Tag Archives: investing

Financial Exit Planning: Preparing for Life After Singapore

Posted on by
Reply

Singapore is one of the best places in the world for expats to grow their wealth — low taxes, access to global markets, and a vibrant financial ecosystem. But what happens when your time here comes to an end?

Many expats overlook financial exit planning until the very last moment, leaving them exposed to unnecessary taxes, lapses in insurance, or even frozen assets. Whether you’re relocating for work, moving home, or shifting to a third country, the decisions you make before you leave Singapore will shape your financial security for years to come.

In this article, we’ll cover the key areas expats need to consider when planning their financial exit from Singapore.


1. Investments & Bank Accounts


• Local Bank Accounts: Many banks require you to maintain residency to keep an account open. Check whether you’ll need to close your account or maintain a minimum balance to keep it active.
• Brokerage & Investment Accounts: Ensure your investments can continue to be managed once you’re no longer Singapore-resident. Some platforms restrict services if you move to certain countries.
• Repatriation of Funds: Think about exchange rates, transfer costs, and the best timing for repatriating savings.

Tip: Keep at least one Singapore account open if possible; it makes final bills, tax refunds, and loose ends much easier to manage.



2. Retirement Savings


• Supplementary Retirement Scheme (SRS): If you’ve contributed to SRS, know the withdrawal rules. Premature withdrawals (before retirement age) are taxed at your prevailing rate, but timing can reduce your liability.
• Pensions & Overseas Schemes: Map out how your Singapore savings interact with home-country pensions or new schemes in your destination.

Tip: Exiting at a time when your taxable income is low (e.g., between jobs) may make an SRS withdrawal more efficient.



3. Insurance Cover


• Medical Insurance: Corporate coverage typically ends with your employment. Will you be uninsured between leaving Singapore and settling in your next country? Consider a global health policy that travels with you.
• Life Insurance: Review whether your policy is portable; some remain valid worldwide, others don’t.
• Property & Liability: If you own property in Singapore, make sure you keep the right coverage in place after departure.

Tip: Don’t cancel health coverage until you have new protection in place abroad. Gaps in cover can leave you vulnerable.



4. Tax Implications


• Final Year of Assessment: You’ll need tax clearance (IR21) from IRAS before leaving. Your employer is obliged to withhold your salary until this is processed.
• Double Tax Treaties: Check whether your home country has a tax treaty with Singapore to avoid being taxed twice on the same income.
• Capital Gains: While Singapore doesn’t tax capital gains, your new country might. Selling assets before departure may sometimes be more efficient.

Tip: Work with a cross-border tax adviser if you’re moving to a higher-tax jurisdiction — it could save you significantly.



5. Estate Planning


• Wills & Beneficiaries: Review whether your Singapore will (if you have one) still applies in your next country.
• Cross-Border Assets: Holding assets in multiple countries can complicate probate. Consider trusts or nominations for smoother transfer.
• Inheritance Rules: Civil law countries (like France, Italy, or Spain) have forced heirship rules, which can override your wishes.

Tip: Update your will as part of your exit checklist — one less stress when moving abroad.



6. Practical Exit Checklist



Before you book your one-way ticket, make sure you’ve ticked off:
• ✅ Tax clearance (IR21) filed and approved
• ✅ Bank accounts updated or closed
• ✅ Investments reviewed for cross-border impact
• ✅ Insurance (health, life, property) secured for transition
• ✅ Wills and estate plan refreshed
• ✅ Professional advice sought for tax and repatriation



Leaving Singapore isn’t just about packing boxes and booking movers… it’s about making sure your wealth, health cover, and legacy travel with you. By preparing ahead, you can exit smoothly and avoid costly surprises.

Your financial journey doesn’t end at Changi Airport, it evolves. With careful planning, you can take the benefits of your time in Singapore with you, wherever life leads next.

If you’re preparing to leave Singapore, whether in six months or six years, now is the time to get your finances in order. For more expat-friendly tips on investing, insurance, and financial planning, visit danielleteboul.com for the rest of my articles— your guide to managing money as an expat in Singapore.

Expat Tax Myths: What You Really Need to Know

Posted on by
Reply

When it comes to money, few words spark more confusion or anxiety than taxes. And if you’re an expat in Singapore, chances are you’ve heard all sorts of conflicting advice: “Singapore is a tax haven.” “I don’t need to file anything.” “I’ll just keep everything offshore.”

The truth? While Singapore’s tax system is simple compared to many countries, there are still rules you need to understand, and myths that can cost you money, or worse, land you in trouble.

In today’s article, I’ll break down the biggest expat tax myths I hear time and again, explain what’s fact and what’s fiction, and share practical tips to make your financial life smoother.



Myth 1: “Singapore has no tax.”

Let’s start with the most common misconception.

Truth: Singapore does have tax — but it’s relatively low.
• Personal income tax is progressive, with rates starting at 0% and capped at 24% (from 2024 onwards).
• There’s no capital gains tax, no inheritance tax, and no tax on dividends from Singapore companies.

What this means for you: While you will pay income tax on your Singapore salary, many investment gains are tax-free locally. That makes Singapore an attractive hub for building wealth, but don’t confuse low tax with no tax.



Myth 2: “If I’m paid offshore, I don’t pay Singapore tax.”

