More than 1 in 2 Singaporeans doomed to retire under a pile of debt

How to pay off that mortgage by 65?

Financial commitments, economic downturn and unforeseen life events are disrupting Singaporeans’ efforts to save for retirement.

According to a survey by HSBC, 53% of working-age Singapore respondents said paying off their mortgage and other debts (the third highest globally in the report) is the biggest barrier preventing them from preparing adequately. Other respondents nominated recent economic downturns (27%) and unforeseen illness (23%) as the catalyst for reduced retirement saving.

“There are no guarantees in life so Singaporeans need to future-proof themselves against unforeseen events like market fluctuations, economic slumps and other challenges that will inevitably arise at some stage in their lives,” says Matthew Colebrook, Head of Retail Banking and Wealth Management at HSBC Singapore.

The report shows that with the benefit of hindsight, many retirees would have done things differently before they retired to improve their standard of living in retirement, including beginning planning earlier in life.

According to the survey, 40 percent of retirees believe that retirement planning should start at the latest by the age of 30 to build an adequate retirement savings pot.

Ian Martin, Chief Executive Officer, HSBC Insurance (Singapore), said: “Retirees’ saving lethargy is a cautionary tale for current workers. However, better late than never, Singaporeans, regardless of age or income, are not without recourse on what they can do to plug the retirement savings gap and mitigate the
negative future scenarios. They should start conversations with their wealth advisers soon to plan out their retirement.