From setting up an emergency fund to defining your personal savings goals, understanding the average savings rate of Singaporeans, learning how much Singaporeans earn on average, and discovering effective savings strategies—this guide will help you navigate your financial journey with confidence and purpose.
Building savings as you progress through life is essential for establishing a financial safety net and securing your future. But how much should you realistically aim to save as you move through each age group? Knowing where you stand at each stage can offer valuable insights, whether you’re just beginning your career, in your peak earning years, or preparing for retirement.
Let’s Talk About Your Emergency Fund
An emergency fund is a cornerstone of personal finance, offering a crucial buffer against life’s uncertainties. Whether it’s for unexpected medical expenses, home repairs, or an unanticipated loss of income, a well-funded emergency account ensures you have a financial cushion when you need it most.
Financial experts typically recommend setting aside funds that cover three to six months of your monthly salary. This amount allows you to manage sudden financial setbacks without derailing your long-term goals, giving you peace of mind as you navigate life’s inevitable ups and downs.
Factors That Affect Your Saving Journey
Each individual’s savings journey is unique and shaped by many factors influencing one’s ability to save, invest, and grow wealth over time. These factors range from personal choices and circumstances, such as education and career, to broader influences, like cost of living and economic conditions.
Your Education
Education is often a strong determinant of earning potential, as higher qualifications can open doors to more lucrative career opportunities. In Singapore, those with advanced degrees or specialised training generally have access to higher-paying roles, which can greatly enhance their ability to save money over the long term.
Your Skills
Skills beyond formal education, such as technical expertise, leadership, or proficiency in high-demand fields, can significantly boost your earning capacity. By continuously developing valuable skills, you increase your employability and the likelihood of career advancement, which can lead to better pay and more money for saving and investing.
Your Salary
Your monthly or annual salary or earnings directly impact your ability to save and accumulate wealth. Understanding how your income compares to the median salary in Singapore can help you assess whether your earnings are sufficient to meet your financial goals.
National Service
In Singapore, the National Service (NS) is a unique factor that can temporarily affect young men’s early earning years. The time spent serving in NS and a relatively modest allowance may limit opportunities for savings in those initial years. However, after NS, many can focus on building their careers and increasing their savings as they transition into full-time employment.
The Amount of Money You Started With
Starting with an initial amount of savings, whether from family support or previous income, can provide a considerable advantage in one’s financial journey. Those without this advantage may need to work harder initially to establish a financial safety net, which can influence the pace of their savings journey.
Your Debts
Debt obligations, including Singaporean personal loans, housing loans, or other financial commitments, can significantly impact monthly savings. Prioritising debt repayment can reduce the funds available for saving, particularly when dealing with high-interest loans. A licensed moneylender in Singapore can offer solutions for managing debts responsibly and consolidating high-interest obligations.
Your Health
Health-related expenses can consume a significant portion of one’s income, especially if medical bills are ongoing or unexpected. When health issues arise, disposable income may be redirected towards treatments and care, impacting long-term financial planning and reducing saving capacity.
Your Location
The cost of living in Singapore can vary widely depending on location, with expenses like housing, food, and transportation often higher in urban or more desirable areas. Due to these increased expenses, disposable income can be lower for individuals living in higher-cost regions, which may limit personal savings rates over time.
Your Investments
Investments play a vital role in growing wealth and can accelerate your savings journey by generating returns beyond what a traditional savings account can offer. Through options like stocks, bonds, and property, you can diversify your portfolio and allow your money to grow more aggressively, especially over the long term.
Other Obligations
Additional responsibilities, such as providing for family members or covering educational expenses, can affect your ability to save consistently. These obligations may vary throughout life, impacting your financial situation and the monthly amount you can set aside.
What Are Your Savings Goals and Why Do You Have Them?
Establishing clear savings goals is essential for achieving financial security and fulfilling personal aspirations. While it’s tempting to compare your progress with others, it’s important to remember that saving money isn’t a competition; instead, it’s a highly personal journey shaped by your unique priorities and values.
Focusing on your motivations can help you make financial decisions that align with what truly matters to you, such as providing for your family, securing retirement, or building a safety net for unexpected expenses. In the end, your savings goals are about creating a financial foundation that supports your ambitions and brings you closer to a fulfilling life.
Average Savings Rate of Singaporeans
The Singapore Department of Statistics reported that Singaporeans’ average personal savings rate from 2013 to 2023 has experienced considerable variation. 2023 the personal savings rate stood at 34.4%, a slight decline from 35.4% in 2022.
The peak savings rate within this period was recorded in 2020, reaching 40.0%. This was likely due to reduced spending options during the COVID-19 pandemic, as restrictions limited discretionary expenditures on transportation, entertainment, and travel.
