New report reveals even high-income earners want to retire later in life
The majority of Singaporeans are planning to retire later in life amid financial strain, according to a new report from Sun Life.
Its new survey, which included respondents in Singapore, found that 73% of Singaporeans expect to continue working beyond the retirement age.
This figure gets higher among high-income respondents, with 80%.
According to the findings, high-income respondents cite mental stimulation (62%), maintaining social connections (52%), as well as purpose and fulfilment (52%) as the top reasons to stay at work.
Financial factors also bite
However, the report also found that 48% of Singaporeans want to stay at work longer to maintain income to support their daily living costs and long-term financial security.
Even among high-income non-retirees, 49% said uncertainty about future expenses is a barrier when it comes to retirement planning.
Another 92% said they have concerns about inflation or economic uncertainty.
Christopher Albrecht, Chief Executive Officer of Sun Life Singapore, said the findings demonstrate two very different realities for employees.
"For those who are prepared, working longer can be a choice that offers flexibility and freedom. For others, it reflects financial pressure. Planning early and planning holistically is what determines which path people are on," Albrecht said in a statement.
Singapore's retirement age
The minimum retirement age in Singapore is currently at 63 years old, with organisations barred from asking employees to retire before that age.
But this is set to change this July, when the retirement age is expected to go up to 64 years, with a final target of 65 years by 2030.
The country's Ministry of Manpower said the increase was to allow more senior workers to continue working if they wish to. It will also give businesses a larger pool of workers.
Among Sun Life's respondents, 97% of Singaporeans believe that retiring should be a personal choice instead of a mandatory age.
But these perspectives can still change, especially when health and future expectations are taken into account.
Around half of the respondents said their views on retirement changed because of their mental health (55%) and physical health (48%).
In fact, 27% of the respondents said poor health was a factor in why they retired earlier than expected.
"People are living longer, yet too many remain unsure whether they can afford to retire comfortably in Singapore," Albrecht said.
He urged respondents to get expert advice on retirement plans, especially in the wake of self-directed retirement planning through the use of generative AI.
"AI can be a helpful starting point, but it often lacks the nuance and personalisation needed for long-term financial security," Albrecht said. "As technology reshapes how people plan for retirement, expert advice remains essential to ensure decisions are informed, balanced, and aligned with individual goals."
