SINGAPORE: Retiring abroad with a modest nest egg is a dream many Singaporeans hold, and Taiwan, with its lower cost of living and friendly locals, is a popular choice.
However, the feasibility of retiring in Taiwan with just $600,000, a figure often cited as a minimum for early retirement in Singapore, is worth exploring.
According to a comprehensive guide published on TheMoneyKnowHow.com, the feasibility of such a move with $600,000 largely depends on the lifestyle one is willing to lead and the cost of living in the destination country.
With its lower cost of living than Singapore, Taiwan could stretch this figure further. However, it’s crucial to consider that $600,000 might not cover all expenses indefinitely, especially if one plans to live comfortably without additional income sources.
Experiences of Singaporeans in Taiwan
Several Singaporeans have shared their experiences of retiring in Taiwan, highlighting the positives and challenges. One couple on Salary.SG Forum said the lower cost of living in Taiwan than in Singapore was a significant factor that made their retirement more feasible.
They found that their savings could cover their expenses more comfortably, allowing them to enjoy a more relaxed lifestyle.
While the lower cost of living in Taiwan is a significant advantage, retirees should also consider other factors, such as healthcare costs, which can vary significantly from Singapore’s.
Additionally, the Taiwanese retirement system, which includes a mix of public and private pensions, could provide some support but might not be as robust as Singapore’s Central Provident Fund (CPF) system.
An article published on FocusTaiwan featured a survey of Taiwanese adults aged 50-64 who believe they will need an average of NT$8.37 million (equivalent to US$275,245) in savings to retire comfortably.
Based on this survey’s results, $600,000 is a good sum of money when deciding to retire in Taiwan.
Caveat
While it is possible for Singaporeans to retire in Taiwan with $600,000, it requires careful planning and a realistic assessment of expenses.
The lower cost of living in Taiwan can make this figure more manageable, but retirees should also consider additional sources of income or savings to ensure financial stability.
For those willing to adapt and live frugally, Taiwan offers a welcoming environment and a potentially more comfortable retirement than Singapore with the same savings.
Featured image by Depositphotos (for illustration purposes only)