The Gen XY Lifestyle

Manulife: Singaporean retirement confidence at all-time low

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A Manulife survey on Singaporeans’ retirement saving priorities and attitudes polled 1,000 Singaporeans aged 21 to over 60, to uncover the status and sentiments of those about to retire versus those already in their golden years.

The survey found 72 percent of retired respondents regret not saving for retirement sooner and almost half of them wish they had invested in a retirement plan.

Singaporean retirees indicated that they’ve experienced a decline in their standard of living, with 1 in 4 having adopted lifestyle changes and consciously spending approximately SGD 1,500 less every month.

1 in 3 retirees continue to work post-retirement to increase their savings, and 1 in 2 indicated the need to supplement their Central Provident Fund (CPF) savings with other sources of income.

Based on their current savings, 1 in 4 retirees are not confident in living out the rest of their retirement in comfort.


Retirement confidence among pre-retirees at all-time low

Pre-retirees inching towards their dream retirement age are not confident in their prospects. The ideal age to retire was identified as 5 7 years old.

The survey found that the current average retirement savings among pre-retirees is SGD 423,000. When asked about the ideal savings needed to retire comfortably, most respondents indicated SGD 1.1 million, revealing an average savings gap of SGD 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 percent in this bracket believing they have enough to retire comfortably. Some reasons for having a later-than-desired start to saving include the high cost of living in Singapore (65 percent), insufficient income (49 percent) and unexpected expenses and expenditure (44 percent).


Retirement planning literacy is needed

Many younger Singaporeans shared through the survey that they have started planning for retirement at age 33, six years prior to the average retirement planning age of their predecessors; and approximately 80 percent of their savings are earmarked for retirement.

Despite the positive growing momentum in retirement planning, a worrying 1 in 4 of Singaporeans have not considered when they would retire, identical to the number of respondents who cited that they have not starting planning at all.

No matter what life stage you are at, it is never too late to start planning for your retirement. We all want to have a good quality of life in our golden years with the freedom and flexibility to spend on priorities and safeguard against unpredictabilities.

Dr. Khoo Kah Siang, Chief Executive Officer of Manulife Singapore

SmartRetire (II). Manulife’s response to the key findings in the survey.

Together with the sharing of this survey, Manulife launched SmartRetire (II). This is a whole-life, regular premium, investment-linked insurance plan that can be customised to the goals and budgets of policyholders across all life stages. It offers a curated suite of funds and premiums starting at SGD 200 per month, and provides withdrawal options for a lump sum or stream of income based on the policyholder’s lifestyle preferences and needs, from 40 to 70 years of age.