One in five Singapore residents have given a rethink of their retirement plans, pushing it back by as much as six years from the age of 58 to 64. This was revealed from a recent poll commissioned by Prudential Singapore to explore how the Great Resignation has impacted retirement and financial planning among residents who had resigned or intended to leave their jobs.
Also, 44 per cent of the poll’s 1,000 respondents from age 25 to 50 are not ready for retirement, with 47 per cent from this group are aged between 25 to 34. More than eight out of 10 are also worried of inflation (84%), with another big group of 81 per cent concerned about rising healthcare costs.
Yet, these concerns are not enough to sway them from the Great Resignation. 52 per cent of respondents said that they quit after no longer feeling engaged at work. Other factors include seeking better career prospects (38%), taking a break for mental wellness (34%) and toxic work environments (34%).
Mr Dennis Tan, Prudential Singapore’s CEO, said to fully enjoy and reap the benefits of a career break, one needs to plan for it financially.
“Many people leave their jobs to recharge and rejuvenate. However, without proper financial planning, a career break can result in greater stress and adversely impact one’s retirement plans. It is concerning that nearly one in two respondents are unprepared for retirement. With rising lifespans, Singaporeans need to accumulate an even bigger nest-egg so as not to outlive their savings,” said Mr Tan.
Sticking to the (Retirement) Plan
However, they are responding and changing spending habits. One in two are cutting monthly spending by 31 per cent while 6 in 10 respondents (64%) would adjust their lifestyles by dining out, shopping, and watching movies less frequently.
Most (73%) said that the Central Provident Fund (CPF) are their main source of income after retirement.
Those who are prepared for retirement and those who are not are set apart by the diversification of their financial portfolio. 68 per cent of people who are confident of having enough to retire said they invested in shares, bonds and Exchange Trade Funds (“ETFs”), and 46 per cent have insurance. On the other hand, only half of the people who are unprepared for retirement have investments, while 36 per cent have insurance.
