Why I'm retiring in Singapore

Photo by Yeo Khee on Unsplash

Why I'm retiring in Singapore

Retiring in the world's 2nd most expensive country doesn't really need a lot of effort

šŸŒ± This article is written in Feb 2022, prices and numbers may have changed since this article was published

According to CNN in 2021, Singapore ties with Zurich as the 2nd most expensive place in the world to live in:-

These are the world's most expensive cities in 2021

Despite placed 2nd/3rd, I've decided to retire right here in this sunny city. Here are my reasons why..

Affordably priced food

Believe it or not, I can get by with under $10 a day here in Singapore - by both eating out and cooking at home.

Just in case you aren't familiar with Singapore's hawker centres, they are open-air complexes that house many food stalls that serve a diverse variety of affordably priced food.

Hawker center in Singapore Source

The keyword here is affordably priced food.

Dishes from Hainanese chicken rice, laksa, nasi lemak, minced meat noodles are just a few of the many options you could go for - and all of them would definitely cost less than $10.

Personally, my trips to hawker centers never cost me more than SGD$6 - and that's with either a hot cup of coffee or tea (which usually only costs $1). If you're ok with not buying a drink for every meal (you could bring your own bottle of water from home), $10 may be more adequate for 3 meals in an entire day.

šŸ’” If you're interested to know more about food prices in Singaporean hawker centers, ping me in the Undergrowth Investor's Discord channel (it's free).

In 2020, hawker culture was successfully inscribed as Singapore's first element on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity too. Read more below...

Inscription of Hawker Culture : On 16 Dec 2020, Hawker Culture in Singapore was successfully inscribed as Singaporeā€™s first element on the UNESCO Representative List...

Convenient and cheap groceries

There's so much praise I could give to 'groceries' here in Singapore that it deserves a heading of its own in this article.

Because of the variety of produce, here are prices of how much chicken breasts (250g) and potatoes (1kg) costs;

SGD$2.50 for 200g
SGD$1.60 for 1.2kg of potatoes

Depending on where you are from, these prices may be cheap or expensive. But my argument still stands - you'll be able to live with just under $10 a day here in Singapore. That's just $300 a month!

If you're curious on fresh produce prices, visit Fairprice online's site or Amazon.sg to view prices on various fresh produce and other groceries. Amazon's prices may be a little premium though. Adjust prices for -10%.

Predictable climate

It's ironic that I'm typing this. I hate the heat and it's always hot here in Singapore.

But looking on the bright side, this means that I can make do with just a pair of good (quality) shoes for the rest of the year, no need for seasonal clothes thus saving money and space in my wardrobe.

Average temperature here in Singapore is approximately 28Ā°C outdoors. No need for sweaters or winter wear, even indoors! Source

Because of predictable climate, my home does not need to be insulated (no need to spend additional cash) and no need to buy heaters too. I turn on the air conditioner at night to sleep better in a cool environment, but they do not run more than 8 hours in a day, making my electricity bill affordable.

Great city planning

Everything is just 30 minutes away, or less.

Because Singapore is so dense (at 8358 people per km), you don't really have to travel far to get your hair done, groceries bought or go to the office. There's always a bus stop nearby, and because of good city planning, hardly any traffic jams.

This shows only MRT lines. Buses penetrate deeper into heartlands and used extensively by locals here in Singapore Source

What does this mean for the average person?

No need to buy a car, extra disposable income and more free time.

I grew up in a household and place where a car is so important, that you cannot do anything without one. But, with a car, means taxes, insurance, petrol, maintenace and parking fees. These add up and it's almost as good as throwing away money (not assets).

On top of that, stress & anxiety from driving, time wasted to find parking, getting stuck in jams without being productive.

Right now, without a car, I've got more time and spare cash to save, invest and spend on more important things like my family.

If you realllyyy need a car, the used car market is a great place to start.

Perspective from the undergrowth

There are many more reasons why I'm retiring in Singapore such as a fair and responsible government (don't get your news from Reddit), no capital gains tax, English as the primary language, reasonable income tax tiers, and a strong currency. But the above are my main reasons.

Ultimately, all these reasons help to ensure you can achieve wealth easily. By removing unnecessity expenses (cars for example), you'll have more cash on hand to either spend or invest.

If you're wondering why Singapore ranks #2 of the world's most expensive place to retire in, it's because cars and housing is factored in. Cars are exorbitantly expensive because of how much certificate of entitlement (COEs) cost, which goes up or down depending on how many cars are there on the road and housing is definitely not cheap here.

These are prices just for COE - just a certificate! Source

As for housing, if you intend to reside here for long, pursue permanent residency or even citizenship as you'll enjoy plenty of housing subsidies and grants by the government for public housing. However, private properties start at SGD1 million, and because it's private, you will not receive any grants nor subsidies.

Public housing in Singapore aren't cheap or low in quality. Source

šŸŒ± Keen to know more? Ask me directly in Discord, right here for free!

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