SJP Retirement calculator
Did you know that Singapore has one of the highest life expectancies in the world at 83 years old? 1
Importance of early retirement planning
In order to enjoy a long retirement life, you need an adequate amount of retirement savings.
However, it's important to recognise that everyone’s retirement goals are different, and numbers vary wildly between individuals. Despite these differences, retirement savings should be seen as a necessary expense: not an afterthought. Think of it as an integral part of your household budget, just like grocery and lighting bills. No matter what your retirement goals are, early retirement planning is the first step towards achieving them.
1 Department of Statistics Singapore, Complete Life Tables for Singapore Resident Population, 2022-2023
Retirement calculator
Use our simple retirement calculator below to calculate how big your retirement fund needs to be from the age you plan to retire.
Beware the cost of delay
We have a choice of what we can do in retirement and when our retirement can start.
The key decision is when we start to make worthwhile investments. The sooner we start, the more choices we have later. If an investment of $10,000 pa to a retirement scheme commenced at age 30, a projected fund of $534,000 could be available at age 60, based on the assumptions shown below.
Look at what could happen if the start of the regular annual contribution was delayed by 5, 10 or 15 years.
| Fund value | Reduction in fund | % reduction in fund | Increase in annual contribution needed to provide a fund of $534,000 | |
|---|---|---|---|---|
| 5-year delay | 405,000 | 129,000 | 24% | $3,174 |
| 10-year delay | 296,000 | 238,000 | 45% | $8,042 |
| 15-year delay | 203,000 | 331,000 | 62% | $16,298 |
This example makes a number of assumptions:
- the average annual investment growth is 5% per annum, without inflation
- investment charges of 1.69%
- contributions are invested on the same day each year in a pension and are shown before charges are taken into account
- the example is only an illustration and actual investment returns may be more or less that those assumed in the illustration
- the individual has sufficient relevant Asia earnings to support the contribution amount paid
To put it another way, delay makes a big impact on your retirement provisions:
Making the commitment
Delay costs money, but making significant contributions need not be that difficult:
- Retirement savings could be seen as a necessary expense: they should not be an afterthought.
- They could be considered as an integral part of business or household budgeting, just like the heating and lighting bills.
- If cash flow is the problem, monthly contributions are a solution and the rest of the budget will adapt.
- Remember that making annual or single contributions has the possibility of buying into the market at the "wrong time". Monthly contributions help to smooth out the effect of fluctuations in unit prices.
Please note that inflation will affect the future purchasing power of a pension.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and can fall as well as rise. You may get back less than you invested.