This one trips up a lot of newcomers.

Truth: If your income relates to work you perform in Singapore, it is taxable here, regardless of whether it’s paid into a Singapore or overseas bank account.

Example: If you’re working in Singapore but your employer pays you in pounds or euros into a UK or EU account, Singapore’s Inland Revenue Authority (IRAS) still considers it taxable.

Smart tip: Always declare all employment income tied to your work in Singapore. Hiding it doesn’t make it invisible and penalties can be steep.



Myth 3: “I don’t need to file anything if my employer withholds tax.”

Truth: In Singapore, the tax system is not a Pay-As-You-Earn (PAYE) system. Unlike in the UK or Australia, your employer doesn’t deduct income tax from your monthly salary. Instead, you file once a year with IRAS, usually in April.

Smart tip: Mark tax season in your calendar. If you’re on an Employment Pass, your company may file an employer return, but you are still responsible for filing your personal return unless specifically waived.



Myth 4: “If I’m leaving Singapore, I can just go.”

Truth: Expats leaving Singapore must go through a process called tax clearance. This means your employer withholds part of your final salary until IRAS confirms you’ve settled all outstanding taxes.

Smart tip: If you’re planning to leave, give your employer at least one month’s notice so they can prepare your tax clearance. Otherwise, your last salary may be delayed…not ideal when you’re moving countries…



Myth 5: “Offshore investments are tax-free everywhere.”

Truth: In Singapore, yes — but your home country or your next destination may still tax your income or gains.

Example: A British expat investing offshore may not owe tax in Singapore, but if they move back to the UK, HMRC will want its share (after you fall out of the FIG regime). Similarly, Italian or Australian residents often face global tax rules when they return home.

Smart tip: Think cross-border. Always consider not just where you are today, but where you might move next. Offshore wrappers, trusts, or global investment structures can help mitigate double taxation, but only if set up properly.



Myth 6: “I’m not here long enough for tax to matter.”

Truth: Even short-term expats are subject to Singapore tax if they stay over 60 days in a calendar year. If you stay over 183 days, you’re treated as a tax resident, which often means lower rates.

Smart tip: Keep track of your days. If you’re close to 183, it might make sense to extend slightly and benefit from resident rates.



How to Stay Tax-Savvy as an Expat
1. Know your residency status — tax rules differ for residents and non-residents.
2. Keep records — contracts, payslips, and bank transfers are essential if IRAS asks questions.
3. Plan ahead — consider how today’s decisions will affect you when you eventually repatriate.
4. Get advice when needed — especially if you have assets, property, or income in multiple countries.



Taxes don’t need to be scary, but ignoring them can be costly. By separating fact from fiction, you can avoid surprises, plan smarter, and keep more of your hard-earned money working for you.

Singapore offers expats a unique opportunity: low taxes on income and investments, and a simple filing process compared to many other countries. The key is knowing the rules — and not falling for the myths.

If today’s blog post helped clear up some confusion, make sure you follow the this & the podcast so you don’t miss out more, like where we’ll compare private banking and independent advisers, and help you decide what’s right for you as an expat.

The Real Cost of Being an Expat in Singapore: What You Need to Know

Posted on by
Reply

Singapore regularly tops the charts as one of the world’s most expensive cities. For many expats, this comes as no surprise: the glossy high-rises, Michelin-starred restaurants, and international schools paint a picture of luxury. But what does expat life here really cost? And how do you avoid falling into the “expat trap” of overspending without realising it?

In this article, I’ll walk you through the true costs of living in Singapore as an expat, the hidden expenses you might not expect, and the strategies you can use to enjoy life here without sacrificing your long-term financial goals.



Housing: Your Biggest Expense

For most expats, rent is the single largest monthly outgoing.


• Rental market realities: A three-bedroom condo in central Singapore can easily run between SGD 7,000–10,000 per month. Even outside the central districts, newer condos often sit around SGD 4,000–6,000.
• Hidden costs: Many first-timers don’t factor in agent commissions, stamp duties, or the two-month deposit. Moving costs, furniture, and utilities quickly add up.
• Lifestyle creep: It’s easy to be lured into a glossy condo with pools, gyms, and concierge services, especially when “everyone else in the expat circle” seems to live that way.

Smart strategy: Decide early on what you value most – space, location, or amenities. Look slightly outside prime districts (think Novena, East Coast, or fringe areas) for significant savings. And don’t be afraid to negotiate: in softer rental markets, landlords often prefer securing a stable tenant over holding out for a higher rate.


Schooling & Education



If you have children, education can rival rent as your biggest financial commitment.


• International schools: Annual tuition can range from SGD 25,000–40,000 per child, excluding uniforms, extracurriculars, and trips.
• Hidden fees: Application costs, technology levies, and even bus transport can be surprisingly steep.
• Waitlists: Some of the most popular schools require application years in advance, pushing parents to consider multiple options or last-minute relocations.

Smart strategy: Budget well beyond tuition. If you know you’ll fund university abroad later, start early with dedicated investment accounts. Offshore education savings plans or a globally diversified portfolio can help smooth out future costs.



