Many across Singapore are not prepared for retirement as 42% will plan for it within five years of retirement and 15% will not plan at all.
According to Sun Life Singapore, which surveyed 505 Singaporeans, 55% of today’s retirees’ biggest regrets include not saving enough and not investing wisely.
However, while most respondents save at least 10% of their income for retirement, there is 29% who do not save at all.
This comes as nearly one in four in Singapore will be over the age of 60 by 2050, according to Sun Life Asia.
Christopher Albrecht, chief executive officer at Sun Life Singapore, said: “As Singaporeans navigate a rapidly evolving retirement landscape, it’s clear that the shift towards personal financial responsibility is accelerating across all income levels. Our findings show that while securing financial independence is a priority for many, the majority still do not plan early enough. Early and strategic planning is crucial for everyone, not just to preserve wealth but to ensure long-term financial security, including the need to cater for future generations. Regardless of income, starting retirement planning earlier provides a stronger foundation for a comfortable and sustainable retirement.”
High income retirement in Singapore
Even high-income people had hurdles to overcome with retirement as 40% of them still leave retirement planning until five years prior while 11% will not plan at all.
Similarly, 15% of high-income respondents save less than 10% of their income for retirement, highlighting that even those with higher earnings may be underprepared.
Among high-income retirees, 15% were caught off guard by higher-than-expected costs, despite only 4% failing to plan for their retirement expenses. Their primary concerns were the rising cost of living (50%) and the need to support younger family members more than initially anticipated (50%).
In response, 75% of this group of high-income retirees liquidated long-term income-generating investments, while 63% have had to cut daily spending.
Regrets for high-income retirees were not investing wisely (100%), retiring too early (67%), not saving enough (33%), and not diversifying investments (33%).
Christopher Albrecht added: “High-income individuals often face unique challenges when it comes to retirement planning. Our research highlights that whilst wealth can provide a cushion, it doesn’t eliminate the need for careful planning. We’re here to help High Net Worth individuals not only grow and preserve their wealth, but also build a legacy, with our insurance solutions. From growing their wealth to ensuring that their assets are passed on to the next generation, early planning and strategic investment decisions are essential for safeguarding their financial future and the future of their loved ones.”
“Large part of Singapore unprepared for retirement despite wealth level” was originally created and published by Life Insurance International, a GlobalData owned brand.
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