Retirement Concerns Singaporeans Face Today and Steps to Deal With These Concerns

What retirement concerns do Singaporeans face today and how do we deal with them? How can Singaporeans effectively prepare for retirement?

Recent key findings from the Etiqa Insurance Retirement Survey 2022 highlight that almost half of Singaporeans (48%) were not confident about retiring comfortably. In addition, younger Singaporeans are more worried about retiring comfortably by the age of 65 than their older counterparts. 1 in 5 have started retirement planning from the age of 24 or even younger.

Top concerns relating to retirement include finances and health, with 84% of respondents indicating financial independence to be of utmost importance, and 73% of respondents seeking to be physically independent. Other worries include failing health (42%) and running out of funds (23%).

In addition, Singaporeans strive for continued productivity, and most Singaporeans plan to spend their time wisely by continuing to contribute to society, with 49% planning to do part-time work and 27% intending to volunteer.

However, with so much to do and so little time to plan, what can Singaporeans do to ensure that they can retire comfortably?

Another survey conducted by Milieu Insight highlighted that more than half of the people in Singapore often wake up feeling tired. Almost two-thirds of Singaporeans aged 16 – 44 do not take nutritional supplements regularly and over half of those aged 16-24 don’t take active steps to ensure they eat balanced meals every day. This makes retirement planning even more necessary.

So how do you start planning to live healthily and comfortably when you retire?

1. Insurance

Of course, first and foremost, ensuring that you’re covered by insurance is extremely important. The more important types of insurance you should consider getting are health insurance, long-term care insurance, and life insurance. As healthcare costs in Singapore are likely to increase in the future, it is extremely important to have insurance to cover your medical bills should you fall ill in the future. Remember to start applying for these insurance plans early to avoid higher premiums in the future.

2. Diversify your investments

Consider maintaining a mix of investments including stocks, bonds, and other assets which you feel fit your risk tolerance. A well-balanced and diversified portfolio will ensure that you can generate income even after you have retired. As such, you should start investing early so that you will have plenty of time to adjust your investment plans if necessary. Speak to your financial advisor or a few financial advisors as well as do your research before you make any investments.

3. Reduce your debt

Another key consideration to a comfortable retirement is to ensure that you pay off your loans before you near your retirement age. In addition, try to reduce your general spending as this would ensure that you do not have to stress over credit card payments every month.

If it seems very overwhelming, start writing down your income and expenses on a piece of paper or spreadsheet so that you can clearly see where and how you can budget.

Look at your loans and strategise how much you can afford to pay off every month. You can strategise whether you’d like to pay off the smallest loan or the largest loan in bigger monthly instalments. Whichever strategy it is you adopt, don’t forget to give yourself a pat on the back when you see the loan being fully paid off!

4. Calculate your retirement expenses

In order to effectively plan for your retirement, you need to start calculating how much you require to live comfortably. While certain expenses such as healthcare may increase while you age, other expenses such as your expenditure on transportation and clothes may decline. In addition, it is helpful to envision the kind of life you aspire to have when you retire. If you aspire to travel around the world when you retire, your expenditure may be even higher than they are now.

It is useful to calculate your retirement through this formula: Monthly Retirement Needs x 12 months x (Estimated Years of Retirement) or you can calculate it using it simpler mode through this website.

5. Calculate your retirement income

Besides calculating your retirement expenses, you would also need to calculate your retirement income to ensure that you have a comfortable amount of income to match your expenditure. You can visit this website to calculate the amount of savings you need based on your desired retirement age and retirement lifestyle.

6. Continue to exercise

We can never stop preaching the merits of exercise. It can be as simple as taking walks in the park or just 15 minutes in the gym. Whatever your choice, do keep your exercise regime so that you can ensure a healthy retirement to enjoy all the things you’d like to enjoy in your senior years.

7. Plan your diet

We don’t mean going on a diet to lose weight. However, as one ages, your nutritional needs will change. Did you know that you will lose muscle mass every year after hitting 65? As such, it is important to increase the amount of protein and maintain an exercise regime to ensure that your bones and muscles are strong even in your retirement.

It’s never too late or early to start! Even if you’re in your 20s, you should probably spend some time thinking about how you want your retirement life to be like. We recommend that you start with these steps first as they’re not too hard to do!

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