High-income Singaporeans delay retirement as costs and caregiving bite

Amongst this group 45% postponed retirement and 23% cut lifestyle expectations.

Singaporean elders expect to remain in the workforce beyond traditional retirement age, as many stated feeling unprepared for the future.

A new study from Sun Life Singapore, Retirement Reimagined: Asia’s Retirement Divide, revealed that 73% of all respondents and 80% of high-income individuals plan to work past retirement. 

For the high-income bracket, the motivations are split; whilst 62% value mental stimulation and 52% seek social connection, 48% admit they need the extra income for daily living and long-term security.

Cost pressures are a primary obstacle, with 49% of high-income respondents worried about future expenses and 42% citing inflation as a major concern. 

Planning horizons also remain short, as 22% of high-income individuals only start retirement planning within two years of leaving full-time work. 

Consequently, only 39% of this group feel very confident in their current retirement strategies.

Financial strain is further exacerbated by family obligations. 

Many Singaporeans face the dual pressure of supporting elderly parents and young children simultaneously. 

Amongst high-income respondents, 45% have postponed retirement, and 23% have downsized their lifestyle expectations due to these caregiving roles. 

Furthermore, 80% expect to continue providing financial support to children or relatives even after they retire.

The survey highlights a strong correlation between health and retirement optimism. 

Those with positive outlooks frequently attribute their perspective to better-than-expected mental health (55%) or physical health (48%). 

Conversely, 27% of those who retired earlier than planned did so because of poor health. 

There is also a near-unanimous shift in mindset regarding retirement age, with 97% of high-income respondents stating that retirement should be a personal choice rather than a mandatory age.

A notable trend in the report is the doubling of Generative AI use for financial decision-making, which rose from 15% to 34% over the past year. 

This shift comes as reliance on traditional advice declines. Specifically, consultation with banks dropped from 47% to 40% since 2024, whilst use of independent financial advisors fell from 44% to 42%.