Healthcare Costs



Singapore has excellent healthcare, but it’s not cheap, especially for foreigners.
• Corporate coverage: Many expats rely on their employer’s health plan, but coverage limits can be low, and dependants aren’t always included.
• Out-of-pocket surprises: A GP visit might cost SGD 40–70, but specialist consultations or scans can easily run into the hundreds. Private hospital stays can cost thousands per night.
• Insurance gaps: Without an Integrated Shield Plan or international medical insurance, you could face hefty bills for surgery or long-term care.

Smart strategy: Review your coverage early. If your corporate plan is thin, consider supplementary insurance while you’re still healthy and eligible, it’s far cheaper to buy cover before you need it.



Transport & Lifestyle


Transport is another area where costs vary dramatically.
• Public transport: The MRT and bus system is efficient and affordable, with most journeys costing under SGD 2.
• Owning a car: This is where costs explode. Between the Certificate of Entitlement (COE), insurance, maintenance, and petrol, monthly costs can reach SGD 2,000–3,000 easily.
• Eating out: Hawker food is famously affordable at SGD 5–8 per meal. But expats often gravitate towards restaurants, cafés, and bars — where a dinner for two with wine can top SGD 200.
• Alcohol & entertainment: Import duties make alcohol pricey. A single cocktail may cost SGD 20–30, and wine markups are significant.

Smart strategy: Strike a balance. Enjoy hawker culture during the week and save splurges for weekends. If you don’t need a car, skip it. Grab and GoJek are usually far more cost-effective.



Travel & Repatriation



One of the joys of being based in Singapore is its proximity to Asia-Pacific destinations — Bali, Tokyo, Bangkok, Sydney are all a short flight away. But travel costs add up.
• Family flights: A return trip to Europe or Australia for a family of four can exceed SGD 6,000–10,000.
• Relocation costs: Few people factor in eventual departure expenses: shipping, storage, pet relocation, and temporary accommodation while waiting for visas.

Smart strategy: Treat travel as part of your annual budget. Use miles programmes strategically, book flights early, and build a “repatriation fund” to cover the costs of your eventual move.



The Hidden Costs Nobody Talks About



Beyond the obvious categories, there are smaller but significant costs:

• Helpers: If you employ a domestic helper, costs include monthly salary (SGD 600–900), the foreign worker levy, insurance, and annual leave flights.
• Social life: The “expat bubble” often encourages frequent brunches, memberships, and nights out, which can quietly add up to thousands per month.
• Emotional cost: While harder to quantify, there’s also the mental fatigue of keeping up with social expectations and lifestyle pressures.



How to Take Control

The good news? With planning, you can enjoy Singapore’s lifestyle without draining your wealth.
• Build a realistic budget: Track actual expenses for 3–6 months to get a true picture of your spending.
• Set guardrails: Decide which luxuries matter (maybe travel) and which don’t (maybe daily fine dining).
• Automate savings: Pay yourself first. Direct part of your salary into investments before lifestyle costs eat it up.
• Think long term: Singapore’s high salaries are an opportunity. Use these years to accelerate wealth building rather than watching it slip away.




Singapore is a wonderful place to live and work, offering safety, opportunity, and a high quality of life. But it’s also easy to overspend if you don’t know the real costs of expat living. By approaching your finances with intention, you can enjoy the best of what Singapore has to offer and secure your long-term financial independence.

Navigating Interest Rate & Inflation Trends

Posted on by
Reply

If you’ve been in Singapore the past few years, you’ve probably noticed two things: your grocery bill has gone up, and your mortgage repayments back at home might have too. Interest rates and inflation don’t just impact big economies – they hit everyday expats in very real ways.

The challenge? These two forces often work together to squeeze your finances from both ends. Inflation erodes your purchasing power, while higher interest rates increase the cost of borrowing. But with the right strategies, you can protect yourself, and even find opportunities.

1. How Interest Rates & Inflation Work Together


• Inflation: Prices rise, your money buys less.
• Interest Rates: Central banks adjust rates to try to control inflation, which impacts loan costs and investment returns.
• For Expats: You might be earning in SGD, paying loans in another currency, or vice versa…meaning you face multiple layers of impact.



2. Impact on Mortgages & Loans


• Floating Rate Loans: Your repayments can rise quickly as interest rates climb.
• Fixed Rate Loans: Offer short-term protection but may revert to higher rates later.
• Multi-Currency Loans: Add currency risk to the mix; a weakening home currency can make repayments more expensive.

If you’re planning to be in Singapore for several years, explore refinancing or partial prepayment to lock in manageable terms.



3. Investment Strategies in High Inflation


• Equities with Pricing Power: Companies that can pass increased costs to customers.
• Inflation-Linked Bonds: Adjust payouts based on inflation rates.
• Real Assets: Property, REITs, and infrastructure funds often provide inflation protection.
• Shorter Duration Bonds: Less sensitive to rising rates than long-duration bonds.



4. Cash & Emergency Funds


• Keep enough liquidity for safety (3–6 months of expenses), but avoid holding excessive cash, as inflation will erode its value.
• Consider short-term fixed deposits or money market funds for better returns without high risk.



5. Currency Management

If you’ll eventually move your money to another currency (for retirement or repatriation), inflation and interest rate differences between countries matter.
• Diversify across currencies.
• Use hedged share classes for global funds where appropriate.



