Over 30% believe that they will have to downgrade their lifestyle.
Majority of older Singaporeans believe that they will be unable to pursue a comfortable retirement with their current savings and investments, according to the DBS-Manulife Retirement Wellness Study in Asia.
The study revealed that only 36% of Singaporeans aged 40-60 are confident that their current nest eggs are enough to make retirement comfortable, while 30% expect that they will have to downgrade their current lifestyle and habits when they retire.
Meanwhile, two in five respondents are not confident about their preparations for retirement, while among those who have started retirement planning, over half or 56% did not seek any form of advice.
Despite extensive healthcare subsidies, 38% are worried about their ability to afford medical costs when they retire, while 32% are unsure about how much to cater for healthcare in retirement.
“Singaporeans hold high expectations for their retirement years, but many are leaving it too late to make their hopes a reality,” said Richard Vargo, Regional Head of Bancassurance, DBS Bank.
The study included a Retirement Wellness Index which measured retirement preparedness among pre-retirees based on health, wealth and social aspects.
Singapore scored 46 out of 100 points on the index, compared to the regional average of 56 points. Across the three pillars, it scored lowest for the wealth aspect at 35 points, suggesting that Singapore pre-retirees feel less prepared for retirement financially as opposed to the health and social aspects of retirement, which had scores of 54 and 49 points respectively.
“The ‘DBS-Manulife Retirement Wellness Study’ provides an insightful look into the retirement attitudes and challenges faced by one of the most dynamic regions in the world. Retirement in Asia is a hot issue; populations are aging, workforces are shrinking, and many are underestimating the amount they need to lead the retirement lifestyle that they want,” Vargo said.
The study covered over 6,000 pre-retirees in six markets, namely Singapore, Hong Kong, China, India, Indonesia and Taiwan. In Singapore, a total of 1,008 Singaporeans and Permanent Residents (PRs), aged 40 to 60 years old, took part in the study.
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