A quarter of Singaporeans yet to start planning for retirement

They also project an expenditure of less than $6,000 per month.  

Amongst younger generations, 71% of millennials and Gen Z plan to retire by the age of 60, according to the Etiqa Insurance Singapore Retirement Insights Report 2024.

They are also projecting an expenditure of less than $6,000 per month, with 57% of millennials and 74% of Gen Z expressing this sentiment.

Amongst younger Singaporeans, most millennials (75%) and Gen Z (69%) are confident that they will achieve their retirement goals. 

“While it is heartening to see more Singaporeans take proactive steps towards preparing for retirement, many still underestimate the time horizon and funds needed to sustain their desired lifestyle. This could lead to a potential retirement gap,” said Raymond Ong, CEO of Etiqa Insurance Singapore.

The survey also revealed that younger Singaporeans, including Gen Z and millennials, prefer low-risk financial instruments for retirement planning. 

Their top choices include savings accounts (61% for Gen Z with 61% and millennials with 65%), CPF contributions (Gen Z with 56% and millennials with 54%), and fixed deposits or savings bonds (Gen Z with 44% and millennials with 52%).

However, younger Singaporeans are encouraged to rethink their retirement strategy in today's uncertain economic environment to grow potential investment returns, increase their ability to accumulate sufficient retirement funds and leverage the power of compounding over time.

The desire to secure the next generation's financial future is also evident among younger Singaporeans, with 78% of millennials and 68% of Gen Z prioritising wealth transfer as part of their financial goals. 

Eight in 10 Singaporeans plan to retire between the ages of 50 and 70. 

Moreover, 75% of Singaporeans have prioritised planning for retirement, typically starting at age 35. 

However, 25% of Singaporeans have yet to start retirement planning, with top reasons including prioritising immediate financial needs (38%), reliance on CPF savings (34%), and insufficient savings (30%).

Additionally, 41% of Singaporeans consider investment as a key retirement strategy, but a third of those who invest lack confidence in their approach.

Those lacking confidence in investing cite fear of losing money (57%), insufficient financial knowledge (53%), and high risk (45%) as their main concerns.

Healthcare needs and expenses remain a key focus in Singaporeans’ retirement planning, particularly for seniors (63%) and Gen X (51%), who are acutely aware of the costs associated with ageing. 

Additionally, insurance coverage is becoming a significant focus in retirement planning, with about 38% of Singaporeans prioritising it.