6. SRS & Long-Term Planning

When rates rise, bond-heavy SRS portfolios may underperform. Consider:
• Increasing equity exposure if suitable for your risk tolerance.
• Adding assets less sensitive to rate hikes.


Interest rates and inflation don’t need to derail your financial plans. By actively managing your loans, investments, and currency exposure, you can turn economic headwinds into manageable breezes, and even use them to your advantage.

Estate Planning & Wealth Transfer Across Jurisdictions

Posted on by
Reply

Living abroad often makes us focus on the exciting parts of expat life – new opportunities, travel, and career growth. But for expats in Singapore, there’s one area that’s often pushed to the bottom of the to-do list: estate planning.

And here’s the thing: Singapore doesn’t have an inheritance tax, but that doesn’t mean you can skip estate planning. In fact, the international nature of expat life means your assets might be scattered across multiple countries, each with their own tax rules and legal systems. Without a plan, your loved ones could face delays, legal disputes, and even unnecessary taxes.



1. Why Estate Planning Matters for Expats


• Multiple Jurisdictions: Bank accounts in Singapore, property in your home country, investments offshore — each could be subject to different inheritance laws.
• Family in Different Countries: If heirs live abroad, the probate process may be more complex.
• Tax Exposure: Even if Singapore doesn’t tax estates, other countries (including your home country) might tax worldwide assets.



2. Wills: One or Multiple?


• Single International Will: Covers all assets worldwide. Simpler, but may take longer to execute if assets are in multiple jurisdictions.
• Separate Country-Specific Wills: Useful if you have significant assets in countries with complex probate systems (e.g., UK, Australia). These must be carefully drafted to avoid contradictions.
Tip: In Singapore, a will must be signed in the presence of two witnesses (who are not beneficiaries).



3. Understanding Cross-Border Inheritance Laws


• Forced Heirship: In some countries, you can’t disinherit certain relatives, regardless of your will (e.g., France, Spain).
• Community Property: In some jurisdictions, marital assets are split equally regardless of who earned them.
• Domicile Rules: Your domicile can affect how your estate is taxed globally — it’s not always the same as your residency.



4. Using Trusts for Asset Protection & Control

Trusts can:
• Avoid probate (assets transfer directly to beneficiaries).
• Offer tax planning benefits in certain jurisdictions.
• Protect assets for children or vulnerable beneficiaries.

Types relevant to expats:
• Revocable Living Trust: Flexible, but may have less tax benefit.
• Discretionary Trust: Trustees decide how and when beneficiaries receive assets.



5. Don’t Forget Digital Assets

Online bank accounts, cryptocurrency wallets, domain names, cloud storage — all need to be included in your estate plan with clear access instructions.



6. Life Insurance as a Wealth Transfer Tool


• Can be used to equalise inheritances between beneficiaries.
• May provide liquidity to pay taxes in other jurisdictions without selling assets.



7. Keep Your Plan Updated

Review your estate plan when you:
• Move to a new country.
• Buy or sell property abroad.
• Change marital status or have children.


Estate planning isn’t morbid — it’s one of the greatest gifts you can give your loved ones. As an expat in Singapore, you have the unique challenge (and opportunity) to design a cross-border plan that keeps your assets protected and your wishes honoured, wherever life takes you.

Financial Independence for Expat Women: Start Investing Today

Posted on by
Reply

For many expat women, life in Singapore can feel like a dream, career opportunities, vibrant culture, and a safe environment. But beneath the excitement, there’s a challenge: living abroad can disrupt your long-term financial security. If you’re relying on a partner’s income, pausing your career, or simply unsure how to start investing, financial independence might feel out of reach.

The truth? You don’t have to be a finance expert to take control. You just need a plan, a willingness to start, and the right strategies tailored to life as an expat in Singapore.


1. Why Financial Independence Matters More for Expat Women


• Mobility Risk: Your life in Singapore might be tied to a visa, a job, or a partner’s contract.
• Career Gaps: Many trailing spouses step back from work temporarily, impacting savings and pension contributions.
• Currency & Retirement Planning: You may be earning in SGD but plan to retire in GBP, EUR, AUD, or elsewhere.

Financial independence means being able to make life choices without being financially dependent on anyone else; whether that’s staying in Singapore, moving back home, or starting fresh somewhere new.



2. Start with a Clear Financial Picture


• List your assets: bank accounts, investments, property, pensions.
• Identify liabilities: loans, credit cards, mortgages.
• Track your monthly spending (yes, even the Grab rides and Cold Storage wine runs).

Once you know your numbers, you can set realistic goals for investing and saving.



3. Build an Emergency Fund

Your first safety net is liquidity.
• Aim for 3–6 months of essential expenses in an accessible account.
• If you’re on a dependent visa, err towards the higher end…your income options might be more limited in an emergency.



4. Understand Your Risk Profile

As an expat, your risk tolerance might differ from when you lived back home. Factors to consider:
• Time horizon until you need the funds.
• Currency exposure.
• Possible relocation in the short to medium term.



5. Start Investing — Even Small Amounts Count

Common starting points for expat women in Singapore:


• Global Equity Funds: Diversified exposure to companies worldwide.
• Exchange-Traded Funds (ETFs): Low-cost, transparent, and easily tradable.
• SRS Account: Tax-deferral benefits while you’re in Singapore.



