\n 60% of Singaporeans face an uncertain future by not prioritising their retirement planning <\/p>\n
SINGAPORE\u00a0–\u00a0Media OutReach<\/a>\u00a0–\u00a07 July
The average RQ score for Singaporeans is 55%, and 40% of surveyed
In two
As a simple rule of thumb, monthly income is recommended to be spilt using
\u00a0<\/p>\n
Ms.
\u00a0<\/p>\n
“We
\u00a0<\/p>\n
From pre-pandemic
\u00a0<\/p>\n
In
\u00a0<\/p>\n
Today,
\u00a0<\/p>\n
Pre-pandemic[6]<\/b><\/p>\n
\n <\/td>\n
<\/p>\n Today[7]<\/b><\/p>\n
\n <\/td>\n
Average intended retirement age was 58.8 years old<\/p>\n
\n <\/td>\n
<\/p>\n Average intended retirement age widened to 60 years old<\/p>\n
<\/p>\n \u00a0<\/p>\n
<\/p>\n \u00a0<\/p>\n
\n <\/td>\n
Median value set aside for retirement each month was S$251 \u2013 S$500<\/p>\n
<\/p>\n \u00a0<\/p>\n
\n <\/td>\n
<\/p>\n Median value set aside for retirement each month remains the same at
<\/p>\n \u00a0<\/p>\n
\n <\/td>\n
Expected monthly expenditure during retirement was S$1,500<\/p>\n
<\/p>\n \u00a0<\/p>\n
\n <\/td>\n
<\/p>\n Expected monthly expenditure during retirement is now S$2,000<\/p>\n
<\/p>\n \u00a0<\/p>\n
<\/p>\n For young families with kids,
<\/p>\n \u00a0<\/p>\n
\n <\/td>\n
Retirement expectation:<\/p>\n
<\/p>\n Retirement expectation:<\/p>\n
\u00a0<\/p>\n
No
\u00a0<\/p>\n
While
\u00a0<\/p>\n
“Achieving
\u00a0<\/p>\n
A <\/u><\/b>holistic approach to retirement preparedness<\/u><\/b><\/p>\n
\u00a0<\/b><\/p>\n
Retirement
AIA Singapore in partnership with Ipsos developed a Retirement
Financial Preparedness <\/b><\/p>\n
Financial
\u00a0<\/p>\n
Social Support <\/b><\/p>\n
While
\u00a0<\/p>\n
Health Preparedness <\/b><\/p>\n
Good
\u00a0<\/p>\n
Trust in Institutions <\/b><\/p>\n
While
\u00a0<\/p>\n
Conclusion<\/u><\/b><\/p>\n
\u00a0<\/p>\n
While parents
\u00a0<\/p>\n
Understanding
\u00a0<\/p>\n
For
[2]<\/i><\/b>\u00a0AIA Save
[5]<\/i><\/b>\u00a0The AIA
[6]<\/i><\/b>\u00a0According to
[7]<\/i><\/b>\u00a0According to
60% of Singaporeans face an uncertain future by not prioritising their retirement planning SINGAPORE\u00a0–\u00a0Media OutReach\u00a0–\u00a07 July
2021\u00a0– AIA
Singapore today unveiled that young families in Singapore have deprioritised
planning for their retirement because they are spending at least 2.5 times more
of their monthly expenses on their children’s needs rather than taking charge
of their …<\/p>\n","protected":false},"author":1,"featured_media":16123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/16122"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=16122"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/16122\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media\/16123"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=16122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=16122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=16122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n2021\u00a0– AIA
\nSingapore today unveiled that young families in Singapore have deprioritised
\nplanning for their retirement because they are spending at least 2.5 times more
\nof their monthly expenses on their children’s needs rather than taking charge
\nof their own retirement planning. Parents spend almost 20%[1]\u00a0of their income on their children but less than 7% on their own retirement
\nplanning. 70% also said they intend to either maintain or increase the amount
\nof income allocated to their children’s expenses.<\/span><\/p>\n![](\"https:\/\/release.media-outreach.com\/release.php\/Images\/Thumb\/500x0\/161505\/image002-1-.jpg#image-161505\")
<\/p>\n
\nSingaporeans scored below 50 – an indication that retirement preparedness has
\nroom for improvement.<\/i><\/p>\n
\n
<\/p>\n
\nstudies[2]\u00a0conducted among 1,000 and more members of the general population of Singapore
\nin January 2021 and June 2021 respectively, the leading life insurer identified
\nthree factors driving these financial priorities among young families:\u00a0<\/p>\n\n
\non bank savings. <\/b>For 92% of Singaporeans, bank deposits are the most
\npopular savings instruments, while 21% supplement their bank savings with investment
\ntools. Nearly 1 in 3 Singaporeans’ savings was negatively impacted in 2020. Singaporeans
\nuse at least 3 tools to manage their savings, with a median amount of between
\nS$251-S$500 set aside monthly for retirement.<\/li>\n
\nand emergency spending instead of longer term goals like retirement. In terms
\nof savings goals, emergency spending is the top priority (64%), followed by
\nensuring financial security for the family (56%). Among young families with
\nkids, 76% intend to leave an inheritance for their children, but only half have
\nstarted planning for it.<\/li>\n
\nretirement lifestyle is increasingly expanding, but most are underestimating
\nthe amount needed<\/b>. Singaporeans have one of the longest life
\nexpectancies in the world at 84.8 years[3].
