate, such as 3% to 3.5%, is more cautious for a long retirement.

What return should I assume?

Use a figure you would be comfortable with in a bad decade. Many planners use 3% to 5% for a balanced portfolio after costs.

Does CPF LIFE rise with inflation?

The Escalating Plan rises 2% a year. The Standard and Basic plans give level payouts, though they can be adjusted with interest rates and mortality experience.

What next

Dividend income planner: how much capital for the income I want?Dividend income plannerCPF retirement check: will I reach the Full Retirement Sum by 55?CPF retirement check

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.