Only 35% of Singaporeans have retirement plans

Rising costs of goods and services remain to be the main reason for investing in insurance.

Manulife Asia Care Survey 2023 results showed that about two-thirds of Singapore locals perceive retirement saving as their main priority.

With the expectation to retire at 62 years old, Singaporeans aim to immediately start generating sufficient retirement savings.

“But it’s a worry that so few have a retirement plan. Retirement planning must start early so that you have a longer runway to grow your retirement funds. While there are many urgencies in life, it is important to prioritise retirement planning so that you are able to enjoy your golden years, when it comes” Khoo Kah Siang, Chief Executive Officer of Manulife Singapore said.

Those that prioritise other expenses and investments said they would rather save up for a “rainy day” (44%), maintain their current lifestyle (34%), and save for medical needs (26%).

Yet, the impact of inflation posed to be the main concern for personal financial risk with 68% of the surveyed respondents stating this.

About 63% of Singaporeans still heavily rely on cash and bank accounts. But rising inflation could badly affect cash-dependent persons.

“The over-reliance on cash as a savings tool in Singapore exposes Singapore consumers to inflation risk – inflation eats away at the value of cash savings. So, it’s important to find avenues that offer compounding returns.” Siang said.

The study surveyed 1,037 Singaporeans between the ages of 25 and 60 years old who already have insurance or plan to invest in the future. The survey period was from end-December 2022 to end-January 2023.