SINGAPORE: One in three working Singapore adults are not planning for their retirement, according to a survey by Nielsen on Monday (Feb 15).
Of this group, 40 per cent say they have not done so due to a lack of understanding of the available options. Another 25 per cent say they do not know how much is needed and when to start planning, according to the survey commissioned by NTUC Income.
On the other hand, one in three respondents aged between 25 and 59 who have not retired say they have started financial planning for their retirement, with 55 per cent of those aged between 25 and 35 years old saying they have started saving and planning actively for their future. Almost two-thirds - 64 per cent - believe that retirement investment is a way to ensure adequate savings for their future needs, according to the survey.
Of those in the 25 to 35 age group, 86 per cent are willing to set aside S$300 a month to accumulate S$1 million by the time they retire at 65, Nielsen found.
WHAT'S STOPPING YOUNGER SINGAPOREANS?
According to the survey, retirement planning among the young is impeded by short- and mid-term financial commitments, and a lack of knowledge about when and how to save.
Twenty per cent of the 25 to 35 year-olds in Singapore listed saving for a first property as their main financial priority, followed by providing money for their daily needs (14 per cent). Saving for retirement only becomes a priority for those more than 36 years of age, the survey found.
The survey found that retirees aged between 60 and 69 had saved only one-third of the funds they perceived to be sufficient for retirement.
Two-thirds of retirees - 66 per cent - said they wished they had started planning for retirement earlier, with 65 per cent indicating that they do not expect their savings to last throughout retirement. They also listed financial support from their family and children as the third most important source of income during retirement.
The study was conducted online last September among the non-retiree segment, and face-to-face among the retirees segment. It polled 554 Singapore citizens and Permanent Residents, of which 456 were non-retirees and 98 were retirees, according to NTUC Income.