S'pore's retirement
puzzle
By Elysa Chen
August 24, 2007
SINGAPOREANS don't think they'll have enough retirement money. Yet
they want their retirement money sooner, despite knowing that they
do not have enough to last till they die.
Another puzzle: They want to retire earlier, but won't mind if the
retirement age was raised.
In an AXA Wealth Management survey of 11 developed nations, barely
more than half of the 600 Singaporeans surveyed (52 per cent) felt
that their retirement incomes were sufficient.
Yet Singaporeans want to retire early.
In the same survey, Singaporeans were ranked third for wanting to
retire at 54 - one of the lowest ideal retirement ages among
respondents from the 11 countries.
Most were in favour of raising the retirement age. Only 23 per cent
of those still working and 13 per cent of retirees were against
delaying the retirement age.
This is in sync with the findings of an earlier survey by The
Straits Times which revealed that two-thirds of those polled wanted
to work beyond the retirement age of 62.
The AXA survey also found that, among the 11 countries, Singapore
has the greatest percentage of people planning to work in
retirement. Is CPF retirement money then seen as pot of gold to
reward themselves rather than a safety net?
Four out of five people polled in a recent Straits Times survey
opposed delaying the draw-down age for the Minimum Sum.
Do Singaporeans feel so secure about their retirement finances that
they have no qualms about early withdrawal of their CPF?
The AXA survey also showed that 6 out of 10 do not know where their
retirement income will come from. If all of the above doesn't add
up, does it mean that Singaporeans need help in doing their
retirement sums?
These are some findings from the surveys:
WHO SHOULD LOOK AFTER YOUR RETIREMENT?
Myself. Singaporeans ranked first among developed countries with
more than 90 per cent agreeing that individuals should provide for
their own retirement income.
DID YOU RETIRE EARLY?
Yes. Nearly three quarters of Singaporean retirees retired before
the normal retirement age of 62.
DO YOU PLAN TO WORK AFTER RETIREMENT?
Yes. Seven in 10 of those working plan to continue working after
retirement. Over a third of retirees are working.
ARE YOU POSITIVE ABOUT RETIREMENT?
Yes. Singaporeans ranked third for the highest proportion of people
positive about retirement.
WHEN DID YOU START PLANNING FOR RETIREMENT?
Working people begin preparing for retirement at 33, while those
already retired started at 43.
DO YOU HAVE ENOUGH MONEY FOR RETIREMENT?
No. Seven in 10 of those polled by The Straits Times did not think
their CPF savings could see them through old age.
AXA survey: Polled 306 working people aged 25 and above and 305
retired people under 75 in Singapore. Other countries surveyed:
Japan, Hong Kong, Australia, China, America, Canada, UK, Spain,
Germany and France.
