Manulife carried an article on retirement with the headline “2 in 3 Singaporean retirees regret not planning earlier for retirement”.
The article revealed the results of a survey conducted by Manulife on Singaporeans’ retirement saving priorities and attitudes has revealed that 72% of retired respondents regret not saving for retirement sooner, and almost half of them wish they had invested in a retirement plan.
The survey polled 1,000 Singaporeans aged 21 to over 60, across a spectrum of working adults, pre-retirees and retirees, to uncover the status and sentiments of those soon-to-retire, in comparison to those already in their retirement.
The survey revealed some startling findings:
Retirees
- Most retirees regret not saving earlier and not saving up more. Retiring around the average age of 59, 1 in 5 respondents are not satisfied with their retirement savings. Their average retirement savings is S$599,000.
- 2 in 3 retirees wish they had started planning financially for retirement at least eight years prior to when they began taking active steps, at around age 39.
- Survey participants indicated that they’ve experienced a decline in their standard of living, with 1 in 4 having adopted lifestyle changes and consciously spending approximately S$1,500 less every month.
- Half of the respondents regret not investing in a retirement insurance policy earlier on in life.
Pre-retirees
- While the ideal age for retirement was identified as 57 years old, pre-retirees reaching their ideal retirement age are not confident in their prospects.
- The current average retirement savings among pre-retirees is S$423,000. When asked about the ideal savings needed to retire comfortably, most respondents indicated S$1.1 million, revealing an average retirement savings gap of S$677,000.
- Close to 1 in 2 respondents aged 40 to 59 said they wish they had started financial planning much earlier, with only 38% in this bracket believing they have enough to retire comfortably. Reasons for having a later-than-desired start to saving include the high cost of living in Singapore (65%), insufficient income (49%) and unexpected expenses and expenditure (44%).
- With a current savings gap of over 60%, 37% of respondents believe that their standard of living will face an inevitable decline post-retirement. Almost 2 in 3 Singaporeans expect to continue working in retirement, though many are still hopeful about pursuing leisure activities in due time.
The survey shed light on Singaporeans’ tendency to procrastinate and start retirement planning late. This can be problematic because it’s not easy to build a lot of wealth within a short period of time. On the other hand if you start early, you can accumulate wealth over the years and let compound interest work in your favor.
If you want to start retirement planning but don’t know where to begin, contact us for professional consultation today.
