Financial and planning gaps leave Singaporeans unprepared for retirement: report
Nearly half of Singaporeans start retirement planning too late.
Whilst saving for retirement is a top financial goal for Singaporeans over the next 12 months, 42% will begin planning five years or less before retirement, and 15% will not plan at all, Sun Life Singapore reported.
The report also found that, despite most Singaporeans saving at least 10% of their income for retirement, 29% do not save at all.
Singaporeans fund 32% of their retirement income from cash savings and do not maximise returns through investments that keep pace with inflation.
Younger generations who are currently working also aim to retire at 64, five years later than the current average of 59.
In addition, 18% of non-retirees have postponed retirement, compared to 11% of retirees, citing the need to save more (60%), cover living expenses (56%), and manage healthcare costs (37%) as the main reasons.
The cost of living (64%) and healthcare expenses (43%) are the main challenges for those unprepared, with many retirees cutting spending (57%) and liquidating income-generating investments (50%).
Meanwhile, 14% of retirees regret past financial decisions, mainly citing not saving enough (55%), not investing wisely (55%), and retiring too early (45%).
Sun Life Singapore surveyed 3,500 respondents across mainland China, Hong Kong SAR, Indonesia, Malaysia, the Philippines, Singapore, and Vietnam on their retirement plans.