\nOn average, Singaporeans plan to retire at 60 years old, which will require at
\nleast 25 years of retirement income. Close to half of respondents want to maintain their current lifestyle
\nafter retirement, but more than two-thirds (66%) underestimate the actual
\nretirement amount needed by S$967 per month. Among families with children, the
\nunderestimated amount is slightly higher at S$1,020 per month.<\/li>\n<\/ul>\n
\n50\/30\/20 rule[4].
\nAllocate the first 50% of one’s take-home income pay on necessities such as
\nhousing, food, and transport. The remaining half should be split up between 20%
\nfor long-term savings and investments and with 30% for “wants” like hobbies and
\ntravel. However, research shows that Singaporeans are 13% below the target for
\ntheir retirement planning. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nMelita Teo, Chief Customer and Digital Officer, AIA Singapore<\/b>, said, “Retirement
\nplanning is an essential part of securing our longer term financial security,
\nnot just for parents, but for the entire family, so everyone can look forward
\nto a brighter future with peace of mind.”<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nrecognise this is not an easy balancing act, especially amid growing financial
\ninsecurity as a result of COVID-19. Many also fear becoming a burden on their
\nchildren later on in life. As part of AIA’s brand promise of enabling
\nSingaporeans to live healthier, longer, better lives, we want to help people better
\nmanage their financial priorities when preparing for their golden years. We are
\ncommitted to continuously innovating our suite of customisable solutions with
\nthe goal of ensuring that a golden retirement is within reach for Singaporeans,
\nno matter the circumstances,” added Ms. Teo.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nto endemic COVID-19: The shortfall between expectations and reality of
\nretirement is widening<\/u><\/b>
\n
<\/p>\n
\n
<\/p>\n
\nMarch 2020, the AIA Retirement Quotient (RQ) survey[5]\u00a0showed that 54% of Singaporeans were 14-years short when it comes to adequately
\nplanning for their retirement, when compared to the national average life
\nexpectancy of 84.8 years old. While most Singaporeans have started planning for
\ntheir retirement, 70% felt underprepared. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nretirement goals have taken a backseat. COVID-19 uncertainties further
\nnecessitated the shifting of savings allocation towards their children and
\nshorter-term needs such as emergency funds instead of themselves.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n\n\n
\n
<\/p>\n
<\/p>\n
\n <\/tr>\n\n
<\/p>\n
<\/p>\n
\n <\/tr>\n\n
<\/p>\n
<\/p>\n
\n S$251 \u2013 S$500\u00a0 \u00a0<\/p>\n
\n <\/tr>\n\n
<\/p>\n
<\/p>\n
\n the expected amount is slightly higher: S$2,100<\/p>\n
\n <\/tr>\n\n
<\/p>\n \n
\n work entirely but is an opportunity to pursue hobbies and passion projects. <\/li>\n
\n careers upon retirement. Only 38% intend to cease work altogether. 49% intend
\n to continue working reduced hours and 13% want to switch career paths entirely.<\/li>\n<\/ul>\n<\/td>\n
<\/p>\n \n
\n the economic fallout of the pandemic will last beyond the second half of
\n 2021.<\/li>\n
\n maintain their current lifestyle, an equal percentage also expect a much
\n simpler lifestyle during their retirement.<\/li>\n<\/ul>\n<\/td>\n
\n <\/tr>\n<\/tbody>\n<\/table>\n
\n
<\/p>\n
\ndoubt a result of COVID-19 uncertainties as well as changing attitudes towards retirement,
\nthe retirement goals consumers are setting today have also become more modest.
\nMost of these goals are still pegged almost exclusively to financial health and
\ndo not consider other aspects of wellness. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nthe pandemic had accelerated the need to save more, Singaporeans’ focus,
\nhowever, has been on short-term savings for their emergency and family needs,
\nwith little regard for their retirement, even though they are expecting an
\nincrease in their monthly expenditure during retirement. Their mindset still
\nremains, which is worrying as they are still setting aside the same S$251 to
\nS$500 median value\u00a0 for their retirement
\neach month, while expecting to maintain their current lifestyle when they
\nretire, while not forgetting the inflation rate which would affect how much
\nyour retirement dollars will really be worth in the future. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nour desired retirement is not limited to being financially prepared, Singaporeans
\nneed to look beyond just their finances if they intend to truly enjoy their
\ngolden years. To help them on this journey, besides continuing to study the
\ngaps in Singaporean’s retirement readiness, we have also developed a tool to
\nhelp Singaporeans take a more holistic approach to retirement. By considering
\nall aspects of retirement preparedness, we are empowering our customers to let
\ntheir aspirations drive the structure of their retirement plans, rather than allowing
\ntheir current finances dictate their future,” added Ms. Teo. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nis an issue of national importance in Singapore, home to one of the most
\nrapidly ageing populations in the world[8].
