• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Go to Expat Living Hong Kong
Get our Newsletter

Lifestyle Guide To Moving To & Living in Singapore - Expat Living HomepageLifestyle Guide To Moving To & Living in Singapore - Expat Living

Moving to Singapore and not sure where to start? Expat Living is the essential lifestyle guide to living in Singapore.

Login Pelcro Shop

Menu
  • Living in Singapore
      • Living here
      • Property
      • Neighbourhood Guides
      • Work & Finance
        • Costa Rhu: Jyoti’s spacious & central Tanjong Rhu condo
        • Shop dress shoes for men in SingaporeDress shoes for men – finding the perfect pair in Singapore
        • living in singapore demographics expat living reader surveyEXPAT LIVING READER SURVEY 2023
        • Forex trading for beginnersHow to start forex trading in Singapore
      • View all
    Close
  • Things To Do
      • Things to do
      • EL Events
      • Calendar
      • Competitions
      • Noticeboard
        • Image of cool things to do for kids in Singapore, watching white tiger in Singapore ZooWhat’s on this week and beyond
        • Sailing Yacht Charter in SingaporeLuxury yacht rentals in Singapore
        • Where to watch the F1 2023 and party!
        • One Rishta - a website for happiness and culture in Singapore from Rituparna senguptaA new way to access creativity and culture in Singapore!
      • View all
    Close
  • Kids
      • Enrichment
      • Kids Things To Do
      • Mums & Babies
      • Schools
      • Tots & Toddlers
      • Tweens & Teens
        • Centre Stage performing arts and drama classes in SingaporeTop ballet, dance and drama classes in Singapore
        • agora colearning inclusive learning environmentThis new preschool has a personalised learning environment
        • learning journey community SASMaking the student learning journey exciting
        • Yellow Aliens mascotWhere to rent costumes for Halloween in Singapore & more!
      • View all
    Close
  • Homes
      • Furniture & Décor
      • Real Homes
        • Looking for the best outdoor furniture?
        • Where to buy antiques or vintage furniture – Reviews
        • Modern interior design with a touch of tradition!
        • Singapore home decor by Originals7 best furniture stores for home décor in Singapore
      • View all
    Close
  • Travel
      • Australasia
      • Rest Of The World
        • Indonesia travel - where to stay in BaliIndonesia travel – Where to stay in Bali & island resorts
        • Sailing Yacht Charter in SingaporeLuxury yacht rentals in Singapore
        • Beach Villas Wakatobi Indonesian island resort6 Reasons to Book These Beach Villas!
        • The Latest Travel News & Hotel Deals
      • View all
    Close
  • Wine & Dine
      • Asian Cuisine
      • Western Cuisine
      • Bars & Clubs
      • Groceries & Speciality Services
      • Recipes & Classes
        • Oktoberfest 2023 singapore - the places for food and beerHow to celebrate Oktoberfest 2023 in Singapore
        • Deviate wine bar in Dempsey Hill - we chat to owner Joe Keats of Petersons WinesThis Dempsey bar is a best-kept secret!
        • Crossroads cafe at Orchard - where to eat in Orchard Road - alfresco dining SingaporeTry alfresco dining & happy hour at this café at Orchard Road
        • The best birthday cakes in Singapore
      • View all
    Close
  • Style & Beauty
      • Fashion
      • Hair & Beauty
        • Shop dress shoes for men in SingaporeDress shoes for men – finding the perfect pair in Singapore
        • Six shades full set Bigen Men Beard ColorDye your beard like an expert – at home!
        • Tiffany Cook and Caroline Chin Geyler from T&C Gemstones and JewelleryBespoke jewellery created by a pair of gem lovers!
        • Try the best Spas in Singapore for some pampering!
      • View all
    Close
  • Health & Fitness
      • Dental
      • Fitness
      • Medical
      • Wellness
        • allergic rhinitis, allergy medication and insuranceFast facts about allergies, their symptoms and insurance
        • art therapy depression treatmentNavigating depression with Experiential Therapy
        • The best personal trainers and personal training gyms in SingaporeWhere to go for personal trainers in Singapore
        • Sport clubs in SingaporeWant to join a sports team?
      • View all
    Close
  • Shop
    • PRINT MAGAZINE
    • DIGITAL MAGAZINE
    • Close

Will the inflation rate affect your financial future?

18th October 2022 by Rebecca Bisset 4 Min Read

https://expatliving.sg/singapore-inflation-rate-and-your-financial-future/

There’s a lot to keep in mind when it comes to making a plan for your financial future; how might your income and spending change over time, for example? What are the likely fluctuations in interest rates, or in the inflation rate in Singapore or wherever you currently live? Andrew Talbot from Avrio Wealth runs through some details for us.

