Majority of them expect to finally lay back at 60.
The latest HSBC report found out that Singapore millennials expect to retire younger than other working age generations despite having the lowest retirement prospects of any generation.
According to the report, the majority of millennials expect to retire at 60 – two years less than the overall average of those surveyed. Only 16% of millennials expect to continue working after 65 – even as their generation faces unprecedented financial pressures and the state retirement age continues to rise around the world.
This is despite 64% of Singapore millennials acknowledging that they will live and need to support themselves for longer than previous generations.
The study revealed that Singapore millennials are seen as having the worst retirement prospects of any generation: having entered the workforce during subdued economic conditions, they will be required to financially support an increasing number of older non-working generations over the remainder of their working life.
Meanwhile, only 8% of those surveyed in Singapore think millennials are in the best position to have a comfortable retirement, while 45% see Baby Boomers as best placed.
Moreover, one in two believe Singapore millennials have experienced weaker economic growth than previous generations, while 44% agree that Singapore millennials are paying for the economic consequences of older generations, such as the global financial crisis and rising national debt.
In particular, Singapore’s rapidly aging population means that by 2024, the nation will join 33 others as a “super-aged” country, where one in five people are aged 65 or older. According to Population.SG, an online initiative by the National Population and Talent Division, it has taken Singapore only 19 years from Year 1998 to transition from an ageing to aged society. As such, the burden of supporting the economy will inevitably fall on Millennials.
However, the HSBC report found out that 61% of those surveyed in Singapore believe millennials enjoy a better quality of life than any previous generation, and 68% believe millennials will have more flexibility in retirement including the option to semi-retire allowing them to continue supporting themselves.
“Whilst Singapore millennials are broadly aware of the economic and demographic challenges they face, they do not appear to have grasped its full implications on their retirement. With low interest rates, rising healthcare costs and potentially declining social provisions for retirees in the future, it has never been more important to save for a comfortable retirement. Starting to save early – and saving enough – can reduce the need to continue working in later life,” HSBC Head of Retail Banking and Wealth Management Anurag Mathur said.
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