AIA Singapore has unveiled that when it comes to retirement planning, a higher number of adults aged 36-45 and families with kids are most concerned about retirement savings dropping in value due to rising inflation. While this emerged as the top concern, less than half (39%) take inflation into account when planning for their retirement. The study amongst 455 respondents was conducted in November 2021.
Pre-retirees also appear to have lowered their retirement expectation at a time when the nation’s headline inflation rose to its highest in over 8 years. With the lingering concern that their savings will not be sufficient to maintain their current lifestyle during retirement, almost 74% are prepared to reduce expenditure if the value of their retirement savings decreases.
In addition, Singaporeans may not be aware of how much exactly they will need for retirement and are not planning long enough for their golden years. While they intend to retire at about 60 years old, they expect their savings or investment to last them till about 69 years old. However, with the average life expectancy in Singapore at 84.8 years old, there is a worrying gap of 15 years.
Ms. Melita Teo, Chief Customer and Digital Officer, AIA Singapore, said, “We recognise that the continued economic uncertainties have brought great distress and eroded financial confidence. True to AIA’s brand promise of enabling healthier, longer, better lives, we continue to take a holistic approach in helping Singaporeans be prepared with a well-rounded golden retirement, which we believe will bring the greatest value to our customers’ retirement planning journey.” “With AIA as a partner, a holistic approach to retirement means wealth and wellbeing will both grow hand in hand, not at the expense of one or the other. We are committed to continuously innovating in this space to ensure more individuals and families in Singapore can achieve their Wealthbeing.”