In this ST article, DBS financial experts calculated that S$900,000 is needed to fund a S$3,500 monthly payout during retirement.
You need to be a millionaire in order to retire. This is cause for concern.
I believe the S$900,000 figure is the net asset figure, i.e. total assets minus liabilities (debt). If it is cash, then things look even worse for most people.
How many millionaires are there in Singapore? A 2014 Boston Consulting Group (BCG) report states that there are 100 millionaire (USD) households out of every 1,000 households in Singapore.
In other words, only 10% of households here have a net worth of US$1m. Households, not individuals. (But note the USD figure.) Nevertheless, if we use this info to estimate the number of SGD millionaire individuals, I believe the percentage is very likely to be less than 10%.
Are the DBS financial experts saying that the majority of Singaporeans can’t expect to have a S$3,500/mth lifestyle when they retire?