Retirement seems to be the ‘light at the end of the tunnel’ for those in the workforce, but do Singaporeans have enough to retire? We find out what Singaporeans are doing to meet those retirement goals.
Watch more: https://www.asiaone.com/video
Watch more: https://www.asiaone.com/video
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LifestyleTranscript
00:00No, I barely save money.
00:01I mean, currently right now, I'm saving money for my wedding.
00:04Budget is tight, but we'll see who needs it first.
00:08It's quite a challenge nowadays to give a priority of what you need to save.
00:13The current retirement age in Singapore is 63,
00:16and on July 1, 2026, it's set to be raised to 64
00:19and the age of re-employment to 69.
00:22Though the amount of savings required to retire
00:24largely depends on what kind of lifestyle you want to lead,
00:27building a comfortable retirement sum
00:29should start as early as possible,
00:31with Singapore's Central Provident Fund helping
00:33by requiring employed Singaporeans to contribute
00:35a portion of their wage based on their age.
00:38Budget 2024 also saw enhancements made to the Silver Support Scheme
00:42as well as the Matched Retirement Savings Scheme
00:45to enable more Singaporeans to meet their retirement needs.
00:48But is that enough?
00:50We wanted to find out what Singaporeans take into consideration
00:53when planning for their retirement.
00:55Asia One recently did a survey on people's perceptions towards retirement,
00:59which received 1,092 responses.
01:02A fully paid-up house and a fully paid-up health insurance
01:05were the top two retirement must-haves,
01:07with being able to go on an overseas trip at least once a year coming in third.
01:11Fewer than 3 in 10 respondents aged 35 and above
01:14said that they were on track to reach their retirement goals.
01:17Among older respondents, fewer than 1 in 4 respondents aged 55 and above
01:22were on track as well,
01:23with only 39% of retirees stating that they have enough funds to retire.
01:28Around 10% of respondents 35 and above have yet to start planning for retirement.
01:33The most common reason for not starting
01:34was that they were already finding it difficult to make ends meet.
01:38Being afraid it would make them stressed and anxious,
01:40as well as not knowing where or how to start,
01:43were the two other common reasons why respondents
01:45have not started planning for their retirement yet.
01:48For respondents who have clear retirement goals
01:50but have not yet reached these goals,
01:52the rising cost of living,
01:54making enough from investments,
01:55as well as covering daily household expenses,
01:58were seen as the most common challenges to achieve their retirement goals.
02:02Of the respondents who replied that they don't know or don't care
02:05about their retirement planning journey,
02:07making ends meet,
02:08keeping myself healthy and well,
02:10and taking care of my family were the most stated key priorities.
02:14To expand on our findings,
02:15we headed out to find out what Singaporeans consider to be
02:18must-haves for retirement.
02:20I want an easy life.
02:22I don't need to worry about anything,
02:24like, for example, paying for stuff.
02:26Basically, just enjoy social life with friends or with my family.
02:30I think I should have enough savings in the CPF account.
02:35A very steady passive income when I reach my retirement age.
02:42I think for me, like a house,
02:45so that my children and probably their grandchildren
02:49can live in it for the time being.
02:51I think most important is plenty of savings.
02:54Must-haves for retirement need to be financially independent.
02:58You need to achieve FIRE.
02:59Same. I want to have my house paid off already.
03:02I think for me, it's like, as long as I have a house,
03:04then no liabilities, no debt, nothing to pay off.
03:08There's no liabilities and having a healthy and happy family.
03:13$5,000 recurring income.
03:15I wouldn't have to worry about if I have the next money from CPF and all that.
03:21So, something to keep in mind.
03:23Just so that I can spend for kids,
03:27making sure that they have allowance and all that.
03:30No, I barely save money.
03:31I mean, currently right now, I'm saving money for my wedding.
03:36I just hope for my CPF to cover for me.
03:40If I keep working, then my CPF will build up.
03:41Generally, no, I have not started planning for retirement
03:44because I wouldn't say I'm young,
03:46but it will still need time for me to plan for really the future.
03:50Yes, I did.
03:51When I was very young, I saved $500 a month.
03:57Semi, semi-planning.
04:00Yeah, because now there are some other priorities.
04:03The planning would either be for children's education,
04:07or if they are smart enough, they have scholarship,
04:10then they don't need the money, then it will be for my retirement.
04:14I mean, budget is tight, but we'll see who needs it first.
04:19I did save a bit.
04:20I've started planning financially,
04:23so I have my own financial advisor to help me save every single month.
04:28I'm quite young to start financial planning,
04:32but I'm very worried about how to afford a HDB house.
04:36So, it's something that I'm planning towards together with retirement as well.
04:42No, not yet.
04:44Haven't also.
04:45Not really, but I feel like it's a bit too far off.
04:49But I've thought about it, but I haven't really started it.
04:52For me, it's no, because I'm currently saving for a house.
04:56Singapore is very expensive.
04:57If you work an average or above average job,
05:00then you can pay for whatever that you need,
05:04for house, for your expenses.
05:06Focusing on studying, pay off my tuition fees and stuff.
05:11I think the difficult part of saving is inflation,
05:14and the cost of living goes up, food also goes up, everything goes up.
05:19It's quite a challenge nowadays to give a priority of what you need to save.
05:24Of the people we interviewed, the majority of them said
05:27that having sufficient savings is a must-have in retirement,
05:30with the fully paid-up house coming in second.
05:32Six out of ten respondents have yet to start planning for retirement,
05:36with some choosing to rely on the CPF instead for now,
05:39as the cost of living in Singapore is too high.
05:42Of these six respondents, other reasons they listed were
05:45that they were saving for a larger expense, like a house or a wedding,
05:48paying off their tuition fees,
05:50or that retirement was simply too far away to start planning for.
05:54So, what do you think?