Less than 2 in 10 Singaporeans are ready to retire financially: Nielsen
47% of Singaporeans are uncertain about their financial capability to retire.
According to the Global Aging Report by The Nielsen Company, only 14% are financially ready for retirement and this is a lower percentage compared to the Asia Pacific (22%) and global (18%) averages. 35% of Singaporeans plan to retire/were already retired before they reach 60 years of age.
Consumers in Thailand (68%) topped the list of countries in Asia Pacific with respect to being financially prepared for retirement, followed by India (31%) and China (24%). Japan and Korea are both at 10%, being the least financially prepared for retirement.
“Although it seems that the majority of Singapore consumers hope to retire before 60 years of age, most of them may not be able to do so comfortably. With the rising costs associated with inflation, some are also unsure about their financial readiness to retire,” said Joan Koh, Managing Director, Singapore, The Nielsen Company. “Singaporeans may need to stay longer in the workforce as their life expectancy increases. In order to retire early before the age of 60, the will be looking to build theirnest eggs by exploring alternative sources of income, investment strategies, or cut back on buying non-essential and luxury items.”
The primary sources of retirement income varied across regions. While 43% of European consumers said they relied on government-run plans, 31% of North Americans surveyed will rely on personal savings. Within the Asia Pacific region, 51% of consumers will fund their retirement with personal savings, with government-run plans and company retirement plans each accounting for 21% of responses. In Singapore, 82% said personal savings would be their primary source of retirement income.
As for post-retirement activities, Singapore consumers favored travel (73%), followed by volunteer work (51%) and joining a club and participating in its activities (49%). There was low interest to move into a social center for better social life (10%). In Asia Pacific, 66% chose travel as the top post-retirement activity, followed by joining a club and participating in its activities (46%) and taking care of grandkids (35%).
Koh explained, “Singapore consumers are avid travelers and enjoy expanding their horizons. The increase in the number of budget airlines in the region has made traveling to other countries much more convenient and affordable. This could mean significant opportunities in the travel-related industry for this segment of consumers.”