6 of 10 Singaporean retirees regret not having a retirement plan
Those who have no retirement plan were barely meeting their basic monthly expenses.
Singaporean retirees who did not plan for their retirement and depended on a monthly retirement income (mainly from past savings, CPF payouts, and family members’ allowances) of S$1,200, were barely meeting their basic monthly expenses and were left with only S$30 extra each month.
This means that they could be barely living with a dollar a day and would not be able to meet unexpected or additional expenses, such as medical costs should they fall ill, according to a survey by insurer group Great Eastern.
Great Eastern also found out that over 60% of those surveyed regretted how they planned their retirement in hindsight, whereas 45% of them shared that not planning earlier was a key regret.
Most of the respondents said they wished they had 60% more money to spend on a monthly basis.
Planning early and seeking professional help
The survey also showed that the earlier you plan the better. Those who started planning before age 50 were in a stronger financial position with an average of S$625 extra to spend monthly for any unplanned expenses. This is 20 times more as compared to those who did not plan for their retirement.
In contrast, retirees who planned after age 50 had S$300 extra to spend.
Meanwhile, retirees who had planned with professional advice had on average $605 extra to spend as they wished. This was more than twice that of retirees who had planned for retirement without professional advice (S$330).
“With longer life expectancy and the rising cost of living in Singapore, proactive retirement planning and starting early is more important than ever. Whilst retirement planning might be a distant concern for many of us, the many uncertainties in recent times impacting people’s job security is a reality. We encourage people to get started early, no matter how small, so that they can have the freedom to make their own decisions to lead their desired retirement lifestyle with the help of professional advice,” Colin Chan, managing director for Group Marketing, Great Eastern said.
To encourage people to become financially independent and be empowered to make their financial decisions even after retirement, Great Eastern has launched the “Don’t Lose the Freedom to Make Your Own Choices” campaign. This campaign reiterates the importance of leading our desired retirement lifestyles through forward retirement planning with Great Eastern’s financial storyboard tool. The campaign will be shared on various digital platforms.