Almost half in Singapore expect family to care for them in retirement: survey

Read? Almost half in Singapore expect family to care for them in retirement: survey


A SURVEY of just over 1,000 Singaporeans found that nearly half (46 per cent) expect their family to care for them in retirement.

Nearly half (48 per cent) believe they would not be able to save enough to sustain their lifestyle in retirement. And, over half (57 per cent) say retirement planning is a source of stress.

The survey by St James Place Wealth Management Asia (SJP Asia) highlights the challenges and inadequacy of retirement planning, even among younger people.

The survey interviewed over 2,000 respondents in Singapore and Hong Kong in February and March. Only those between the ages of 25-54, who held personal investments in stocks, property, shares or funds were interviewed.


The respondents had annual income of between S$70,000 and over S$250,000.

More than one in eight (13 per cent) expect to work past retirement age due to a lack of savings and two-thirds (66 per cent) were concerned about being a financial burden to those closest to them.

The firm said the survey underscores the need for financial planning as people age, and particularly for millennials, whose generation may well be the first to earn less than their parents.

More than half (56 per cent) of those who believed they would not have saved enough for retirement were between the ages of 25 and 40.

SJP Singapore chief executive Gary Harvey said: "Our findings show that there are many prevailing expectations for Singaporeans in retiring, and that their retirement finances may generally only flow in one direction. Amid declining birth rates and an ageing population, there may be more difficult choices for families ahead."

More than two in five (42 per cent) were unaware of how much income they would need in retirement. The median expectation was between around S$3,500 and S$5,000 a month, and over half believe they would need more than S$5,000.

Many are prepared to make sacrifices to accommodate their retirement plans, including spending less on lifestyle services and travel, downsizing their home and reducing spending on family members.

Around a third (32 per cent) say they plan to retire outside Singapore; Malaysia, Australia and Thailand were the most popular destinations.

While the majority (84 per cent) have life insurance, only 38 per cent have made a will. The majority (72 per cent) of those who do not have life insurance are under 40.

Mr Harvey said: "One of the greatest assets that the younger generation has on its side when either investing or saving for the future is time."

However, as Covid-19 has demonstrated, potential crises are never far away. "It is important that people prepare for the unexpected and adopt good habits in starting financial planning early. By doing this, they can help to mitigate the impact of short-term financial headwinds and reap the full benefits over time."