The 10-year average savings rate (2013-2023) stands at 34.1%, reflecting an overall trend of increased savings awareness among Singaporeans. This enduring trend suggests that, despite economic changes, Singaporeans have maintained a strong focus on financial resilience.
| Year | Personal Savings Rate |
| 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% |
| 2013 | 25.2% |
| 10-Year Average Savings Rate | 34.1% |
How Much Do Singaporeans Earn on Average?
To gain insight into Singaporeans’ savings habits, let us examine the annual savings data from the 2023 Labour Force reports. This information is broken down by age group, offering a detailed perspective on how savings patterns vary across different stages of life.
| Age Group | Median Monthly Salary (including Employer CPF) In 2023 | Median Monthly Salary (excluding Employer CPF) In 2023 | Median Take Home Pay (excluding Employer CPF & Employee CPF) |
| 15-19 | $1,580 | $1,350 | $1,080 |
| 20-24 | $3,042 | $2,604 | $2,083 |
| 25-29 | $4,680 | $4,000 | $3,200 |
| 30-34 | $5,850 | $5,000 | $4,000 |
| 35-39 | $6,718 | $5,833 | $4,666 |
| 40-44 | $7,098 | $6,167 | $4,934 |
| 45-49 | $6,825 | $5,958 | $4,766 |
| 50-54 | $5,850 | $5,000 | $4,000 |
| 55-59 | $4,351 | $3,978 | $3,342 |
| 60 & over | $2,905 | $2,654 | $2,450 |
Annual Savings of Singaporeans
Are you prepared to explore the average annual savings of Singaporeans by age group?
Please refer to the table below to better understand the recommended yearly savings based on the figures above. (It is calculated using a 34.1% average savings rate.)
| Age Group | Median Take Home Pay (excluding Employer CPF & Employee CPF) | How Much You Should Be Saving Each Year (34.1%) |
| 15-19 | $1,080 | $4,419 |
| 20-24 | $2,083 | $8,524 |
| 25-29 | $3,200 | $13,094 |
| 30-34 | $4,000 | $16,368 |
| 35-39 | $4,666 | $19,093 |
| 40-44 | $4,934 | $20,190 |
| 45-49 | $4,766 | $19,502 |
| 50-54 | $4,000 | $16,368 |
| 55-59 | $3,342 | $13,675 |
| 60 & over | $2,450 | $10,025 |
Average Savings of Singaporeans: What Should Be Your Savings Goals by Age?
Let’s take the example of Anne, a young Singaporean who started working at 21 to retire at 44 to focus more on family. For simplicity, let’s assume the following conditions:
- Anne has no other savings or income aside from her regular job earnings.
- Anne’s wages remain constant throughout her career, with no raises or bonuses (though ideally, inflation would offset this to maintain purchasing power).
- Anne saves a consistent percentage of her income each year, even though personal savings rates vary significantly based on lifestyle, economic factors, and personal goals.
- Anne’s CPF contributions are not factored in, even though they could make a significant difference in retirement funds.
| Age | Median Take Home Pay (excluding Employer CPF & Employee CPF) | Savings for the year (34.1% of take-home income) | Savings in Total |
| 21 | $2,083 | $8,524 | $8,524 |
| 22 | $2,083 | $8,524 | $17,048 |
| 23 | $2,083 | $8,524 | $25,572 |
| 24 | $2,083 | $8,524 | $34,096 |
| 25 | $3,200 | $13,094 | $47,190 |
| 26 | $3,200 | $13,094 | $60,284 |
| 27 | $3,200 | $13,094 | $73,378 |
| 28 | $3,200 | $13,094 | $86,472 |
| 29 | $3,200 | $13,094 | $99,566 |
| 30 | $4,000 | $16,368 | $115,934 |
| 31 | $4,000 | $16,368 | $132,302 |
| 32 | $4,000 | $16,368 | $148,670 |
| 33 | $4,000 | $16,368 | $165,038 |
| 34 | $4,000 | $16,368 | $181,406 |
| 35 | $4,666 | $19,093 | $200,499 |
| 36 | $4,666 | $19,093 | $219,592 |
| 37 | $4,666 | $19,093 | $238,685 |
| 38 | $4,666 | $19,093 | $257,778 |
| 39 | $4,666 | $19,093 | $276,871 |
| 40 | $4,934 | $20,190 | $297,061 |
| 41 | $4,934 | $20,190 | $317,251 |
| 42 | $4,934 | $20,190 | $337,441 |
| 43 | $4,934 | $20,190 | $357,631 |
| 44 | $4,934 | $20,190 | $377,821 |
Under these assumptions, Anne expects to have accumulated a total savings of $377,821 by reaching 44, assuming she consistently saves the same portion of her income yearly. This estimate gives her a solid financial base as she transitions to focus more on her family.
