High-income workers delay retirement as 45% cite 'sandwich generation' strain

Eight in 10 expect to fund relatives even after leaving the workforce.

A majority of Singaporeans expect to continue working past retirement age, often out of financial necessity, according to Sun Life’s latest retirement survey.

The report, Retirement Reimagined: Asia’s Retirement Divide, found that 73% of Singapore respondents plan to keep working beyond retirement, with the figure rising to 80% amongst high-income earners.

Whilst some cite mental stimulation, social connections, and purpose as reasons, nearly half (48%) of high-income respondents say they need the income to maintain daily living and long-term security.

Many Singaporeans also face “sandwich generation” pressures, supporting both elderly relatives and young dependents. High-income respondents report downsizing lifestyles (23%) or postponing retirement (45%) due to these responsibilities. Eight in ten also expect to continue providing financial support in retirement.

“What we’re seeing is not a single retirement experience, but two very different realities. For those who are prepared, working longer can be a choice that offers flexibility and freedom,” said Christopher Albrecht, CEO of Sun Life Singapore. “For others, it reflects financial pressure. Planning early, and planning holistically, is what determines which path people are on.”

The survey showed that financial stability is crucial for a positive retirement outlook. Amongst high-income non-retirees looking forward to retirement, 50% cite financial security as a key factor.

Still, uncertainty over future expenses (49%) and inflation (42%) continues to create stress.

According to a report by Robert Walters, most sectors in Singapore are set for broad salary increases this year.

Employers in accounting and finance, supply chain and procurement, sales and marketing, and HR and business support are largely planning higher pay.

The survey also showed that 97 to 98% of companies in these sectors will raise salaries amid talent shortages and strong competition.

Overall, 69% of employers will give current staff at least a 3% raise in 2026, whilst 56% will offer new hires more than 6%. Job switchers can also expect increases of 5 to 15%, with top roles in AI and cybersecurity reaching up to 20%. Current employees can expect raises of 3 to 6%.

Planning remains short-term, with 22% of high-income respondents only plan within two years of retirement, and just 39% feel very confident in their plans, Sunlife said.

As part of Budget 2026, Singapore will extend the Senior Employment Credit (SEC) through 2027 to encourage employers to retain and hire senior workers, supporting later‑stage careers and multi‑generational workplaces.

A tripartite workgroup on senior employment has been formed to study age‑friendly job design and will issue recommendations later this year, reflecting government efforts to adapt the labour market to an aging workforce.

Health conditions are another key factor shaping retirement expectations. Respondents who reported positive changes in their outlook on retirement most often cited mental health (55%) or physical health (48%).

Conversely, poor health remains a major reason some people leave the workforce earlier than planned. Among those who retired ahead of schedule, 27% identified health issues as a leading cause.

Despite these challenges, there is strong agreement amongst respondents that retirement timing should remain a personal decision. Nearly all high-income participants (97%) said retirement should be based on individual choice rather than a mandatory age.

“Amidst rising costs of living, the role of insurance has become more critical than ever, allowing people to gain better control over their legacy and build a future where their retirement is shaped by possibility, not pressure," said Christopher. "Life insurance can provide the lifetime protection or liquidity that one needs for retirement and legacy planning.”

Moreover, the use of generative AI tools such as OpenAI’s ChatGPT and Google’s Gemini for financial decisions has more than doubled since the previous survey, rising from 15% to 34%.

At the same time, reliance on traditional sources of advice has declined. About 40% of respondents now consult banks and 42% seek independent financial advisors, down from 47% and 44%, respectively, in 2024.

“AI can be a helpful starting point, but it often lacks the nuance and personalisation needed for long-term financial security,” said Christopher. “As technology reshapes how people plan for retirement, expert advice remains essential to ensure decisions are informed, balanced, and aligned with individual goals.”