You could say retirees probably won’t care about the raise tuition, given that their children (if any) are unlikely to be of school age. So what do retirees spend and what does their typical budget look like? This will depend on how the basic necessities are defined and the type of life they want to achieve in their golden years.
A study by the Lee Kuan Yew School of Public Policy shed some light on this topic. They identified the amount of income and the list of things necessary for a minimum standard of living (according to the standards of society). From there, you can then calculate the basic income required to achieve that quality of life.
The 2021 study showed that for people aged 65 and over, a couple would need S$2,419 per month, while a single person would need at least S$1,421. The top three expenses would include food (29.2%), recreation and culture (19.7%), and housing and utilities (18.4%).
The long-term inflation rates for these categories are 2.6% per year, 1.2% per year and 2.2% per year. So, as a general rule, one should take these price increases into account when planning one’s future budget.
CONTROLLING INFLATION: A LOOK AT VARIOUS ASSETS
The latest report from Singapore’s household sector shows how the wealth of an average household is distributed. Without surprise, property accounted for the largest share (43.9%) of the fact that real estate was one of Singaporeans’ biggest purchases. The next two largest holdings are deposits and CPF (19.8% and 18.8%). Stocks and securities make up the smallest allocation at 8.4%.