High-income S’poreans grapple with retirement planning amidst rising financial needs

High-income retirees were overwhelmed by the rising cost of living and family support expenses.

In Singapore, high-income individuals appear to be unprepared for retirement, with 15% saving less than 10% of their income, according to Sun Life Singapore.

Forty percent of high-income individuals leave retirement planning until five years or less before retirement, whilst 11% will not plan at all.

High-income workers expect to retire at 64, six years later than current high-income retirees, who retired at 58.

Despite only 4% failing to plan for their retirement expenses, 15% of high-income retirees were overwhelmed by higher-than-expected costs, citing the rising cost of living (50%) and the increased need to support younger family members (50%) as key factors contributing to their financial strain.

As a result, 75% of these individuals liquidated long-term income-generating investments, while 63% have had to cut daily spending.

Meanwhile, 19% of high-income non-retirees have actively postponed their retirement plans.

In addition, 6% express regret over past financial decisions, mainly citing not investing wisely (100%), retiring too early (67%), not saving enough (33%), and not diversifying investments (33%).

Sun Life Singapore surveyed 3,500 respondents across mainland China, Hong Kong SAR, Indonesia, Malaysia, the Philippines, Singapore, and Vietnam on their retirement plans.