How much do Singaporeans really need for retirement?

Half a million dollars might not be enough.

Retirement savings--and the lack thereof--is a major cause for concern for many Singaporeans. The prospect of working past retirement age looms over many employees, especially for those who have no idea how to manage their retirement funds.

According to a survey by DBS, respondents claimed that a war chest worth $523,306 should be enough to support them in retirement. However, DBS cautions that there seems to be a disjoint between how much one needs for retirement versus how much one needs to have set aside at their retirement age.

The survey showed that a fifty-year-old man who expects to receive $3,500 a month in today’s dollars until he is 81 years old will need $1,050,000 at the retirement age of 65, significantly above the perceived average.

“Despite healthy levels of savings in Singapore, one may still struggle to estimate sufficient funds for their retirement due to the unwillingness to take risks, uncertainty about inflation and life expectancy assumptions,” noted DBS.