In this article, I will compare the cost of living in Singapore against that in United States and Canada. This is to illustrate what the actual living costs are for these three countries, and the incomes that can be earned by mid-senior level and junior-mid level professionals. The scenarios below do not take into account any tax-deductible savings such as CPF, 401K or RRSP for the respective countries, in order to simplify the calculations.
Table #1: Salary and Cost of Living for Financial Controller (Mid-Senior)
Category | Singapore | San Francisco (USD) | Vancouver (Cdn) | |
|---|---|---|---|---|
Salary (Financial Controller) | $114,180 | $103,000 | $85,010 |
|
Income taxes | $9,085 (7.96%) | $33,822 (32.84%) | $19,283 (22.68%) | |
Net income | $105,095 | $69,178 | $68,727 | |
Housing (rent 900sf expensive area) | $5,137 x 12 = $61,644 | $4,275 x 12 = $51,300 | $2,378 x 12 = $28,536 | |
Car (Volkswagen Golf, assuming 0% interest for 10 years) | $16,657 ($166,569) | $2,641 ($26,416) | $2,169 ($21,691) | |
Available for discretionary or savings | $26,794 | $15,237 | $23,236 | |
Discretionary or savings in USD | $20,298 (1.32) | $15,237 (1) | $20,031 (1.16) |
Table #2: Salary and Cost of Living for Financial Accountant (Junior-Mid)
Category | Singapore | San Francisco (USD) | Vancouver (Cdn) | |
|---|---|---|---|---|
Salary (Financial Accountant) | $54,000 | $79,000 | $60,533 |
|
Income taxes | $2,090 (3.87%) | $23,649 (29.94%) | $11,739 (19.39%) | |
Net income | $51,910 | $55,351 | $48,794 | |
Housing (rent 900sf expensive area) | $5,137 x 12 = $61,644 | $4,275 x 12 = $51,300 | $2,378 x 12 = $28,536 | |
Car (Volkswagen Golf, assuming 0% interest for 10 years) | $16,657 ($166,569) | $2,641 ($26,416) | $2,169 ($21,691) | |
Available for discretionary or savings | -$26,391 | $1,410 | $8,089 | |
Discretionary or savings in USD | -$13,019 (1.32) | $1,410 (1) | $6,973 (1.16) |
What this exercise illustrates is that for mid-senior level professionals, there is money left over to enjoy life a little, but not necessary for savings. However, junior-mid level professionals in Singapore would need to cut back drastically on housing and transportation, and opt for less luxurious options. The corresponding junior-mid level professionals in San Francisco and Vancouver would also need to cut back, but not as severely.
Although scenarios for very senior professionals are not illustrated here, the very low income taxes in Singapore would work to the advantage of these professionals working there compared to San Francisco and Vancouver.
Summary
Junior-mid level: Vancouver > San Francisco > Singapore
Mid-senior level: Singapore = Vancouver > San Francisco
Very senior level: Singapore > Vancouver > San Francisco
Singapore is a good place to live and work for very senior professionals, while junior level professionals in Singapore do not fare too favourably due to the high cost of living in Singapore.
Sources:
http://www.wowjobs.ca/Salary.aspx?q1=Financial+Controller&l1=Vancouver&Si=checked
http://www.simplyhired.com/salaries-k-financial-controller-l-san-francisco-ca-jobs.html
http://www.salaryexplorer.com/salary-survey.php?loc=196&loctype=1&job=1011&jobtype=3
http://www.tax-brackets.org/californiataxtable
http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2014-Personal-Tax
http://www.guidemesingapore.com/taxation/topics/singapore-tax-calculator
http://www.expatistan.com/cost-of-living/comparison/singapore/vancouver?
http://www.expatistan.com/cost-of-living/comparison/san-francisco/vancouver?
National Slavery
*The author blogs at http://renounce-sg.blogspot.com