Karen Tang, CFP®: Certified Financial Planner in Singapore

Karen Tang, CFP® Comments On: Singapore’s Median Household Income Up 2.8% in Real Terms in 2023

On 7 February 2024, Business Times published a news article titled “Singapore’s median household income up 2.8% In real terms in 2023”.

This is good news for Singapore residents! An inflation-adjusted rise in median income of 2.8% is a very healthy indicator for Singapore’s economy. 

The news article reported that Singapore’s median monthly household income has increased from $10,099 to $10,869, which is a positive sign. However, it is essential to note that the income growth rate on a per household member basis has slowed down in 2023.

Inflation is becoming a more persistent feature of the economic landscape. Given the rising cost of living in Singapore, it is imperative for households to proactively seek avenues for wealth accumulation beyond traditional income sources like fixed deposits. 

By investing smartly and methodically, following the
evergreen principles of investing, you can mitigate the effects of inflation while aiming to optimise returns over the long term. 

Diversification is key
in investment portfolios. By spreading investments across various asset classes like stocks, bonds, and real estate, investors can take advantage of the magic of compound interest to increase their wealth over time. 

Remember, investing is not all about chasing the highest returns; it’s also about
aligning your financial objectives with risk tolerance and time horizon.  

Whether the goal is retirement planning, funding education, or creating a financial safety net, suitable strategic investment approaches can help you achieve these aspirations amidst economic uncertainties.

Change is the only constant. What we can do to
respond to changes is to be aware and to take a proactive stance towards our own financial management. Staying abreast of market trends, diversifying investments prudently, and seizing opportunities as they arise are integral steps towards securing a more stable financial future for ourselves and our families. 

Questions to ask yourself:

  • Do you have a well-considered (i.e. ‘bulletproof’ and holistic) financial plan that can shield you and your loved ones from the potential uncertainties in life?
  • What steps have you taken so far to grow your money against inflation?
  • Are you investing in such a way that allows you to sleep soundly at night?
  • Are you on track to reaching your goals? If not, what are you doing about it?

If you are at the pre-retirement phase i.e. 5 to 7 years away from your planned retirement and you want clarity and assurance on your retirement preparedness, I will be happy to analyse your cash flow and net worth and identify any shortfalls (and at what age), gaps and ‘blind spots’ that you may have missed out. 

For greater visibility on where you stand in your current financial plan, feel free to contact me at +65 62528500 or head to karentang.sg to schedule a discussion. 

To your best!

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