As Singaporeans live longer, assumptions they may have held about the traditional, sequential progression of life stages no longer hold sway.
We surveyed over 1,200 residents of the city-state to understand their hopes, worries and plans for financing their older age as many look forward to living into their 80s, 90s and even beyond. Over half (56%) of respondents expressed confidence that they have already saved, or will be able to save, enough to support living until they die. That, however, leaves 44% who think otherwise, and the majority’s confidence is likely to have been dented as the covid-19 crisis has deepened. There are already real concerns evident in the survey, particularly among millennial-age Singaporeans, that financing older age will grow increasingly tough.
They are re-evaluating their lifestyles and saving habits so they can be well prepared for the future. While Singaporeans are a nation of prudent savers, only 5 in 10 (56%) feel confident about having enough for tomorrow. This means a large proportion do not feel financially ready for longevity.
Here is a strong sense of responsibility among Singaporeans to take care of their family, be it ageing parents or growing children. Those in the age group between 25 and 34 face the most pressure. Almost 9 in 10 (89%) expect to financially support their aged parents; and 7 in 10 (71%) expect to support their children.
3 in 5 (61%) believe they will not outlive their retirement savings. To fund their retirement, 6 in 10 (66%) say they are willing to invest more of their savings to support a longer life.
With rising lifespans, many aspire to take career breaks to follow their passions, travel, care for the family, and further their education. People are moving away from the traditional route of school, work and retirement and embracing multi-stage lives.
They are diversifying their savings, using financial tools such as insurance and equities to grow and to protect their wealth. In addition, more than 4 in 5 (87%) millennials plan to invest in their health and skillsets so that they remain financially self-sufficient for their extended years.
These uncertain and challenging times further prove the need to be well prepared. By taking an active interest in managing our finances, we can all be better equipped to embrace the opportunities that a longer life presents, and live fully to 100.
Saving for 100 : Funding longevity in a time of uncertainty is an Economist Intelligence Unit report, commissioned by Prudential Singapore. It explores the financial challenges Singaporeans face as life expectancy rises and how they plan to manage their wealth in anticipation of living a longer life. It also considers the implications of the covid-19 crisis for people’s ability to save for longevity. The analysis is based on a survey of 1,219 Singapore residents conducted in February and March 2020.
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