While we estimated this situation with consistent effort, again, this is just an example. Savings targets vary widely based on individual circumstances, and each person’s financial journey is unique. It’s easy to feel pressured by savings “benchmarks” or targets for certain age groups, but remember: saving money is not a competition.
No single “right” amount you must have saved by a particular age exists. Life is unpredictable; emergencies or changing priorities can affect your savings journey. In some years, you might be able to save more; in other years, unforeseen expenses could reduce your savings. And that’s okay.
Setting a savings target is not to create stress or pressure but to encourage mindfulness about financial habits. Your financial health is a personal journey, and comparing yourself to others won’t necessarily help. Focus on what you can control, adapt to life’s surprises, and remember that your financial well-being is about creating security for yourself and your family—not meeting a specific number by a certain age.
Average Savings of Singaporeans: How Much Money Should I Have Saved by 21?
At 21, it’s ideal to focus on creating a solid financial base by establishing an emergency fund and developing good saving habits. Aim to save at least 20% of your annual salary, which will help you build a buffer for unexpected expenses and set the groundwork for future financial security.
Average Savings of Singaporeans: How Much Savings Should I Have at 30?
By the age of 30, it’s recommended to have savings that equal at least one year of your annual salary. Placing these funds in a high-yield savings account can help maximise your returns and maintain the purchasing power of your savings over time.
Average Savings of Singaporeans: How Much Savings Should I Have at 40?
Financial experts often suggest saving around three times your annual salary by 40. To achieve this, investing in a diversified portfolio of assets may be wise. This can help grow your wealth further and prepare you for a comfortable future.
Is 100k in Savings a Lot?
While having $100,000 in savings may seem considerable, its significance depends largely on your lifestyle, income level, and ongoing financial commitments. For some, it represents a strong financial cushion; for others, it may only cover a few months of expenses.
What if You Haven’t Saved Much Yet?
These savings benchmarks are intended as general guidelines, not strict targets. If you fall short, don’t be discouraged; financial planning is a personal journey, and everyone progresses at their own pace. Focus on building sustainable savings habits that align with your unique circumstances.
How To Save Money in Singapore
Saving money in Singapore can be challenging, given the high cost of living, but it’s achievable with smart planning and a disciplined approach. Setting realistic budgets, tracking expenses, and maximising available savings schemes are essential to reaching your financial goals.
Store Your Money in a High-Yield Savings Account
Placing your funds in a high-yield savings account allows you to earn interest faster than standard accounts, helping your money grow steadily over time. Many Singaporean banks offer these accounts, which can significantly boost your savings without additional effort.
Save at Least 50% of Your Salary if Possible
If feasible, save half your monthly salary, providing a robust financial buffer for future goals. Considering the median monthly income in Singapore, setting this goal can make a significant difference in achieving long-term financial security. While challenging for some, even a smaller, consistent saving rate can help you save money and build financial security over time.
Max Out Your Employer’s Contribution
If your employer offers a contribution scheme, such as CPF in Singapore contributions, take full advantage of it. Employer contributions are an excellent way to boost your retirement savings without additional out-of-pocket costs, especially useful for those in Singapore seeking to save money in the long term.
Diversify Your Investments
Investing in various assets, such as stocks, bonds, and real estate, can spread your risk and potentially increase your returns. Diversification ensures you’re not overly reliant on any single investment, which can provide more financial stability, particularly for those with other financial obligations.
Have SMART Savings Goals
Setting SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) savings goals allows you to track progress and stay motivated. By clarifying what you’re saving for, you can stay focused and make better financial decisions that align with your personal loan or housing loan obligations, if applicable.
Pay Off High-Interest Debts First
Prioritising the repayment of high-interest debts, like credit card balances, can prevent interest from eroding your finances. Clearing these debts as soon as possible frees up more money for savings and investments, ensuring your funds are directed toward growth instead of debt maintenance.
The Best Savings Tip for You: Earn More Money
While budgeting and cutting expenses are essential, earning passive income is one of the most effective ways to increase savings. Consider exploring a side hustle or advancing your skills to boost your take-home income.
Strategies such as CPF Shielding and contributions to the Supplementary Retirement Scheme can also, depending on how they are utilised, shape one’s long-term financial security. CPF Shielding allows you to maximise CPF retirement savings. At the same time, the SRS offers tax benefits and an additional way to save for retirement outside CPF.
Conclusion
Building savings is a critical component of financial health, especially when it comes to Singapore saving money strategies tailored to your unique lifestyle. Whether you’re in your 20s or approaching your 50s, setting realistic savings goals and following good financial habits can lead to a comfortable and secure future. By monitoring your savings progress and making wise financial decisions, you can ensure a brighter financial outlook for yourself and your loved ones.
Check out our other articles for more insights and expert guidance on building a solid financial foundation and taking control of your financial journey.
