To The Moon

💥 S$550K enough? Or do you really need S$1.87M 😲 to retire “comfortably” in Singapore? That’s a 3× gap — so who’s right, and what’s your number? 💭

📊 Two Retirement Numbers, Two Realities

S$550K is often cited as a baseline number — it assumes you own your HDB, live modestly, and draw down CPF LIFE + cash flow. But wealth surveys peg the “comfortable” figure closer to S$1.87M, factoring in travel, private healthcare, and inflation-proofing. The gap isn’t a contradiction — it reflects different assumptions: mortgage-free vs. still paying, solo retiree vs. family support, low-cost hobbies vs. overseas trips and fine dining.

🔍 What’s Driving the Gap?

🏠 Housing: Are you fully paid up in an HDB flat, or still servicing a condo mortgage? That affects your cash flow and capital needs.

🍽️ Lifestyle: Your FIRE number depends heavily on “needs vs. wants” — from hawker meals to cafe brunches, MRT to private hire, staycays to business-class travel.

❤️‍🩹 Healthcare & Longevity: Medisave is great, but Integrated Shield plans + eldercare needs mean rising private costs — a 30-year retirement requires serious buffers.

🎓 Family Commitments: Supporting elderly parents or university-bound kids adds to your burn rate.

📈 Inflation Assumptions: A 1.5% underestimation of long-term CPI can sink your portfolio math — compounding works both ways.

💰 Withdrawal Strategy: 4% works in theory. In Singapore, a 3–3.5% rate may be more conservative — especially with low bond yields and longer life expectancy.

🔄 CPF vs DIY: CPF LIFE is a great floor, but not always enough — especially if you front-load spending in early retirement years.

🧮 Income from Capital:

S$550K × 4% = S$22K/year ≈ S$1.8K/month before tax/fees. That’s lean, even with CPF LIFE support. 

S$1.87M × 3.5% = S$65K/year ≈ S$5.4K/month — closer to affluent comfort. 

But drop that return to 2.5% or lower your draw to 3%, and you’ll need north of S$2M 📉.

 Retirement isn’t a number — it’s a set of assumptions that must be stress-tested.

🧠 Portfolio Construction Ideas

Start with CPF OA + SA as your base — that’s your SG risk-free foundation. 

Layer in SRS for tax-advantaged equity/REIT exposure. 

Use Singapore T-bills for short-term parking. 

Some go heavy on dividend REITs and $D05.SI–style banks for passive yield. 

Others build globally diversified ETF portfolios with SGD cash buffers to hedge sequence-of-returns risk. Still hungry for growth? 

Carve out a sleeve for AI or U.S. tech exposure — but be honest about volatility tolerance.

🏗️ How to Reach Your Number

🚀 Boost your savings rate — 35–50% is possible with discipline, especially in dual-income households.

🔁 Reinvest all dividends until 2–3 years pre-retirement.

🧱 Secure healthcare coverage early to prevent forced selling during downturns.

🌏 Diversify beyond local property + STI-heavy portfolios — you need global inflation hedges.

🧮 Model shocks: Can your plan survive a –25% hit in year one of drawdown?

🧪 A Quick Scenario:

Let’s say you earn S$120K/year and save 35% consistently into a 5% real return portfolio. You hit S$1M in ~15 years. But if inflation rises and real returns fall to 3%, you might need 20+ years — or adjust your FIRE goal downward. It’s not about chasing a big number. It’s about aligning your life goals with sustainable capital.

🧩 Mind Over Money

Many chase “big round numbers” without knowing why. Others settle for too little, underestimating rising healthcare, longevity, or family needs. Beware of lifestyle creep. FIRE isn’t just math — it’s mindset, clarity, and knowing what trade-offs matter to you.

⚠️ Common Pitfalls

📉 Over-optimism on future market returns

🩺 Under-budgeting healthcare

🏠 Over-reliance on property (illiquid)

🛑 Assuming 5–6% REIT yields are “guaranteed” in a changing rate regime

💬 What’s Your FIRE Number?

📈 What real return & withdrawal rate are you assuming?

💡 Which asset mix — CPF, REITs, ETFs, crypto?

📊 Drop your % REIT allocation or plan below 👇 Let’s learn from each other’s FIRE playbooks!

@TigerWire  @TigerEvents  @Daily_Discussion  @Tiger_comments  @TigerStars