About half of affluent in S'pore not ready for retirement

June 14, 2008
About half of affluent in S'pore not ready for retirement
By Chia Yan Min
NEARLY half of comfortably well off Singapore residents - or 46 per cent - have yet to start saving for their retirement.
This finding came out of the Zurich International Life (ZIL) Wealth Monitor, a report on the attitudes and future plans of Singapore's emerging affluent.
The trend emerged despite the fact that Singaporeans said they would like to retire at 53 and expats at 56.
A total of 200 residents and 200 expats were surveyed in face-to-face interviews in April and last month. Respondents were selected based on their ability to pay insurance premiums of $2,000 a month. Most were earning $8,000 to $10,000 a month.
Sixty-nine per cent of the respondents said they would rather save for their long-term future than spend excessively now, but few were actually doing so.
In fact, 27 per cent were not confident of attaining sufficient funds for their retirement. Only 8 per cent of Singaporeans and 7 per cent of expats were very confident of doing so.
'With populations living longer and society having increased financial needs compared to generations ago, it's clear that saving for retirement has to start at an early age,' said ZIL regional director Carlos Sabugueiro.
The survey also indicated that very few placed a high value on independent financial advice. Only 25 per cent of Singaporeans were turning to professionals for financial planning advice, preferring instead their friends and family.
'There's a timidness towards taking the first step in investing for the future, especially with the market volatility we're seeing today. People have to understand there are ways around that volatility. You simply need to put yourself in front of a financial professional you can trust,' said Mr Andy Robinson, ZIL's distribution head for South-east Asia.
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