For many young Singaporeans, it’s not just a question — it’s a looming, existential crisis. Generally, while those studying for high(er) paying careers, or who already landed a good job, remain cautiously optimistic, the stark reality is the odds of retiring comfortably in Singapore are lower than we would like to admit, because the financial obstacles are so overwhelming that they often turn into psychological barriers. Retirement isn’t just an aspiration anymore — it feels like an unattainable goal for young adults today.
The Idealised Retiree: A Snapshot
The retirement age is currently 63, and will be raised to 64 in 2026. The reemployment age is 68, with a target to increase it to 70 by 2030. This is the picture of the idealised retiree — someone who has worked long enough, accumulated sufficient savings, owns a home that has appreciated in value, and is now ready to retire. But for many young people, the gap between this ideal and their creeping future reality is growing wider, and wider.
Recent surveys show there’s a common belief among many Singaporeans that having around $600,000 in liquid cash would be enough to retire comfortably. But financial advisors and major banks actually recommend that to retire today, you would need at least $600,000 to cover your expenses, and for a comfortable lifestyle, far more money is necessary. The disconnect between the perceived and actual financial needs for retirement has created a “retirement paradox.”
The Singaporean Path
For the past couple of generations, the “typical” Singaporean trajectory has followed a stable, upward path that looked something like this: be born, study hard, work harder, buy a BTO, have a family. Then your children study and work even harder.
You then downsize your flat at a tidy profit, and move in with your adult children — ideally into their executive flat, condo, or better still, multi-generational landed family home. Then, you then help raise your grandkids, who benefit from all the intergenerational accumulated advantages of rising housing prices, stable inflation, and guaranteed CPF returns. Rinse and repeat.
Let’s say this was your plan, starting today in your mid-20s.
Income vs. Expenses: The Growing Gap
The median starting salary for a fresh university graduate in Singapore today is about S$4,500, depending on your degree, institution, etc. On paper, that sounds fair—especially when you consider that 25 years ago, in 2000, the median household income in Singapore was just $3,607, when many of our parents were just starting out in their careers.
So objectively, we’re monetarily richer than any generation in the past. But factor in rent or mortgage, daily expenses, insurance, CPF contributions, and the cost of living, and it’s not hard to see why saving for retirement often gets pushed to the back burner. You’re trying to stay afloat — not plan 40 years ahead.
Major Retirement Expenses
Retirement in Singapore doesn’t just mean “not working.” It means paying for the things you once relied on a full-time job to cover. These include:
- Housing – whether you’ve paid off your mortgage or are still renting
- Healthcare – especially as you age, with higher premiums and out-of-pocket costs
- Daily Living Expenses – food, transport, utilities
- Insurance – including medical insurance, and potentially life insurance
- Leisure – yes, even retirees want to enjoy life
Among all those costs, we can probably agree the most daunting is housing. Because housing in Singapore is one of the largest financial burdens, and it has gotten progressively harder to afford.
Housing: A Microcosm for Why You May Never Retire
Let’s consider a 4-room HDB flat—a quintessential starter home in Singapore, which is only an option once you turn 35 (if you’re single).
Over the past 5 decades, the price of a 4-room HDB flat in Singapore has increased significantly. In the 1970s, the average price for a new 4-room HDB flat was around S$20,000. By the 2010s, this price had escalated to approximately S$376,300 for new sales and S$435,000 for resale units. This represents a more than 1,700% increase over five decades.
In 2000, it was generally easier for a household in Singapore to afford a 4-room HDB flat. With an average income of about S$4,170 and flat prices under S$200,000, mortgage payments were manageable. Today’s young homeowners-to-be are entering an overheated housing market. While median income has more than doubled to around S$10,000, 4-room flats average S$435,000—outpacing income growth amid rising living costs and smaller unit sizes.
The Psychological Impact: Feeling Trapped
Housing is just one small part of a much bigger issue—it’s a reflection of the wider challenges around affordability, the rising cost of living, and how people can realistically prepare for retirement. The pressure to meet these looming financial expectations can take a real toll on mental health.
This strain plays out in several interconnected ways:
1. Expectations Outpaced by Economic Reality
Call it FOMO or kiasuism — in Singapore, our idea of success often means owning a home, achieving financial independence, and climbing the career ladder. But with costs rising faster than wages, every day these goals are slipping further away.
If you believe you’ll need $3,000 a month to retire, but you’re only earning a little over $4,000 today, the maths simply doesn’t add up — not after bills, expenses, and the occasional treat. So it’s no surprise that more than half of Singaporeans report feeling anxious because of financial stress.
2. How Financial Uncertainty Delays Life Decisions
This disconnect has a ripple effect on long-term planning. When daily survival takes precedence, bigger life decisions — like starting a family, taking career risks, supporting aging parents, or your own retirement — are pushed further down the road. More than half of Singaporean youths now say the cost of living is their top mental health stressor.
3. Social Media and the Pressure to Keep Up
Social platforms like Instagram and LinkedIn amplify all of this. Instagram fuels the fear that you’re not living your best life, while LinkedIn makes it seem like everyone else is miles ahead in their careers. Together, they feed a constant anxiety loop: you’re not achieving enough, fast enough. A recent survey found that nearly 90% of Singaporeans feel stressed about not hitting life goals.
The Need for Change: What Needs to Happen?
The challenges facing young Singaporeans today aren’t just personal — they’re structural. When the cost of living soars and retirement goalpost keeps moving, it’s clear that meaningful changes must happen:
- Policy Reform – Introduce measures that address housing affordability and ensure retirement adequacy for future generations.
- Wage Growth Alignment – Create conditions that allow wages to keep pace with the rising cost of living.
- Financial Education – Provide stronger support for young people to learn, plan, and act early on financial literacy.
These aren’t quick fixes, but a necessary starting point if we want retirement to remain a possibility — not just a privilege for a shrinking few.
So… will you ever retire?
If you’re in your 20s or 30s in Singapore today, the honest answer is: maybe… but probably not in the way you envision it — at least not without substantial structural changes to how we work, save, invest, and ultimately frame our expectations about what it means to be successful.
The good news? You’re not alone in feeling overwhelmed. And feeling stuck today, doesn’t mean staying stuck. Start where you are — whether that’s building better financial habits, talking openly about money and mental health, or voting for policies that actually reflect the cost of modern life.
