Prescribing retirement sum can have unintended consequences

Financial experts often come up with a specific amount of retirement savings deemed adequate to retire well in Singapore.

- Wong Wan Hoong

A recent DBS report suggested that a 60-year-old retiree in 2030 will need $550,000 to cover his monthly basic living expenses (How Gen Zs and millennials can build their retirement nest eggs, Feb 23).

The required sum is raised to $1.3 million if one also wishes to cover other activities such as travelling for holidays.

While such projections can be helpful for retirement planning in Singapore, it can cause unnecessary distress for many knowing their savings are nowhere near the $550,000 mark.