60% of Singapore’s younger generation plan to delay retirement to save more money

A recent survey found that Singapore’s younger generation is ill-equipped to deal with the financial realities of retirement, polling 42% in Sun Life‘s latest survey titled Retirement Reimagined: facing the future with confidence. Additionally, 15% of respondents do not have a financial retirement plan.

In anticipation of Asia Pacific’s (APAC) significant demographic shift, with nearly one in four people over the age of 60 by 2050, the leading international financial services organisation aims to deepen connections for its individual and institutional clients through a wide range of services such as asset management, wealth, insurance, and health solutions.

The survey, conducted in July 2024, included 3,552 respondents across seven countries in APAC to learn more about their aspirations and planning as they prepare for old age. It covered three main topics: saving for retirement, retirement aspirations, and planning of retirement expenses.

Adjusting expectations towards saving more for retirement

Not surprisingly, 60% of respondents delayed retirement because they needed to save more. This also reflected the increasing awareness amongst the younger generation of the changing economic conditions and personal circumstances.

For instance, the research found that while younger generations aspire to retire early, they are also increasingly aware of the looming challenge and adjust expectations accordingly.

In addition, current workers, also known as non-retirees, anticipate retiring at an average age of 64, five years later than the average age of 59 at which current retirees exited the workforce. 

“As Singaporeans navigate a rapidly evolving retirement landscape, it’s clear that the shift towards personal financial responsibility is accelerating across all income levels,” said Mr Christopher Albrecht, Chief Executive Officer at Sun Life Singapore. “Regardless of income, starting retirement planning earlier provides a stronger foundation for a comfortable and sustainable retirement.”

Albrecht added that the survey findings indicated the importance of securing financial independence. However, the majority of respondents still do not plan early enough.

In addition, starting retirement planning earlier provides a stronger foundation for a comfortable and sustainable retirement.

Retirement adequacy on the rise

Retirement adequacy has grown in interest over the past few years, with more individuals and APAC countries adopting it as a long-term strategy.

For instance, Millennia Village, a new retirement village in Seremban, Malaysia, carved out of a former granite quarry, offers active senior living and purposeful designs designed with today’s modern, active, and engaged seniors in mind.

The village also brings together a thriving community of like-minded seniors that incorporates all the fundamental aspects of a Blue Zone, known for its high concentration of centenarians and low rates of chronic illness.

Additionally, a community farm garden on an adjacent three-acre lot allows residents to grow their fruits and vegetables, which enables them to learn about permaculture and gardening from fellow residents, village staff, and invited experts.

Building on the momentum, Sun Life Singapore’s ultimate mission would be to enhance early planning and strategic investment decisions among individuals, which are essential for safeguarding their financial future and the future of their loved ones.

This article was originally published in The Peak.