6. Don’t Forget Retirement Planning

If you’re not contributing to a pension scheme in Singapore (CPF is for citizens and PRs), you’ll need to make private arrangements. This might mean:
• Continuing contributions to a home-country pension.
• Using investment portfolios to create a retirement income stream.
• Planning for currency conversion later in life.



7. Protect What You’re Building


• Life and health insurance to cover unexpected events.
• Income protection if you’re working.
• Critical illness cover if affordable.


8. Leverage Your Community & Resources

Join local women’s finance networks, attend investment workshops, and connect with advisors who understand both the Singapore market and cross-border planning.


Financial independence isn’t about amassing a fortune overnight. It’s about making consistent, informed decisions that put your future in your own hands — no matter where in the world you are. The earlier you start, the greater your options will be.

Inflation-Proofing Your Portfolio in Singapore

Posted on by
Reply

Singapore might be one of the most expensive cities in the world, but for many expats, the hidden cost isn’t just rent or coffee; it’s the slow erosion of your purchasing power. Inflation is a quiet thief. If you’re earning, saving, or investing in Singapore, you need a strategy that works now and in the future.

This guide will show you how to inflation-proof your portfolio without taking unnecessary risks, and without ignoring the fact that, as an expat, your financial life may span multiple currencies and countries.

1. Understand How Inflation Hits Expats in Singapore


For locals, inflation is mostly about cost of living. For expats, it’s a triple hit:


• Local inflation — price rises in SGD for housing, food, and services.
• Imported inflation — the cost of goods from abroad.
• Currency erosion — if your savings or income are tied to a weakening home currency.

Example: If you’re paid in SGD but plan to retire in GBP, you have to watch both Singapore’s inflation rate and the SGD-GBP exchange rate.


2. Diversify Across Asset Classes


No single investment will protect you perfectly, but a balanced mix can give you resilience.


• Equities: High-quality companies with pricing power can pass costs to customers.
• Bonds: Shorter-duration bonds protect better in rising-rate environments; inflation-linked bonds adjust payouts in line with inflation.
• Real Assets: Property (physical or REITs) and commodities can hedge against rising prices.
• Alternative Investments: Infrastructure funds or private equity (if suitable for your profile).



3. Use Currency Hedging Wisely


Many expats ignore currency risk until it bites. Consider:
• Hedged share classes of global funds.
• Holding a mix of home-currency and SGD assets.
• Using multi-currency accounts to park funds strategically.



4. Review Your SRS & Retirement Investments


SRS investments are in SGD, so if you plan to retire overseas, include an FX-diversification strategy. Inflation-proofing here might mean:


• Adding global equity funds.
• Including a small allocation to commodities or infrastructure.
• Avoiding locking into overly long fixed-income instruments when rates are rising.



5. Keep Cash — But Not Too Much


Cash is important for short-term stability, but inflation eats it fast.
• Keep 3–6 months’ expenses in an easy-access account.
• For surplus, use short-term fixed deposits or money market funds.



6. Regularly Rebalance


Inflationary periods can quickly skew your portfolio allocation. Make annual or semi-annual rebalancing a habit.


Inflation isn’t a storm to be waited out, it’s a tide you have to swim against. With the right asset mix, currency strategy, and regular reviews, your portfolio can not just survive but thrive in Singapore’s evolving economic climate.

How to Make the Most of Your SRS (Supplementary Retirement Scheme) as an Expat

Posted on by
Reply

As an expat living and working in Singapore, you’re likely looking for smart, tax-efficient ways to save and invest during your time here. But with limited access to local schemes like CPF, and the potential for a transient lifestyle, long-term financial planning can feel more complicated than it needs to be.

That’s where the Supplementary Retirement Scheme (SRS) comes in.

Many expats are unaware they’re eligible to participate, or dismiss it as something only Singaporeans benefit from. But in reality, SRS is one of the most underutilised and valuable tools available for high-earning foreigners living in Singapore—especially when it comes to reducing tax and building investment wealth.

In this article, we’ll explore what SRS is, why it matters for expats, and how to make the most of it while you’re here.

What Is the Supplementary Retirement Scheme?

The SRS is a voluntary savings programme launched by the Singapore government to encourage individuals to save for retirement, while also providing immediate tax benefits.

While CPF is mandatory only for Singapore Citizens and Permanent Residents, SRS is open to everyone, including foreign professionals. The scheme is designed to:

  • Reduce your taxable income in the current year
  • Provide a flexible investment account
  • Allow tax-deferred growth on your investments
  • Offer preferential tax treatment upon withdrawal (especially if planned strategically)

Why SRS Is Worth Considering as an Expat

Let’s start with the biggest benefit: income tax relief.

If you’re an expat working in Singapore and earning a relatively high income, your marginal tax rate could be anywhere from 11.5% to 24%. By contributing to an SRS account, you can reduce your taxable income and pay less tax each year.

Example:

Say you’re earning SGD 160,000 a year. If you contribute the maximum SGD 35,700 to your SRS account, that amount is deducted from your taxable income—potentially saving you over SGD 5,000 in tax, depending on your personal situation.

This is especially valuable if:

  • You’re in a high tax bracket
  • You expect to remain in Singapore for at least a few more years
  • You’re already maximising other basic reliefs (like earned income relief, spouse relief, etc.)

