Singapore is among the most expensive countries you can choose to live.
Recent data suggests the cost of living in Singapore is around 32.7% higher than in the UK.
While an internet search will uncover a range of average facts and figures, this article reveals the real-life budget of one of the Partners at Ascenta Wealth, who splits his time between Singapore and the UK.
When our Partner shared a breakdown of his family’s living expenses in the UK, it sparked several interesting conversations. In particular, how his UK budget compares with the cost of living in Singapore.
As always, there are lots of variables. Here he shares his experience and ballpark figures based on his own experience and what we see regularly when working with expat families. (All figures are based on a family of four.)
What does it really cost to live well in Singapore as an expat family?
If you’re putting two children through international school and living in a good four-bed condo on the East Coast (and making the absolute most of expat living), you might be looking at around S$30,000 a month, after tax.
This excludes monthly savings or investment contributions – crucially, it also excludes travel costs.
If you’re anything like our Partner, holidays can be a significant (and often underestimated) part of the budget.
As such, we typically suggest you look at what you spent on travel over the past 12 months and factor it in as a monthly cost. Take a deep breath – the results may prove eye-opening (or even eye-watering)!
Of course, S$30,000 a month after tax might be way off the mark for some, but for many families, the cost of living in Singapore can be high – particularly when you have kids.
That said, you may choose to view it as the cost of entry for a fantastic lifestyle.
While it’s important to enjoy life in the here and now – particularly when you’re an expat – we often see clients who’ve seen their spending creep up to a point where it no longer reflects real value or joy.
Over time, big-ticket expenses can start to feel like necessities – even when they no longer add meaning or improve the quality of your life.
It’s easy to absorb this when you're on a high income, but it’s worth remembering that life has a habit of throwing curveballs. As such, it’s not always wise to take that income (or your savings capacity) for granted.
How much does it really cost to live comfortably in the UK these days?
Every time our Partner visits clients in Singapore, he’s asked about the cost of living in the UK. And the conversation is popping up more and more.
Having spent more time in the UK over the last three years, he and his wife have a pretty good handle on their budget. So, he’s well positioned to share his family’s monthly expenses, and provide some clarity to those considering returning to live in the UK.
- The headline number: £7,200/month
- £2,900 of that is mortgage repayments
- The remaining £4,300 covers day-to-day living.
While the family don’t feel like they’re living extravagantly, our Partner admits that he’s developed a bit of an M&S habit. While he occasionally considers the idea of cleaning his own windows (and saving £2,184 a year), he probably spends double that on padel these days (though the spreadsheet begs to differ!).
Fair to say, he’s not losing sleep over his decisions!
3 key things that influence the headline figure:
- He lives in Harrogate (not cheap, but far more manageable than London)
- They have access to excellent state schools, which avoids the cost of private education
- He and his wife have two children, and no pets (yet).
Again, holidays and monthly investment/savings contributions are both major expenses not included in the monthly figure.
Everyone’s numbers will be different. Your mortgage, household size, and postcode all make a big difference – but hopefully this provides a useful benchmark to work from.
UK v SG: Which gives you more capacity to save?
Having looked at the cost of living in both Singapore and the UK, how does it all add up when it comes to your ability to save?
As ever, there are lots of variables at play, but a high-earning professional couple with two children might end up not really seeing much difference in the amount they’re able to save between the UK and Singapore.
While it’s true that you pay a lot more tax in the UK , living costs can be much more manageable – especially if you settle outside the M25.
And, of course, you’ll need to address the all-important question: Could you command the same salary back in the UK?
If you’re in banking or tech, that may be more likely. However, we’ve seen plenty of clients who have taken a pay cut when they move back to the UK, especially if changing roles or sectors.
Whether or not you’re considering a move, if you'd like to explore a more tailored, in-depth analysis of your current budget or potential future budget, including the long-term retirement implications, we’d be delighted to hear from you.
