It notes a shift from traditional views of retirement as a ‘period of passive rest’ to one of meaningful contribution and engagement
[SINGAPORE] Most Singapore residents plan to work after retirement, but less than a third of this group cited financial reasons as their sole motivator, a study by AIA found.
Of the 55 per cent of respondents who said they plan to continue working post-retirement, only 28 per cent want to do so for purely financial reasons, the eighth edition AIA Live Better Study conducted in May reported.
The search for purpose was named as a motivation by 27 per cent of respondents, while 26 per cent said they wanted to work after retiring to combat boredom and 18 per cent cited the desire to try something new.
The study noted a shift from traditional views of retirement as a “period of passive rest” to one of meaningful contribution and engagement.
However, it found a gap between Singapore residents’ aspirations for retirement and readiness for it – with many being inadequately prepared for the life stage.
Notably, less than half the survey respondents are optimistic about achieving their desired lifestyles, and 53 per cent are uncertain about attaining their retirement goals, AIA said.
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Financial, physical and social wellness as key pillars
The study identified three key pillars for retirement – financial readiness, physical health and social wellness.
It found that social wellness is often overlooked despite being critical, with a happy retirement found to be strongly linked to time spent with family and friends.
However, only 37 per cent of survey respondents had considered social wellness as an important factor for retirement, and were taking steps to prepare for it, AIA said.
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Interestingly, marital status affected one’s retirement outlook. More married individuals (53 per cent) held positive views about this life stage than their single counterparts (36 per cent), the study said. This finding suggests that families can provide inherent support, AIA said.
Single individuals faced unique challenges and expressed greater worry about a lack of caregiving arrangements, the study said. This led to them planning more actively for part-time work, social activities and community engagement in their retirement years, to maintain independence and connection.
Financial concerns surrounding retirement remained a major pain point for Singapore residents. Only half of them claimed to be financially stable. Those in their 40s expressed the most negativity towards retirement, with 29 per cent holding a pessimistic outlook, the study said.
About six in 10 (62 per cent) of the respondents said that cost of living was a key concern, and 54 per cent cited healthcare expenses; 42 per cent named having insufficient savings to achieve their ideal lifestyle as a financial concern.
Physical health was ranked by 46 per cent of respondents as the No 1 factor for a happy retirement, but 40 per cent foresaw having to manage healthcare conditions. This is particularly salient among young seniors aged 50 to 64; 45 per cent of this group said they expected to face health issues.
Concerns about losing physical mobility (cited by 47 per cent) and managing chronic illness (44 per cent) were other top health-related concerns of respondents.
Cognitive decline was named by 38 per cent of respondents as a health concern.
Most Singapore residents have started to plan for retirement, but many remain unprepared in key areas, the study said.
For instance, 20 per cent have not considered the possibility of being by themselves, without their spouse or children. Additionally, 17 per cent have not thought about long-term care, and 14 per cent have not considered retirement insurance coverage.