How much do you need for retirement?

There are two ways of calculating. 

Income approach

  • you will consume 70% of your last drawn salary
  • often used by people but no longer used by professional financial planners
  • this method has no basis

Why 70%? Why not 50% or 20%? It really depends on how fast your income grows. Usually the income approach will give you an inflated retirement fund. In the United States, financial planners have been suit for using such method because this means clients have to buy larger amount in retirement products. In Singapore, many financial salespersons continue to use such method for the same reason.

Expense approach

  • not “plucked” from the air
  • based on actual current spending.


For retirement planning – there is no need to factor in mortgage and support for dependents. You shouldn’t be having any debt or supporting anyone at that ripe old age.






Retirement Savings Interactive Calculator

Count your retirement needs