Daniel Lim, 38, earns $9,500 a month as a product manager, and his wife Hui Min, 36, earns $6,000 as a teacher. After employee CPF the couple take home $12,700 a month, spend $6,000 and hold $1,150,000 invested outside CPF. They want to stop work when Daniel turns 45, and a colleague tells him the target is 25 times annual spending.
The financial independence, retire early (FIRE) number is annual spending divided by a safe withdrawal rate. The usual 4% rate equals 25 times spending and was measured over 30-year retirements.
The couple spend $6,000 × 12 = $72,000 a year, so 25 times is $1,800,000. A plan from 45 to 90 runs 45 years and needs about $2,000,000. The sections below follow how Daniel sets the target.
How Is A FIRE Number Worked Out?
The withdrawal rate is the share of the starting sum a retiree can take in the first year, then raise with inflation each year, without running out before the plan ends. According to the Department of Statistics (SingStat), resident households spent an average of $5,931 a month in the Household Expenditure Survey 2023 (checked 28 September 2026). That is $5,931 × 12 = $71,172 a year, and at 4% the FIRE number is $71,172 ÷ 4% = $1,779,300.
How Long Does His Retirement Have To Last?
A household that stops at 60 and plans to 90 funds 30 years, which is the case the 25x rule was measured on. According to the CPF Board, CPF LIFE pays for as long as the member lives (checked 28 September 2026). A plan that stops at 85 leaves the last years unfunded, so Daniel plans from 45 to 90.
What Withdrawal Rate Fits 45 Years?
A retirement of 60 years has to last through more bad years than one of 30, so each year takes a smaller share. A 10-year retirement can spend capital, so its rate is higher.
The rates below are estimates. They treat 4% as the rate for 30 years and scale it by the length of retirement, from twice the rate at 10 years to 0.85 times at 60 years. No published study gives this scale.
| Years in retirement | Withdrawal rate | Multiple of spending | FIRE number at $71,172 a year |
|---|---|---|---|
| 10 | 8% | 12.5x | $889,650 |
| 15 | 6% | 16.7x | $1,186,200 |
| 20 | 5% | 20x | $1,423,440 |
| 30 | 4% | 25x | $1,779,300 |
| 40 | 3.7% | 27x | $1,923,568 |
| 50 | 3.5% | 28.6x | $2,033,486 |
| 60 | 3.4% | 29.4x | $2,093,294 |
Source: SingStat Household Expenditure Survey 2023; withdrawal rates scaled from 4% at 30 years
Daniel's 45 years sit between the 40-year and 50-year rows, at an estimated 3.6%. His FIRE number is $72,000 ÷ 3.6% = $2,000,000, or about 27.8 times spending. Going from 30 years to 60 adds only about 4.4 times spending, because investment returns pay most of the extra years.
Read Also: Can You Retire Before 55 In Singapore?
How Does CPF Change His Target?
CPF savings count towards the sum but arrive in stages. From 55, members can withdraw at least $5,000, plus savings above their Full Retirement Sum, and the Retirement Account pays CPF LIFE from 65. MediSave only pays for healthcare.
Daniel stops 10 years before 55, so 10 × $72,000 = $720,000 has to come from savings outside CPF. After 65, CPF LIFE covers part of the couple's spending and lowers the draw on the invested sum.
Read Also: CPF LIFE Payouts In 2026: How Much Each Plan Pays
What Else Moves The Figure?
Three other inputs change the FIRE number:
- Annual spending. Every $1,000 a year of spending adds $25,000 to a 30-year FIRE number and about $28,600 to a 50-year one.
- Income after stopping. Part-time work, rent or CPF LIFE reduce the draw on the invested sum.
- Tax on withdrawals. Withdrawals from the Supplementary Retirement Scheme (SRS) are partly taxable, so a sum held in SRS has to be larger to pay the same spending.
Read Also: Find Your Own Sustainable Stopping Age In Cashmere Pocket
Which FIRE Number Fits Which Household?
Daniel and Hui Min set their target at $2,000,000. They invest $6,700 × 12 = $80,400 a year, so contributions alone take them from $1,150,000 to $1,712,800 by 45, and investment returns have to make up the remaining $287,200. The extra $200,000 above 25 times is about 2.5 years of their saving, so they review the stopping date each year.
The 25x rule suits a household that stops at about 60. A household that stops in its 40s should plan on about 27 to 29 times spending and check that its money outside CPF lasts until 55. A short retirement or large income after stopping may need less than 25 times, and the right multiple depends on each household's circumstances.