It’s impossible to have a definitive answer for how much money we should have by a certain age. We all live in different circumstances and lifestyles – which means how much we save is very personal.
While we will aim to present a logical set of numbers in this article, any figure that we arrive at should only be used as a point of reference. If we haven’t achieved it, then it can serve as a goal. If we have achieved it, there’s no reason why we cannot do even more.
How Much Does An Average Singaporean Save?
According to the Department of Statistics Singapore, our personal savings rate was 37.6% in the fourth quarter of 2024. Personal savings is calculated as the difference between our disposable income and personal consumption expenditure on goods and services.
However, we should also note that this rate changes each quarter. To really understand how much we should be saving, it may be more prudent to look at a longer horizon. We calculated this to be 35% over the past 10 years.
| Year | Personal Savings Rate |
| 2024 | 33.7% |
| 2023 | 34.4% |
| 2022 | 35.4% |
| 2021 | 36.8% |
| 2020 | 40.0% |
| 2019 | 28.9% |
| 2018 | 28.9% |
| 2017 | 28.6% |
| 2016 | 28.7% |
| 2015 | 27.5% |
| 2014 | 27.0% |
| 10-Year Average Savings Rate | 35.0% |
Source: Department of Statistics Singapore
Since the 1980s, the personal savings rate has been steadily increasing. More recently, from 2010, our personal savings rate has drastically risen. Up until 2019, it was hovering around the 25% to 29% range. In 2020 and even 2021, the personal savings rate shot up nearly 10 percentage points – likely due to safe management measures imposed during the pandemic.
Since then, it has hovered above the pre-pandemic days – at above 33%.
How Much Does The Average Singaporean Earn?
In the Labour Force in Singapore 2024 report, we can see the median monthly salary for Singaporeans within each age group. We can further narrow down their take-home salary by excluding the employer and employee components of their CPF contributions.
| Age Group | Median Monthly Salary (including Employer CPF) In 2024 | Median Monthly Salary (excluding Employer CPF) In 2024 | Median Take Home Pay (excluding Employer CPF & Employee CPF) In 2024 |
| 15-19 | $1,170 | $1,000 | $800 |
| 20-24 | $3,269 | $2,800 | $2,240 |
| 25-29 | $4,680 | $4,018 | $3,214 |
| 30-34 | $5,870 | $5,067 | $4,054 |
| 35-39 | $7,049 | $6,050 | $4,840 |
| 40-44 | $7,434 | $6,458 | $5,166 |
| 45-49 | $7,498 | $6,487 | $5,198 |
| 50-54 | $6,400 | $5,520 | $4,416 |
| 55-59 | $4,731 | $4,151 | $3,445 |
| 60 & over | $3,025 | $2,850 | ~$2,622 |
Source: Labour Force in Singapore 2024 report
Read Also: What’s The Median Salary In Singapore (At Every Age, Gender, Education and Race)
How Much Money You Should Be Saving At Each Age Group?
From the two data sets above, we know how much money individuals in each age group should be earning and the average personal savings rate in the past 10 years. Hence, we can calculate how much money a person may save each year.
| Age Group | Median Take Home Pay (excluding Employer CPF & Employee CPF) | How Much You Should Be Saving Each Month (35%) | How Much You Should Be Saving Each Year |
| 15-19 | $800 | $280 | $3,360 |
| 20-24 | $2,240 | $784 | $9,408 |
| 25-29 | $3,214 | $1,124 | $13,499 |
| 30-34 | $4,054 | $1,419 | $17,027 |
| 35-39 | $4,840 | $1,694 | $20,328 |
| 40-44 | $5,166 | 1,808 | $21,697 |
| 45-49 | $5,198 | $1,819 | $21,832 |
| 50-54 | $4,416 | $1,546 | $18,547 |
| 55-59 | $3,445 | $1,206 | $14,469 |
| 60 & over | ~$2,622 | $918 | $11,012 |
Again, take these figures with a pinch of salt. Logically speaking, the personal savings rate cannot be uniform across different age groups. For example, those 15-19 may not be able to save 35% of their earnings, as it is quite a low base.
Similarly, younger working adults should be able to save a higher proportion of their savings compared to those in the mid-career, and sandwiched by financial responsibilities for their children and ageing parents.
How Much Savings You Should Have At Every Age Group
We want to estimate how these savings grow as we age, we need to factor in other considerations/assumptions:
- we start working at 19 (and don’t have any other savings/income except from work)
- wages do not increase over the years (hopefully this is offset by inflation factors)
- savings do not increase in size (also hopefully offset by inflation factors)
- personal savings rate stays the same (which will never happen, as we’ve already seen above)
- We retire at 65 (the long-term targeted retirement age today)
- We do not include our CPF savings (which can be substantial as well)
Even then, this feels like the number are going to be a broad estimate at best. Moreover, those who are older today (i.e. perhaps above 50), may have had a much lower personal savings rate as well as smaller take-home pay earlier in their career.
| Age Group | How Much You Should Have In Savings (In Total) |
| 20 | $3,360 |
| 25 | $50,400 |
| 30 | $117,895 |
| 35 | $203,030 |
| 40 | $304,670 |
| 45 | $413,155 |
| 50 | $522,315 |
| 55 | $615,050 |
| 60 | $687,395 |
| 65 | $742,455 |
Just with savings alone, an average Singaporean may be able to accumulate over $740,000 by the time they turn 65. Of course, we should also aim to grow our savings by investing it prudently. There are several ways we can grow our savings.
For a start, we can simply put it into the CPF system – and grow our savings by 4% per annum (or more!) – if we do not want to take on any investment risk. If we are able to stomach some investment risk, we may be able to grow our savings pot even more.
This number also does not include our CPF savings we could have at 65. The current median CPF savings range at 65 today is between $180,000 to $200,000.
Read Also: How Much CPF Savings Should You Have At Every Age Group
How Much Money You Should Have If You Invest Your Savings
If we are able to earn a return on our savings, we can potentially see our savings pot increase by a very large amount. This is how compound interest works.
One other assumption we have to make at this point is how much returns we are able to earn from our investments. For the sake of calculating this number, let’s take two figures – 4% (characterised by the CPF Special Account returns). Of course, if we can earn a higher return, we will be able to have even more savings.
| Age Group | How Much You Should Have In Savings (without investing) |
How Much Money You Should Have (investing at 4% p.a Returns) |
| 20 | $3,360 | $3,494 |
| 25 | $47,039 | $57,247 |
| 30 | $112,509 | $145,689 |
| 35 | $194,349 | $273,165 |
| 40 | $289,814 | $446,854 |
| 45 | $390,764 | $665,885 |
| 50 | $488,274 | $933,130 |
| 55 | $570,114 | $1,239,771 |
| 60 | $638,489 | $1,589,874 |
| 65 | $688,614 | $1,996,355 |
Finally, we should realise that these figures are merely numbers that are calculated based on information and certain assumptions. Rather than simply dismiss these figures as unrealistic or become dejected if we are behind, we can use this as a basis for our savings and investments goals.
The post How Much Money You Should Have In Savings (And/Or Investments) According To Your Age In Singapore appeared first on DollarsAndSense.sg.
