Only 1 in 3 Singaporeans believe they will be able to retire at their preferred age
- Only one in three (36%) Singaporeans think they will be able to retire at the age they want to (before age 60)
- Majority of Singaporeans (53%) worried that they will not be able to afford an adequate standard of living in retirement
- Aviva's MyIncomePlus aims to address the survey's findings, enabling older Singaporeans to approach retirement with peace of mind
There is a significant gap between when Singaporeans would like to retire and when they think they will actually be able to do so, according to the latest findings from Aviva's Consumer Attitudes Survey released today. While the majority of Singaporeans (54%) would like to retire before age 60, only a third of the population (36%) think they will actually be able to do so. Furthermore, the findings show that that the majority of Singaporeans (53%) are worried that they will not be able to afford an adequate standard of living in retirement.
Singaporeans, however, continue to save in great numbers with over 9 in 10 (92%) confirming they have some form of savings in place and the majority (56%) stating that they have already begun saving specifically for retirement.
Despite this, there is a noticeable gap between how much Singaporeans think they will need in retirement and how much income they will actually have. While 56% of respondents believe that they will need S$2,000 to S$6,000 per month to maintain an adequate standard of living, 48% say they will actually only have less than $2,000 per month based on their current financial plan for retirement. This shortfall indicates that Singaporeans are likely to look to supplement their savings as they approach retirement.
Mr Daniel Lum, Director of Product and Marketing at Aviva Singapore, said, "Singaporeans understand the need to plan for retirement. However, there is a significant shortfall between how much they think they need during retirement and how much they will actually have. This disparity has quite understandably led to the majority of Singaporeans being worried about their standard of living in retirement. Coupled with inflation and low interest rates, it is unsurprising that two thirds think they will not be able to retire at their preferred age."
Aviva recently launched a new retirement savings product, MyIncomePlus, which aims to address a number of these issues and particularly the concerns of older Singaporeans, who are only five to ten years away from retirement. MyIncomePlus is a short term, single premium product that offers guaranteed capital and guaranteed returns of up to 1.81% per annum at maturity. Payouts come in the form of a monthly income for 10 or 15 years. For those who prefer a lump sum payout, or a mix of lump sum and regular income, MyIncomePlus also provides those options.
Mr Lum explained, "When you're only five or ten years away from retirement, it's natural for you to start feeling anxious about whether your funds can last through your retirement and provide you with an adequate standard of living. MyIncomePlus addresses these concerns by providing a savings solution that can help Singaporeans grow their money in their 'last dash' before retirement."
Aviva's Consumer Attitudes Survey also found that 67% prefer a guaranteed rate of return over higher potential upside, when selecting a retirement savings product.
Mr Lum added, "At older ages, there's limited time to rebound from large losses so capital preservation should be the key priority. That's why MyIncomePlus is designed to guarantee our customers' capital and provide guaranteed returns."
Infographic of Aviva's Consumer Attitudes Survey (CAS) findings – The Retirement Gap in Singapore