\nIt is estimated that by 2030, one in four people will be aged over 65 years
\nold, and by 2050, the number is expected to increase to almost one in two[9].
\nDespite the urgency of the situation, many of the retirement products available on the
\nmarket only cater to financial and health preparedness and do not account for
\nthe emotional, mental, and social aspects of retirement. <\/p>\n
\n
<\/p>\n
\nQuotient (RQ) \u2013 an indicator to measure Singaporeans’ retirement readiness and
\nguide them on a more holistic retirement planning journey. The RQ is made up of
\nfour distinct pillars to guide Singaporeans to achieve their golden retirement:
\nfinancial preparedness, health preparedness, social support, and trust in
\ninstitutions.<\/p>\n
\n
<\/p>\n
\npreparedness remains the biggest but far from the only determinant of
\nretirement preparedness. Financial preparedness is determined by the following
\nattributes: having in place a clear financial plan that allows one to achieve
\ntheir desired retirement lifestyle, and being confident in having made
\nsufficient financial preparations to accumulate enough wealth to account for
\nretirement.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nthe vast majority of Singaporeans opt to confide in a partner or spouse about
\ntheir plans for retirement, one in five Singaporeans do not share their
\nretirement plans with anyone. RQ respondents who scored poorly in the social
\nsupport pillar tended to receive low scores throughout. The second largest
\npillar of retirement preparedness, the positive impact of social support
\nindicates that retirement is not just a personal decision and that having
\ndeeper conversations with loved ones, whether they be family, dependents, or friends,
\ncontributes significantly to retirement preparedness. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nhealth alone cannot drive retirement preparedness, but it enhances individual
\nretirement preparedness when coupled with robust financial planning. In terms
\nof health, 59% of Singaporeans said that reducing the risk of illnesses was the
\nprimary motivator to keeping fit as opposed to enjoying their later years
\n(41%). Of the 59%, married couples and families cited wanting to avoid
\nfinancially burdening their loved ones as the reason, while others were keen to
\navoid depleting their nest eggs on additional healthcare costs.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ntrust comprised the smallest pillar, low scorers for this section tend to be
\nthe least prepared for retirement, are not financially-savvy, and have little
\naccess to professional advice from established financial institutions including
\nbanks and insurers.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nprioritise their children, almost 70% of young parents with children do not
\nwant to burden them and other family members and friends financially during
\nretirement. However, the irony is that those who are facing a shortfall in
\ntheir retirement planning might have to rely on their children for retirement
\neventually. Hence, as parents prepare their children and give them the best for
\ntheir bright future, they should also consider proper retirement planning for
\nthemselves to avoid burdening their children during their golden years.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nthe gaps ahead of one’s \u00a0golden years and
\nhaving a trusted partner are crucial elements in attaining a well-rounded retirement.
\nAIA Singapore is committed to journeying with Singaporeans to help them be
\nfinancially prepared by offering a \u00a0comprehensive suite of innovative products and
\ntools, while also inspiring them to lead healthier lifestyles. AIA Singapore’s aim
\nis to ensure everyone can have the financial freedom to live their desired
\nretirement and be in pink of health to enjoy their golden years with their
\nfamily. \u00a0\u00a0<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nmore information on AIA’s comprehensive retirement proposition, please visit: https:\/\/www.aia.com.sg\/retirement<\/a><\/p>\n
\n
<\/p>\n
<\/p>\n
\n
<\/i>[1]<\/i><\/b>\u00a0Parents
\nspend almost 20% of their income on their children’s needs, encompassing education
\nand saving for their children’s future.<\/i>
\nSmarter Study 2021 surveyed general consumers across eight markets \u2013 Hong Kong,
\nChina, Thailand, Malaysia, Vietnam, Indonesia, Philippines, and Singapore \u2013 in
\nJanuary 2021. AIA360 Retirement Study 2021 surveyed 331 customers in Singapore
\nin June 2021.<\/i><\/p>\n<\/div>\n
\nRetirement Quotient (RQ) survey studied 1,000 members of the general Singapore
\npopulation mid-March 2020.<\/i><\/p>\n<\/div>\n
\nfindings from the AIA Retirement Quotient (RQ) survey conducted in mid-March
\n2020. <\/i><\/p>\n<\/div>\n
\nfindings from AIA Save Smarter Study 2021, AIA360 Retirement Study 2021, and
\nAIA Health Matters Survey 2021 conducted in June 2021.<\/i><\/p>\n<\/div>\n<\/div><\/div>\n\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"