‘I want to retire in 20 years’ — 26 y/o Singaporean Gen Z gets a sobering reality check on the true cost of quitting work by 45 in Singapore

SINGAPORE: At just 26 years old, Cheng Kai Xi has a bold dream: to hang up her office lanyard for good and retire by the age of 45. And she’s not alone.

According to CNA Insider’s Money Mind survey, a full 30% of Gen Zs in Singapore share that same vision of a blissfully early escape from the working world. And two-thirds hope to retire within the next 30 years or less. But for Kai Xi, it’s not just wishful thinking. It’s a spreadsheet-backed mission.

“I’m looking to retire by the age of 45,” she told financial planner So Sin Ting, Chief Client Officer at Endowus. “How much will I need?” Kai Xi asked to confirm the amount. The response was sobering…

The million-dollar reality check

“Well, (for retiring at the) age of 45, that’s a little bit aggressive,” Sin Ting replied, with the kind of gentleness used to cushion a financial gut-punch. “I think that you would need at least S$2 million at the age of 45 to retire.”

Let that sink in. Two. Million. Dollars. And that’s just for a basic retirement—one where you’re not popping champagne on a yacht every Sunday or flying first-class to Paris just because it’s Wednesday.

In addition, the figure assumes you’ve already paid off your housing and plan to spend about S$2,000 a month in today’s money, which, after inflation, balloons to around S$35,000 annually in 2045.

That number includes four decades of post-retirement life. “The total cash flow that you need is about S$2.1+ million over 40 years,” Sin Ting calculated.

That’s when the dollar signs really started adding up.

Can a Gen Z really pull this off?

So, how does one climb Mount Financial Freedom with a modest backpack and only one year into full-time employment?

Sin Ting ran through the math: Assuming a moderate return of about 7% annually, you need an initial investment of S$172,000+, or a monthly investment of S$1,321 starting now.

That’s more than a typical BTO downpayment—and you probably don’t even get a house to live in at the end of it.

Still, there’s good news for those who aren’t rolling in a six-figure inheritance. If you’re starting with S$50,000, you’ll need to invest about S$938 a month, said Sin Ting.

Kai Xi, who lives at home, decided to be even more ambitious. She plans to kick off with S$20,000 in investments and set aside S$1,168 a month, well above the standard 20% savings rule. That’s what happens when you skip avocado toast and move back in with mum and dad.

Building the safety net first

But before she throws all her cash into ETFs and index funds, Sin Ting urged caution. “I think you should first look at setting up an emergency fund. Life can be unpredictable sometimes,” she advised.

The magic number would be six months of expenses, saved and ready to go in case life throws a financial curveball—like retrenchment, a hospital stay, or a wedding you can’t RSVP ‘no’ to.

Fortunately, Kai Xi is already ahead of the curve here. But she’s also juggling another major financial milestone: owning her own home.

Juggling goals like a pro

“Other than retirement, I’m also thinking of saving for my own house,” she asked. “So, how do I do both?”

You’ll need to have separate investment portfolio goals, said Sin Ting. One for retirement and one for housing.

This means allocating funds differently depending on the timeline. Housing might be seven to ten years away, so that would go into a balanced portfolio—think 60% equities and 40% fixed income.

Retirement, on the other hand, is nearly two decades away. This allows for a more aggressive strategy, such as a full equities portfolio.

“I have a short-term liquidity fund, a medium-term housing goal in a balanced portfolio, and a long-term retirement plan in aggressive equity funds,” Sin Ting shared about her own strategy. “Investing is about taking calculated risks and being compensated for that.”

CPF: The invisible muscle in your financial plan

One often-overlooked asset in the retirement toolkit is your good ol’ friend and lifesaver, CPF.

“Think about how you can maximise your CPF (your pension money),” Sin Ting advised. It’s a significant part of our monthly income in Singapore. Consider topping it up, or even investing your CPF money, she advised further.

But there’s one more lever Kai Xi needs to pull: her income. She will need to increase her base to be able to grow it. Whether that means upskilling, taking on side gigs, or chasing promotions. You can’t simply save your way to millions without boosting how much you earn.

Perhaps she can draw inspiration from young Singaporeans like Darien and Joanna, who transformed their home into a multi-stream income engine, generating over S$3,000 to S$5,000 a month through practical, proven side hustles that are perfect for 2025.

You can read more about their story here: ‘We make S$5000/month!’ — Singaporean couple turns their S$1M condo into a passive income machine with 10 side hustle recommendations, working from home

And remember: keeping your money in cash isn’t as safe as it seems, either.

“Staying in cash is not risk-free. Your money gets eaten away by inflation,” Sin Ting warned. So that S$1,000 today will be worth less in ten years.

The automation advantage and levelling up your income

For those struggling with discipline, automation is your best friend, so you don’t have to always think about it or remember to do it.

“Try to automatically sweep a certain amount from your savings into your investment portfolio on a monthly basis,” Sin Ting suggested.

This way, “you’re dollar-cost averaging (growing your wealth) over time.”

Keep your eyes on the prize

So, how will Kai Xi know she’s on track?

“Review your investment portfolio at least once a year,” said Sin Ting. “You want to make sure your portfolios are still appropriate (aligned) with your goals and risk tolerance. If your personal circumstances change, you should adjust your investments (too).”

In other words, financial planning isn’t always just a “set it and forget it” microwave meal. It’s more like meal prep—annoying at times, repetitive at other times, but ultimately delicious when done right.

Facing her financial future…

After crunching the numbers and mapping out her plan, Kai Xi is now facing her financial future with newfound clarity.

Armed with a detailed investment plan, a high savings rate, and expert advice, she’s more than just hopeful—she’s strategic.

She now knows what she needs to do to achieve her goals with confidence and realism.

Will she really make it? Will she actually retire at 45? Only time—and the markets—will tell. But one thing’s for sure: this Gen Z isn’t just dreaming. She’s all for doing the math to make her dream, not just a dream.

Watch the full CNA Insider Money Mind episode below to see how Kai Xi maps out her retirement plan with expert advice and guidance as she embraces the financial truths every young Singaporean should know about that could change your own financial and future game plan.

No group is embracing the hustle culture harder than Gen Z. Around 40% of them have already taken on side gigs, not necessarily because they love it, but because they need the extra income to retire early, just like Kai Xi.

And here’s where it gets inspiring: many of these young workers are turning what began as side hustles into full-blown six-figure careers. Let’s dive into how they’re doing it—and how we in Singapore can also replicate that with another 5 genius ways Singaporean Gen Zs can turn side hustles into six-figure careers with just $5 or less and a smartphone