How Much Can You Contribute?

As of now, the SRS annual contribution cap for foreigners is SGD 35,700, compared to SGD 15,300 for Singaporeans and PRs.

You can contribute any amount up to this limit each calendar year. Contributions must be made by 31 December to count toward that year’s tax relief.

What Can You Invest in Through SRS?

SRS contributions sit in a designated account (held with DBS, OCBC or UOB) and can be left in cash or invested. If you leave them in cash, the interest earned is minimal, so it’s far more effective to deploy the funds into investments.

SRS-approved investments include:

  • Stocks and ETFs (listed on SGX or overseas exchanges)
  • Unit trusts and mutual funds
  • Fixed deposits
  • Bonds (corporate or government)
  • Insurance products (like endowment plans or retirement income plans)
  • REITs
  • Certain structured products

This gives you flexibility to align your SRS strategy with your risk appetite, time horizon, and return expectations.

When Can You Withdraw—and What Are the Tax Implications?

Here’s where it gets interesting.

You can begin making penalty-free withdrawals from your SRS account from the statutory retirement age that was applicable at the time of your first contribution. For now, that’s age 63. Withdrawals before this age incur a 5% penalty, unless for specific reasons (e.g. death, medical grounds, bankruptcy, or if you’re leaving Singapore permanently, subject to the account being open for 10 years).

But the real benefit is this: only 50% of each withdrawal is subject to tax.

This creates a powerful opportunity. If you’ve left Singapore and have no other taxable income in the country, you could potentially withdraw funds with little or no tax payable at all—especially if the withdrawals are spread over several years.

Example Scenario:

You’re retired, possibly still a tax resident in Singapore, and you start withdrawing SGD 40,000 per year from your SRS account. Only SGD 20,000 counts as taxable income. And if that falls below the basic income tax threshold, you pay nothing.

This is particularly appealing for expats who plan to retire overseas or in lower-tax jurisdictions.

What Happens if You Leave Singapore?

If you’re leaving Singapore permanently and don’t intend to return, you can withdraw your SRS funds penalty-free—but there’s a catch.

While the 5% early withdrawal penalty is waived, 100% of the withdrawn amount becomes taxable, not just 50%.

This often leads to a dilemma for expats: Do you withdraw everything now and take the tax hit, or leave the funds in SRS and defer withdrawal until you’re eligible for the 50% tax concession?

In many cases, it may make financial sense to keep your SRS account active—particularly if you’re confident you won’t need the funds for many years, and you can benefit from long-term tax-deferred investment growth.

That said, this decision should be based on your personal situation, including:

  • Your expected future income and tax residency
  • Whether you’ll still have ties to Singapore
  • How long until you reach statutory retirement age
  • Currency considerations and investment preferences

A financial adviser can help you model the impact of each option. One interesting point to take note is that if you are a non-resident at the time of withdrawal, the 50% will be taxed on Singapore’s highest tax rate (currently 24%). This may not be so much of an issue if you are already a high-tax income earner, but it is definitely something to take into consideration when you are planning your withdrawals.

Strategic Tips to Maximise Your SRS Benefits

1. Contribute consistently, especially in high-income years.

Use SRS to reduce taxable income when you’re in a higher bracket—it’s less effective when your income is already low or tax-exempt.

2. Don’t leave funds sitting in cash.

Once contributed, invest your SRS funds thoughtfully. Holding cash long-term defeats the purpose of tax-deferred investment growth.

3. Plan withdrawals carefully.

If you’re retiring or leaving Singapore, aim to spread withdrawals over 10 years after reaching the qualifying age to minimise tax.

4. Be mindful of currency exposure.

SRS contributions and most investment options are SGD-denominated. If you plan to retire in a different country, factor in exchange rate risks.

5. Coordinate with your global financial plan.

Ensure SRS complements—not conflicts with—your other retirement vehicles and tax structures across jurisdictions.

The Supplementary Retirement Scheme may not be as well-known as CPF, but for expats in Singapore, it can be a powerful tax and investment tool. It allows you to save smartly during your higher-earning years, benefit from immediate tax relief, and grow your wealth in a tax-deferred environment.

More importantly, it gives you flexibility. Unlike some national pension schemes, you control how your funds are invested and when (and how) you withdraw them.

With the right strategy, SRS can play a key role in your long-term financial independence—wherever you eventually call home.

Wondering if SRS fits into your expat financial strategy? Let’s have a conversation about how it could help reduce your tax bill and build wealth for the future.

How to Talk About Money With Your Partner (Without Causing an Argument)

Posted on by
Reply

Talking about money with your partner can feel… uncomfortable. Even couples who communicate well in every other area often find themselves walking on eggshells when it comes to finances. Whether it’s spending habits, saving goals, or income differences, money can trigger emotions—shame, fear, frustration—that make open dialogue tricky.

But here’s the truth: if you’re in a serious relationship, your financial lives are already intertwined—whether you’re talking about it or not. The good news? Learning how to have calm, constructive money conversations is a skill. And like any skill, it can be learned.

In this guide, we’ll walk through why money talks so often go wrong—and how to make sure they go right.

