Gerontophobia strikes: 83% of rich Singaporeans fear unexpected expenses in old age

Those who can afford more are afraid of sudden spending--how ironic.

According to integrated financial services provider Allianz Group, any savings and investment plan is going to be exposed to financial risk. However, these risks are bigger once the saver/investor enters retirement. Without any additional source of income, they are more vulnerable to stock market swings, inflation, unexpected old-age expenses and outliving their savings.

According to a new survey of Allianz which examines how the wealthiest 20% of 50+ Generation in Asia Tigers (Hong Kong, Singapore, South Korea and Taiwan) approach retirement:

1. With the exception of Singapore, inflation was reported as being the No.1 cause of concern.
2. 83% of Singaporean respondents are more troubled by unexpected expenses in old age.
3. 2/3 of respondents from Singapore (65%) and many in Hong Kong (42%) singled out unforeseeable medical expenses.

The survey addresses the investment attitudes and behavior, financial knowledge, information gathering and financial decision making among individuals in this segment.

The diversity in how retirees see financial risks is also mirrored in their approach to financing retirement. “The comparison of the four Asian markets sends a clear message,” commented David Fried, CEO of Allianz Asia Pacific. “We find that despite very similar challenges and personal resources, tailored and local solutions are required to facilitate financial security in retirement.”