Many people are asking, what kind of life will you have after retirement in Singapore? Knowing that Singapore is one of the top countries here in Southeast Asia, many would want to enjoy life and retire happy. So choosing Singapore is one of the options for many. Living expenses might be expensive, but let’s find out why many are considering retiring here.
If you’re at the beginning or peak of your career, retiring from the workforce is probably the last thing on your mind and it’s probably too early to plan for it. The truth is, it’s never too early to start planning for retirement, even if it’s decades away from your official retirement age.
How much money do you need to retire in Singapore with a comfortable nest egg? Of course, you need to plan well and in advance to factor in the rising cost of living. The official retirement age is 62-63 years, however, many are dreaming to retire as early as 55 years. Your retirement savings need to last you for the rest of your life, so take note of how long you can reasonably expect to live.
Anyway, if you are a Singapore citizen or Singapore permanent resident and or you joined your employer before you turned 55, then they cannot force you to retire. However, employers who employ workers aged 55 and above will receive an offset of up to 8% of an employee’s monthly wages, that is one of the advantages.
Please take note that All retirement benefits including gratuities and pensions are taxable unless they are specifically exempted under the Income Tax Act. And what are those taxable and not? (1) Retirement benefits received from government pension schemes under any written law relating to pensions in Singapore (including the Pensions Act, Singapore Armed Forces Act and Parliamentary Pensions Act) and (2) Retirement benefits received from CPF/designated funds, these are non taxable. However, (1) Retirement benefits received from approved pension and provident funds before retirement, are Taxable on the total amount of retirement benefits received, while the (2) Retirement benefits received from approved pension and provident funds upon retirement based on the statutory retirement age, funds will be taxed at the time the benefits are received. (source)
Meanwhile, for the non-residents, Singapore does not offer a specific retirement visa, but it has several options for retirees to obtain a residence permit. In addition, if you reach 50 and you decide to move to Singapore, you can use Singapore Entrepreneur Pass or the Entrepass, which requires that you start a company with paid-up capital of at least $50,000.
All other routes to a permanent resident visa in Singapore require being married to a Singaporean citizen, having a work pass or making a major investment in a Singaporean entity
So these are the things you need to know if you plan to retire in Singapore.