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19 December 2007
Singapore
Despite much recent talk about the subject of retirement in Singapore, one-fifth of the working adults are not yet certain when they can afford to retire.
In a recent study conducted by The Nielsen Company amongst working adults in Singapore, over one third (36%) expressed that they would ideally like to retire by the age of 55. While a minority (5%) wishes to remain in the workforce until they are 65 years old, 10 percent held on to their enduring working spirit of never wanting to retire.
“Going by our study, it is apparent that the ideal retirement age varies widely amongst different individuals. In addition to the flexi-working hours, organizations may want to explore a flexi retirement age system to cater to the varying aspirations of the working population,” commented Ms Connie Cheng, Associate Director for Customized Research, The Nielsen Company, Singapore. “A more tailored remuneration package suiting different individuals’ ideal career span may serve as a driving force and source of motivation to those who are willing to work doubly hard in exchange for an early retirement deal.”
When respondents were asked when they think they can actually afford to retire, the degree of certainty varies across the different occupation groups. One-third (34%) of the blue-collar workers professed that they are unsure, while one-fifth (22%) of the other white-collar workers felt the same. A smaller proportion of the PMEBs (14%) appear uncertain about the issue.
The survey on retirement was conducted in September 2007 through the Nielsen web-based CATI Omnibus, interviewing 550 working adults in Singapore.
Indeed many are apparently yet to work out their sums with over one a third (37%) of the respondents clueless about the amount of money they will require to retire. (Chart 3)
When asked when they would be confident about the sum they have accumulated for their desired retirement, a slightly different picture emerged –– some working Singaporeans are seemingly unsure whether they can afford to retire at their ideal retirement age. While only a minority (under 5%) professed they can afford to retire by the time they are 45 years old, an astounding 22 percent have no clue of when they will be able to enjoy their golden years. Notably, the vast majority of the workforce (61%) said they should be able to retire by 65 years.
As results of Nielsen’s another study - the Nielsen Media Index 2007 – suggests, over eight in 10 (82%) Singaporeans agreed it is important to have a financial plan for retirement. “Indeed proper financial planning is crucial and putting thoughts into actions is even more critical to ensure a dream retirement comes true,” commented Ms Cheng. “The large number of Singaporeans who have not worked out their sums presents an opportunity for financial institutions like the banks and insurance providers to come forth with their much-needed expertise,” noted Ms Cheng.
Close to one-fifth (17%) of the Singaporeans acknowledge that they will need nothing less than a seven-digit figure to retire comfortably. “Coupled with Singapore’s rising cost of living, Singaporeans ought to make adequate retirement plans to acquire the tidy nest egg necessary in order to enjoy their retirement,” said Ms Cheng. “In 2004, it was reported that the number of millionaires in Singapore rose at the fastest pace in the world. So a million dollars may not be too demanding a target.”
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