HOW much do you need to retire on? Prudential's new campaign will give individuals an answer that it hopes will spur them to take action on retirement planning. Its campaign "What's your number?" works out the expenses that are expected to occur on five retirement lifestyle expectations.

Its model comes up with a lump sum savings goal, assuming a 20-year drawdown period in retirement. There are also assumptions made on inflation and a rate of return.

Prudential chief executive Philip Seah (right) said: "We believe Singaporeans know retirement planning is important. But I think what is important is to answer two questions - how are we to go about planning? And what is the amount we need to retire with?"

Prudential's five retirement lifestyles are based on data from the Department of Statistics' Household Expenditure Survey 2003. The figures are updated for inflation based on the inflation rates between 2003 and 2007. The inflation rate used is 1.5 per cent, which some advisers may believe is too low. The assumed nominal investment return while in retirement is 5 per cent.

On medical costs, the model makes an assumption of insurance premium payments. There are no housing costs imputed, as these are assumed to have been paid off by retirement.

Individuals will be able to access a website (www.whatsyournumber.com.sg) to work out their own expected lifestyles; there will also be calculators to reflect how much monthly savings will be needed to reach the goal, assuming a specific rate of return.

The most modest lifestyle - 'Budget' - assumes a household expenditure every month of $1,040 for 20 years. This works out to a targeted savings pot of $195,000.

For a 'Modest' expected lifestyle, the expenditure per month is projected at $2,345. For this you will need to build up savings of $450,000.

The most luxurious assumption is the 'Comfortable' lifestyle, which projects a monthly expense of $5,170. For this you will need savings of $1,013,000.

While the dedicated whatsyournumber.com.sg website may not generate direct leads for Prudential, the effort is part of a $2.5 million publicity campaign that will involve the mass media and other outlets. The campaign has been launched as well in South Korea, Hong Kong, Taiwan and, more recently, Malaysia.

Awareness of retirement issues is rising, thanks in part to recent publicity over the changes in the CPF. The government will be paying higher interest rates on a portion of CPF savings, and will also make the take-up of longevity insurance or an annuity compulsory.

A regional survey by AXA recently found that Singaporeans were the least optimistic about the future due to concern over their careers and retirement. Ironically, they were found to be the most prepared for retirement, as about 59 per cent have either begun to plan seriously or intend to start planning. The survey also found that Singaporeans were not willing to sacrifice their current living standards for early retirement.

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