Why Money Conversations Feel So Personal

Before we dive into how to talk about money, it helps to understand why it’s such a minefield.

Money isn’t just numbers—it’s tied to identity, security, status, childhood experiences, and cultural expectations. That’s especially true for expat couples, where:

  • One partner may earn more than the other
  • One might be unemployed or on a career break
  • You may come from different financial or cultural backgrounds
  • Your family and retirement goals might be in totally different countries

All of this means that financial conversations aren’t just about budgets—they’re about beliefs, values, and long-term hopes.

Step 1: Choose the Right Moment

One of the biggest mistakes couples make? Bringing up money in the middle of a stressful situation—like after a big bill, an unexpected expense, or a disagreement.

Instead, schedule the conversation. Seriously.

Try saying:

“Can we set aside 30 minutes this weekend to go over our finances together? I’d love for us to be on the same page.”

Set yourselves up for success:

  • Pick a calm, neutral time (not when you’re tired or rushing out the door)
  • Leave distractions aside—phones off, TV off
  • Approach it as a shared task, not a confrontation

Step 2: Start With Shared Goals

Before diving into what’s not working, begin with what you both want.

Ask each other:

  • What are our top 3 financial priorities right now?
  • What would we love to achieve in the next 5 years?
  • How do we want to live in retirement?

When couples focus on shared goals—buying a home, funding school fees, building a travel fund—it becomes easier to work as a team. You’re not arguing about expenses; you’re planning a future together.

Bonus tip: Write your shared goals down. They’ll become the anchor for future money decisions.

Step 3: Talk About Money History (Without Judgement)

So many financial disagreements stem from different backgrounds. Maybe you grew up with parents who talked openly about money—and your partner didn’t. Or one of you was raised in a high-debt household, while the other had a strict “save everything” mindset.

These experiences shape how we deal with money as adults.

Ask each other:

  • What did your parents teach you about money?
  • How did you feel about money growing up?
  • What’s one financial habit you wish you could change?

This isn’t about fixing each other—it’s about understanding each other.

Step 4: Be Honest About Income and Spending

Now it’s time to get practical. Lay the numbers out:

  • Income (including bonuses or irregular payments)
  • Monthly expenses
  • Debts or liabilities
  • Savings and investments

It can be nerve-racking to admit things like overspending, debt, or lack of savings—but transparency builds trust. If you’ve been hiding something, this is your chance to come clean. If your partner opens up about something that surprises you, listen before reacting.

If you’re unsure how to begin, try saying:

“I’d like us to both know what’s coming in and going out. Would you be open to going through this together?”

Step 5: Decide on a System That Works for You Both

There’s no one-size-fits-all way to manage joint finances. Some couples combine everything. Others keep things mostly separate and split shared bills.

Fully Combined

All income goes into a joint account. Bills, spending, savings—everything is shared.

Good for: Couples with different incomes or spending habits who still want joint finances & planning.

Partially Combined

Each partner contributes to a joint account (usually proportionally based on income) for shared expenses, while keeping separate accounts for personal spending.

Good for: Couples with different incomes or spending habits who still want financial independence.

Fully Separate

Each partner handles their own money, and shared expenses are split down the middle or as agreed.

Good for: Newer couples, or those who prefer total independence.

Whichever you choose, make sure it’s discussed—not assumed. The goal isn’t fairness by maths—it’s fairness by agreement.

Step 6: Make It a Habit, Not a One-Off

The best way to avoid conflict? Make money talks regular and normal.

Try setting a “money date” once a month:

  • Review your budget or spending
  • Check in on goals (saving for a holiday? Paying off a credit card?)
  • Make decisions together (like increasing investment contributions)

Keep it short and positive—20–30 minutes over coffee or a glass of wine works wonders.

When to Get Help From a Professional

Sometimes, money issues run deep—or you just need a neutral third party to help you build a plan. This is especially true for:

  • Dual-country tax or financial planning
  • Retirement planning across jurisdictions
  • Managing different currencies or property in multiple countries
  • Major lifestyle changes (children, redundancy, relocation, repatriation)

A qualified wealth adviser can help you map out a financial strategy that feels good to both of you—while keeping things calm and constructive.

Money doesn’t have to be a source of tension—it can be a tool for connection. When you talk openly, plan together, and respect each other’s differences, you don’t just avoid arguments—you build a stronger, more resilient partnership.

And remember: you don’t need to agree on everything. You just need to agree on how you’ll disagree—with empathy, honesty, and a plan.

Want help getting on the same financial page as your partner? Let’s sit down together and turn “money talks” into a shared plan for your future.

School Fees, Relocation, and the Hidden Costs of Expat Life (and How to Plan for Them)

Posted on by
2

Being an expat often looks glamorous from the outside—high salaries, tropical brunches, and weekend trips to Phuket. But behind the scenes? It’s expensive. And not always in the ways you expect.

While most people prepare for the obvious costs—rent, transport, food—the hidden costs of expat life are what catch many families off guard. School fees, relocations, health insurance, and even the price of flying “home” can add up fast. If you don’t plan for them early, they can quietly erode your savings and leave you feeling financially stuck.

This guide is your financial reality check—and your toolkit—for managing the true cost of life abroad.

