The survey, titled “Retirement Reimagined: facing the future with confidence”, finds that the primary concerns of this group of retirees were the rising cost of living (50%) and the need to support younger family members more than initially anticipated (50%). In response, 75% of this group of high-income retirees liquidated long-term income-generating investments, while 63% have had to cut daily spending.
The survey shows that 40% of them leave planning for retirement expenses until five years or less before retirement, while 11% will not plan for this at all. 15% of high-income respondents save less than 10% of their income for retirement, highlighting that even those with higher earnings may be underprepared.
The study polled 505 Singaporeans about their aspirations and planning as they prepare for old age.
While 14% of retirees overall express regret over past financial decisions, this figure was lower among high-income retirees at 6%. The primary regrets for high-income retirees were not investing wisely (100%), retiring too early (67%), not saving enough (33%), and not diversifying investments (33%).
For high-income workers, the anticipated retirement age is 64, six years later than current high-income retirees, who retire at 58. Additionally, 19% of high-income non-retirees have actively postponed their retirement plans, compared to 18% of non-retirees overall.
Mr Christopher Albrecht, CEO of Sun Life Singapore said in a statement, “High-income individuals often face unique challenges when it comes to retirement planning. Our research highlights that whilst wealth can provide a cushion, it doesn't eliminate the need for careful planning.”
Saving for retirement
Overall, Singaporeans harbour a growing desire for financial security and independence in old age. Saving for retirement was cited as the number one financial goal over the next 12 months across all age groups surveyed.
In Singapore, in addition to the Central Provident Fund (CPF) scheme (including voluntary CPF top-ups) and reliance on the family, holistic retirement plans may also include individual savings, insurance, and investments.
However, many are ill-equipped to deal with financial realities as 42% will leave planning around retirement expenses until five years or less before retirement, and a worrying 15% will not plan for this at all.
Majority are ill-equipped to deal with financial realities of retirement
While most respondents save at least 10% of their income for retirement, there is 29% who do not save, which is still considered a significant population. When asked about planned sources of income for retirement, the average expectation was for 32% of income to be drawn from cash savings, underscoring a potential missed opportunity to maximise retirement income through investments to ensure it keeps pace with inflation.
Mr Albrecht said, “As Singaporeans navigate a rapidly evolving retirement landscape, it's clear that the shift towards personal financial responsibility is accelerating across all income levels. Our findings show that while securing financial independence is a priority for many, the majority still do not plan early enough. Early and strategic planning is crucial for everyone, not just to preserve wealth but to ensure long-term financial security, including the need to cater for future generations.”
Younger generations are adjusting expectations: retiring later and saving more
While other recent surveys have shown that younger generations aspire to retire early, they are also increasingly aware of the looming challenge and are adjusting expectations accordingly. The survey found that those who are currently working (“non-retirees”) anticipate retiring at an average age of 64, five years later than the average age (59) that current retirees exited the workforce.
In addition, 18% of non-retirees have actively postponed their retirement plans, compared to only 11% of retirees who did the same, reflecting changing economic conditions and personal circumstances. The primary reasons for delayed retirement include the need to save more (60%), to cover increased living expenses (56%), and to cover health expenses (37%).
Retirees caught off guard by higher costs and regret insufficient preparation
As a warning sign to future generations, 16% of retirees expressed that they had not planned their retirement expenses and 18% of retirees report being caught off guard by higher-than-expected costs – a number that looks only set to grow as inflation continues to bite.
For those caught off guard by higher costs, the key factors are the general cost of living (64%) and healthcare expenses (43%). In response, many have been forced to cut spending (57%) and liquidate income-generating investments (50%).
In addition, 14% of retirees express regret over past financial decisions, with the biggest reasons expressed by this group being not saving enough (55%), followed by not investing wisely (55%), and retiring too early (45%).
Methodology
The findings in this survey were analysed and established through a total of 3,552 interviews conducted online in July 2024 across mainland China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, and Vietnam. The majority of respondents were drawn from middle to high-income backgrounds, with some representation from lower-income bands, with a minimum age of 30.
Toronto-headquartered Sun Life is a leading international financial services organisation providing asset management, wealth, insurance, and health solutions to individual and institutional clients. Sun Life has operations in several markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda.