Manpower Minister Josephine Teo recently announced a raise in the retirement age in Singapore, “although when and by how much is yet to be determined”. In the coming months, we will likely have a clearer idea of the future retirement age. However, the question remains: can Singaporeans afford to retire?
Our polling indicates concerns amongst Singaporeans on this issue. At present, 62% of Singaporeans feel they are not saving enough for old age. This figure rises to 74% amongst those living in households earning less than $2,500 a month.
According to the LKY School of Public Policy, single elderly folks need $1,379 a month to afford a basic standard of living. While 45% of Singaporeans believe $1,379 sounds about right, one in three feel the amount is too low and three in four Singaporeans (76%) believe those already 60 years-old and above have not saved enough to live off this amount.
When it comes to retirement planning, Singaporeans still rely mainly on CPF (43%) followed by savings (38%). Relying exclusively on CPF however, may not be prudent as Singaporeans who fulfill the Basic Retirement Sum of $88,000 only receive a monthly payout of less than $800. Only 17% of Singaporeans say they actively invest for retirement, with men more likely than women (20% vs 14%).
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