Making plans and assumptions

Planning your financial future has a lot to do with looking ahead and making assumptions. These assumptions forecast what might happen in the future and enable you to plan so you can ensure you make the most of your money and achieve your financial objectives. Modelling of this kind shows your current position relative to your preferred position and goals by assessing your current and forecasted wealth. It provides a detailed picture of your assets including investments, debts, income and expenditure; these are then projected forward, year by year, using calculated rates of growth, income, wage increases, interest rates and the inflation rate in Singapore and elsewhere.

It’s important to select the correct assumptions, as small variations in the figures can greatly impact future planning. Consider the following key assumptions:

  1. The rate of return or interest rates you use for the growth of your investments.
  2. The rate of inflation in Singapore or the country you’ll be living in.

Understanding how inflation works and knowing the rate of inflation where you live is essential. It will help you understand how much you need to return to keep up your future buying power. For example, if you get a 5% increase in portfolio return, but inflation is 7%, you’re at a net loss of 2% in terms of real value.

The Singapore inflation rate has been higher in the discretionary goods and services that wealthier and middle-aged households spend a greater proportion of their income on — items such as cars, furniture, hotel stays and recreation.

inflation rate in singapore avrio wealthWatching your personal inflation rate

Your own personal inflation rate is something to watch and is a valuable metric. While inflation indexes use standard data for each country, they encompass a lot of price points you may not buy. Your own personal inflation index, on the other hand, may include items that have increased substantially and that may not be recorded in (or may have a more minor component of) the general index.

Looking at your index when it comes to planning is important. It lets you know the required rate of return a portfolio of assets needs to achieve. Your expenses will be different to a general consumer index such as the CPI (Consumer Price Index); if you have children located around the world, for instance, the cost of travel, flights, hotels and the like will have an impact on your assumptions. The current increases in school fees do generally outstrip the inflation index, for example. The cost of private health care also tends to be higher than standard indexes.

Without acknowledging inflation and the real buying power of your income, you may slowly fall behind on your financial goals. However, by building out a solid financial strategy, understanding your current index, and calculating how much money you actually need to pursue your long-term goals, you’ll be better positioned to achieve your life’s objectives.

Retirement spending also requires your personal index to be accurate – you don’t want to run out of money. Your expenses need to generate income from the assets to produce income for your expenses.

Thinking specifically and realistically

With every financial corner you turn, it’s important to run through the numbers; this will help you make the right financial decisions. It’s also important to be specific. For example, it’s not enough to say, “I want to have enough to retire comfortably.” It would be best if you thought realistically about how much you’ll need. The more specific you are, the easier it will be to come up with a plan to achieve your goals.

Avrio Wealth builds financial plans for their clients, and will discuss inflation rates that might affect you as part of your assumptions.

Set up an online consultation to see if Avrio may work out a long-term solution for you.

Brought to you by Avrio Wealth Pte Ltd
9 Battery Road, #28-01
6240 6865 | avriowealth.com

This material is intended for educational and informational purposes only. It is not intended to provide specific advice or recommendations for any individual. Additionally, you should consult with your Financial Advisor, Tax Advisor, or Attorney on your specific situation.  The views expressed in the material are that of the author and do not necessarily reflect those of any market, regulatory body, State or Federal Agency, or Association.  All efforts have been made to report or share true and accurate information.  However, the information may become materially outdated or otherwise rendered incorrect due to subsequent new research or other changes, without notice. The author nor the firm are able to always verify the content from third party sources. For additional information about the firm, please visit the MAS Website at https://www.mas.gov.sg/  and the SEC Website at www.adviserinfo.sec.gov. For a copy of the firm’s ADV Part 2 Brochure, please contact us at info@avriowealth.com 

Found this interesting? Read on for tips on retirement planning.

Moving to Singapore or already living here, this neighbourhood guide is a good overview of where to live.

Categories: Living in Singapore Work & Finance Tags: avrio wealth Inflation

Rebecca Bisset

Heading up Expat Living, Rebecca started off in photography and video. A bit of a nomad before Singapore, she likes to travel when she can but she finds looking at properties as exciting!

You May Also Like

Female foreign domestic helper holding Lucy debit prepaid Mastercard

Easy mobile banking for the multi-tasking woman

tax efficient investments for united states taxpayers

For United States taxpayers only!

Primary Sidebar

  • Competitions
  • Noticeboard
  • Subscribe
  • About
  • advertise
  • Contact
  • Privacy

© 2023 Expat Living Singapore, All Rights Reserved.