Highest savings in world, but can't retire

May 15, 2007

More S'poreans positive about retirement
Poll shows monthly savings are second highest in world

By ST


A GLOBAL retirement survey by insurance giant AXA Group has found that Singaporeans rank second-highest in terms of monthly savings for retirement at $824 - the likely amount they save under the CPF scheme. Yet slightly more than half believe they will not have sufficient income when they retire.

Singaporeans also rank fourth-highest in terms of disposable income in retirement at $2,122. Against expenses of $1,360, they are in the black by $760. But this finding could be skewed by the survey's high 'no answer' rate.

Singaporeans also cited the second-youngest age when asked when they would like to retire. Yet 71 per cent of working respondents said they plan to do a paid job in retirement.

=> This then explains the 66% syndrome - refusing to kick out the leeching regime while wanting better life?

AXA's biannual Retirement Scope survey seeks to gauge attitudes towards retirement, level of preparedness and how people want to spend their time in retirement.

The latest survey involved 11,590 respondents in 16 countries. In Singapore, 306 working adults and 305 retired adults were interviewed by phone.

Annette King, chief marketing and strategy officer of AXA Life Insurance, said: 'AXA is committed to understanding our customers' lifestyles and preferences and the survey findings . . . are a useful tool for us to gain insight into the retiree market.'

More than seven in 10 Singaporeans see retirement as positive. And their optimism over retirement has risen. Compared with a 2005 survey, positive feelings about retirement rose almost 20 per cent among working and retired respondents.

Working Singaporeans put their ideal retirement age at 54, while those who have already retired said 60. Those at work cited 59 as their actual retirement age, while those have already retired said 56. These are the second-youngest ages in the survey.

Singaporeans who have already retired generally wish they had retired four years earlier, though two-thirds of respondents said they favour extending the retirement age.

About 56 per cent of working Singaporeans have begun to prepare for retirement. But this is significantly lower than the US and Canada, for example, where 85 and 78 per cent have begun to save.

In terms of retirement income, 69 per cent of Singaporeans expect it to be lower than their last earned salary, yet two-thirds expect living standards to improve or stay the same.

Savings outside of CPF funds are expected to be the main source of income, followed by the CPF. In terms of the use of CPF funds for the future, 76 per cent use CPF to fund their homes and 73 per cent have money in their account to earn interest.