One in four young seniors do not have a ‘robust retirement plan’: study
Research on Successful Ageing (ROSA) said only 27% have a “robust retirement plan.”
Most young seniors, aged in their 50s and early 60s, were somewhat engaged in some form of retirement planning but a few still have no retirement plan.
According to ROSA’s study, 27.83% of young seniors do not have a retirement plan, with the remaining 50% having a retirement plan.
Meanwhile, when asked about preparedness for retirement, 38% reported fair whilst 34% reported that their readiness was good.
Eight in 10 of the young seniors said they agree or slightly agree that they have sufficient knowledge about how to conduct their retirement plans.
However, one in four said they slightly disagree or disagree that their retirement savings are on track and over 36% of participants felt that they slightly disagree or disagree that they have enough endowment plans needed for retirement.
The study used survey data collected in July 2023, where a total of 6,430 respondents fell within the inclusion criteria of ages between 53 and 78.
The rising inflation, cost of living, and longer life expectancy can create retirement woes and the Majulah Package, which was released in 2023, offers an initiative that targets retirement adequacy for Singaporeans aged 50 and above, particularly those with lower and middle incomes.
The aim is to encourage young seniors to continue working to be self-sufficient in their retirement needs.
“The Majulah Package is designed to assist low and middle-income individuals through means-tested criteria based on income, residence value, and savings,” read the report.
Changing the meaning of work and retirement
The study suggests that policymakers and researchers need to consider the changing meaning of work and retirement and consider broader psycho-social implications.
ROSA also encourages the need to move away from traditional legacy insurance and educate this group about more up-to-date wealth management strategies.
Both qualitative and quantitative research can be conducted to gain deeper insights into the themes highlighted above and the potential to engage each generation based on their unique needs.