How to Retire in Singapore: Costs, Visas and More

Singapore is a tiny country made up of 64 islands clustered around the end of the Malay Peninsula. Retiring in Singapore is an attractive prospect for many, thanks to its vibrant culture, world-class healthcare, and high standard of living. However, understanding the intricacies of how to retire in Singapore requires careful planning and consideration of several key factors. From the costs associated with living in one of Asia’s most dynamic cities to navigating the visa requirements, potential retirees need to be well-informed to make the transition smooth and successful.

If you are considering the Lion City as your retirement destination, then it is wise to partner with a financial planner to help make your dream of retiring in Singapore a reality.

Cost of Living and Housing in Singapore

Singapore is less expensive than the largest U.S. cities, such as New York, but more expensive than smaller American cities like St. Louis, according to Numbeo, a cost-of-living database. On average, rent in a city centre in the U.S. is 85% lower than in Singapore, but that changes when comparing this Southeast Asian nation with the largest U.S. metropolitan areas.

For example, you can expect to pay about $5,231.56 per month in rent for a one-bedroom apartment in central New York City and about $11,386.09 for a three-bedroom apartment. In central Singapore, you can expect to pay about $3,926.19 per month for a one-bedroom apartment and about $7,778.95 for a three-bedroom apartment.

How Visas Work in Singapore

Singapore does not offer a specific retirement visa, but they have several options for retirees to obtain a residence permit.

First, if you worked in Singapore before the age of 50, you might have an option to continue your visa into retirement. If you want to move to Singapore after age 50, you can use the Singapore Entrepreneur Pass or the EntrePass, which requires that you start a company with paid-up capital of at least $50,000.

After two years of acquiring the EntrePass and permanent residency, you can apply for citizenship. However, you’ll need to show significant “financial merit” and a relation to a Singaporean citizen for government approval.

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.

Healthcare in Singapore

SmartAsset Guide: How to Retire in Singapore

Singapore has some of the best healthcare in Asia. According to Knoem’s healthcare efficiency index, Singapore’s healthcare system is rated second in the world. This index takes both life expectancy and health expenditure into account. Singapore does not provide free healthcare to expats, so retirees must have private healthcare insurance. Insurance for expats can cost $300 per month or more.

Even with insurance, people may be required to pay for expenses out of pocket, including elective procedures and deductibles. Even without full coverage insurance, a trip to the doctor can cost as little as $25.

The cost of medication in Singapore can vary. Typically, general practitioners and specialists will dispense medications after you’ve seen a doctor. In general, private insurance will cover the cost of medications.

Singapore Taxes for Retirees

All citizens and residents of Singapore who work in the country must pay into the Central Provident Fund. Foreigners who do not work in Singapore do not have to pay into the Central Provident Fund, even if they are residents. There may be a tax on pension income depending on how much you receive.

U.S. Citizens are generally required to file a tax return each year. To avoid paying taxes twice, especially on pension income, it is wise to work with a financial planner and a tax professional who understands the Singapore tax system’s intricacies. Income is taxed at a maximum of 24% in Singapore, so you may want to change your tax status to Singapore if you earn over a certain amount.

Retire in Singapore – Safety

According to the U.S. Department of State, personal crime in Singapore is very low. The department also notes that Singapore topped the list as the world’s safest city in the categories of personal and infrastructure security, according to the Economist Intelligence Unit Safe Cities Index. However, like other major cities, expats need to watch out for pickpocketing, theft of unattended property and purse snatching.

Bottom Line

Retiring in Singapore offers a unique blend of modern amenities and cultural richness, making it an attractive destination for many. However, understanding the financial and logistical aspects is crucial for a smooth transition. The cost of living in Singapore is notably high, with housing and healthcare being significant expenses. It’s essential to budget carefully and consider options like the Central Provident Fund (CPF) for financial security. Ultimately, retiring in Singapore requires thorough planning and a clear understanding of both the financial commitments and visa requirements.

Tips on Affording Retirement

Consider talking with a financial advisor before moving abroad. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
While many Americans would find it difficult to retire to Singapore on their Social Security benefits alone, it may be possible to do that if you also had a pension. Use a Social Security calculator to see what you can expect to receive from Uncle Sam in retirement.