Saving for retirement takes back seat for young: Survey

SINGAPORE — Saving for retirement is not a priority, at least until after one turns 36, falling behind concerns like buying a property, and paying for daily needs, a survey by NTUC Income has found.

Through online polling of 554 working Singaporeans, and face-to-face interviews with 98 retirees in September last year, the insurer found that short-term financial commitments hamper the ability of young Singaporeans to save for retirement.

Among those who have not started saving for their retirement, about four in 10 of the working adults cited other immediate financial commitments as their reason.

For instance, 20 per cent of Singaporeans aged between 25 and 35 years old, said saving for their first property was their priority, followed by setting aside cash for their daily needs (14 per cent), and saving for retirement (14 per cent).

In contrast, for those between 36 and 49 years old, the priorities are reversed, with over 30 per cent listing saving for retirement as their top concern.

This was followed by putting aside cash for daily needs and unexpected events.

As for retirees, the survey findings also presented a gap between aspirations and reality.

Retirees, who had saved for their retirement, said they only managed to amass one-third of what they perceived to be sufficient for their golden years. This could be due to not saving up (35 per cent).

The average starting age among those who saved, was 45 years old.

Retirees surveyed also said that they have to depend on their family for funds, while over three in 10 said they have to continue working into their retirement years.

Nevertheless, the survey reflected a willingness to save for retirement among young Singaporeans.

Over one in two, between the ages of 25 and 35 years old, have started to save and plan for their future. Over 80 per cent of them were also willing to save S$300 per month for their future needs.

Commenting on the findings at a media conference today (Feb 15), NTUC Income chief marketing officer Marcus Chew said: “When young people hear the word ‘retirement’ and ‘financial planning’…a few things come to their mind...(for instance) ‘I am too young to retire’ or ‘I can’t put too much money aside now, as I have other financial commitments’.”

The survey findings, he added, showed the need to provide the young with guidance and knowledge to help them kick-start their retirement savings plans.