The Real Cost of International School Fees

International schools in Singapore offer world-class education—but they come at a serious price. Annual fees often range from SGD 25,000 to SGD 50,000 per child, depending on the school and year group. That doesn’t include:

  • Registration or enrolment fees
  • Uniforms, textbooks, and materials
  • School trips, technology fees, extracurriculars
  • Bus transport or meals

If you have more than one child—or plan to stay abroad long-term—these costs multiply quickly.

What to plan for:

  • Start saving early if you’re paying privately.
  • Consider a dedicated investment account or education savings plan.
  • Factor in inflation—school fees tend to rise 3–6% per year.
  • If your package includes school fees now, think ahead: What happens if your employer stops covering them?

The Price of Moving (and Moving Again)

Relocations aren’t cheap. Even if your company pays for the bulk of your move, you’ll still face:

  • Temporary accommodation and deposits
  • Storage costs
  • Visa and immigration expenses
  • School application fees
  • Admin setup (utilities, transport, mobile plans, furniture)
  • Travel costs for house-hunting or visa runs

And most expats move more than once. You may relocate within Singapore (e.g. upgrading to a bigger flat), or leave for another country down the line. Each move brings another wave of expense.

What to plan for:

  • Build a dedicated “mobility buffer” in your emergency fund (3–6 months of expenses, or more if you move frequently).
  • Keep your financial documents digitised and accessible from anywhere.
  • Maintain accounts or cards in more than one currency to ease transitions.

Hidden Career Costs (Especially for Partners)

For many expat families, one partner’s career takes priority—while the other may pause work, switch industries, or face employment restrictions. This leads to:

  • Lost income and pension contributions
  • Gaps in CVs
  • Limited access to professional networks
  • Increased financial pressure on the main earner

Over time, this has a knock-on effect on retirement savings and long-term financial independence, especially for women.

What to plan for:

  • Talk openly as a couple about joint financial goals and decision-making.
  • Consider building individual investment portfolios or savings accounts.
  • Factor in retraining or requalification costs if the non-working partner plans to return to work later.

Health Insurance Gaps

Singapore has excellent healthcare—but for expats, it’s not free. Without access to public subsidies, private insurance is essential—and expensive.

Many employers offer a basic medical plan, but it may not include:

  • Maternity coverage
  • Dental or optical
  • Pre-existing conditions
  • Mental health support
  • Dependents

And if you change jobs, lose coverage, or move countries, those gaps can become costly quickly.

What to plan for:

  • Review your insurance policy each year—not just for coverage, but also for portability.
  • Consider top-up or international policies for peace of mind.
  • Build a health emergency fund in addition to your main safety net.

The Cost of “Settling In”

Even if your relocation is covered, everyday life setup can be pricey:

  • Furniture and appliances
  • Car purchase or lease
  • School uniforms and supplies
  • Club memberships or activities
  • Replacing items left behind (like winter clothes)

Many expats underestimate this “soft landing” cost, which can run into thousands in just the first few months.

What to plan for:

  • Budget realistically—not just for the move, but for the first year.
  • Create a checklist of one-time vs recurring costs.
  • Don’t forget smaller items (like SIM cards, local bank fees, or childcare).

Home Leave and Family Travel

Visiting home is a must for most expats—but flights during holidays can be eye-wateringly expensive. Add in:

  • Accommodation (if you’re no longer a guest at your parents’ place!)
  • Travel insurance
  • Meals, gifts, and spending money
  • Pet boarding or travel costs
  • Missed workdays or unpaid leave

Multiply that by how many times a year you plan to go back—and then again for major life events like weddings, funerals, or emergencies.

What to plan for:

  • Start a “home leave” savings pot.
  • Book early to take advantage of flight deals.
  • Consider travel insurance that covers cancellations and health overseas.

Tuition for University Abroad

For many expat families, it’s not just school fees in Singapore—it’s also university abroad, often in the UK, Australia, Canada, or Europe.

Tuition fees for international students are significantly higher than for residents. And that’s before you add:

  • Accommodation
  • Flights
  • Visas
  • Health insurance
  • Living expenses

What to plan for:

  • Use long-term investments to grow your education fund.
  • Explore the pros and cons of keeping assets in your home country versus Singapore.
  • Plan well in advance—university costs can be forecast and planned for over 10+ years.

Putting It All Together: How to Plan for the Hidden Costs

To stay on top of these hidden costs, build your financial plan around three key pillars:

1. Short-Term Buffer (0–2 years)

  • Emergency fund
  • Moving and relocation
  • Health insurance gaps
  • Home leave

2. Mid-Term Goals (3–7 years)

  • School fees
  • Housing upgrades
  • Career transitions
  • Family support

3. Long-Term Wealth (7+ years)

  • Retirement
  • University tuition
  • Repatriation
  • Property purchases

Each pillar needs a mix of savings, investments, and insurance. And you’ll want to review regularly as your expat journey evolves.

Expat life is exciting, full of growth and adventure—but it’s not cheap. The most financially confident expats are the ones who expect the unexpected. They plan ahead for school fees, moving costs, and long-haul flights—not just the day-to-day expenses.

With the right plan, these costs don’t have to derail your goals—they just become part of the strategy.

Worried about school fees, moving again, or how to juggle it all financially? Let’s build a plan that makes your expat life sustainable, not stressful.