Over 4 in 10 Singaporeans have not started saving for retirement: report

An alarming 31% of workers older than 55 have no savings at all.

While discussions on the Central Provident Fund’s (CPF) adequacy to provide for Singaporeans’ retirement continue, a report released today revealed that an alarming number of Singaporeans are not saving properly for their retirment.

According to Aviva's Consumer Attitudes Survey, 44% of Singaporeans have not started saving for retirement at all. Whilst it may be expected that a majority of those aged between 25 and 34 would be in this position (55%), it is more concerning that 31% of those over age 55 have also yet to begin saving for retirement.

Among those who have not started saving, 41% said that they cannot afford to save, while 25% are saving for other priorities such as their children’s education.

For those who have started saving for retirement, 64% rely on CPF. Further, 54% also have endowment or investment-linked plans to supplement their retirement fund and 45% have direct investments such as shares, bonds or unit trusts.

When it comes to medical expenses incurred in old age, CPF – or more specifically, Medisave and MediShield – is the most common tool Singaporeans are relying on (73% Medisave, 70% MediShield). One-third (34%) plan to make use of their Integrated Shield plan, with 32% listing cash as part of their plan.