Etiqa Insurance Singapore Retirement Insights Report 2024

These findings highlight Singaporeans' awareness of the need for a robust retirement plan, as the cost of living and inflation rates^[3] continue to rise. However, with many starting later in life and underestimating the funds needed to achieve their goals, there is a need to balance early retirement with the realities of financial planning.

"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.

"It is key that Singaporeans start saving early and invest wisely. They should factor in the impact of inflation on their retirement savings, make necessary adjustments over time and ensure they have protection in place for unexpected events, such as accidents and medical issues, that could derail their plans. This proactive approach is essential to help them maintain their desired standard of living in their golden years," added Mr. Ong.

Evolving Financial Priorities Amongst Younger Singaporeans

Younger Singaporeans, including millennials and Gen Z, also adopt a conservative approach to retirement planning, with the survey also revealing their preference for low-risk financial instruments, with savings accounts (Gen Z: 61%/Millennials: 65%), CPF contributions (Gen Z: 56%/Millennials: 54%), and fixed deposits/savings bonds (Gen Z: 44%/Millennials: 52%) as their top financial tools to fund their retirement.

While this cautious approach might have been useful in capitalising on the high-interest rate environment of recent years, 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 report reveals that 1 in 3 seniors wish they had saved more consistently and aggressively. By learning from the experiences of older generations, younger Singaporeans can consider adopting a more proactive and growth-oriented investment approach to better secure their financial future.

The desire to secure the next generation's financial future is evident among younger Singaporeans, with 78% of millennials and 68% of Gen Z prioritising wealth transfer as part of their financial goals. While this desire to secure both their financial future and that of the next generation is good, it can inadvertently exacerbate the retirement gap for younger Singaporeans should it take precedence over their own financial security.

Other key findings of the survey include:

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

• 33% of seniors and 30% of Gen X acknowledge that consistent and aggressive saving could have significantly increased their retirement funds over time.

• 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.

Etiqa Insurance Singapore Retirement Sentiment Study Report Methodology

The Etiqa Insurance Singapore Retirement Sentiment Study Report^[4] was conducted in collaboration with Kantar in June 2024, surveying 1,009 individuals across four age groups: Gen Z (18 to 28 years old), Millennials (29 to 43 years old), Gen X (44 to 59 years old), and Seniors (60 and above). This study delves into the attitudes and preparedness of Singaporeans towards retirement, providing valuable insights and guidance to help individuals unlock their retirement potential.

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The issuer is solely responsible for the content of this announcement.

References

1. ^{^} Media OutReach Newswire (www.media-outreach.com)
2. ^{^} Etiqa Insurance Singapore Retirement Insights Report 2024 (www.etiqa.com.sg)
3. ^{^} cost of living and inflation rates (www.straitstimes.com)
4. ^{^} The Etiqa Insurance Singapore Retirement Sentiment Study Report (www.etiqa.com.sg)