HSBC’s Future of Retirement 2018 report suggests something rather startling—perhaps the reason why many Singaporeans are not saving for their retirement years is that they ‘don’t feel old.’
More than 17,000 people of working ages in 16 different countries were surveyed for this year’s Future of Retirement report, which asks respondents how they intend to make sure they have enough for their retirement years.
According to Business Insider Singapore, the report included 1,018 Singaporeans and shows that a mere 25 percent of working Singaporeans are currently putting money away toward their retirement. Sixty percent of Singaporeans do not perceive of themselves as old, and 35 percent say that they feel younger than their actual age.
HSBC suggests that this could be the reason why many are not saving up for their older years. Instead, a good number of respondents say that they will continue to work, begin their own businesses, or rely on government support.
Interestingly, among the Singaporean respondents, while 40 percent said that they live on a day-to-day basis, 25 percent say that they choose to spend their money on enjoying the present, while 32 percent say that they put money away for short-term goals.
Singaporeans also expect to continue to work, preferring semi-retirement even in their older years. This could be another reason why they are not putting money away for retirement. Among the respondents, 65 percent say they expect to work in one form or another during retirement, and 34 percent are planning to open their own businesses.
HSBC says that while the majority of respondents expect to live a comfortable life that they finance themselves, the latter part of life is actually costlier than others since people need more help in doing everyday activities. Respondents said they would consider either renting out extra spaces in their homes, find employment, or avail of support from the government.
A little more than half of the respondents (54 percent) also said that they expected their children’s financial support during retirement, though the researchers from HSBC say that the percentage of retirees getting financial assistance from their children is only 36 percent, and even more alarmingly, more than ten percent of retired people are still paying for their homes’ mortgages.