Surveys Says Covid-19 Pandemic Affects Retirement Among Singaporeans

A survey done by digital wealth manager Syfe explored the financial impacts of Covid-19 and retirement appeared to be one of the main concerns among Singaporeans. 

A whopping 71% of respondents do not think they can retire comfortably. This is an increase from 69% in 2019. Most respondents are doubtful that they can maintain their current lifestyles in retirement. 

Retirement readiness of Singaporeans post-pandemic

The survey involved 1,000 Singaporeans between the age of 25 to 60 years old. The respondents of the survey covered Singaporeans from all income groups. The mechanism of the survey is assigning a Retirement Readiness Index score to each respondent whereby the score accounts for an individual’s estimated retirement income over their estimated retirement needs. In short, the score is a reflection of the retirement readiness of Singaporeans. 

The score details are:

• Very low (<70)
• Low (70-99)
• Adequate (100-129)
• High (>130)

Around 24% of survey respondents scored above 130, meaning they consider themselves to be set and ready for retirement. On the other hand, around 38% scored below 70, meaning they are not prepared for their retirement. 

This highlights the income gap in Singapore and may cause retirement inequality in Singapore in the future. 

Other findings from the survey 

Some of the other interesting findings from the survey were:

1. Millennials are at a great pace when it comes to saving around 20% of their monthly salary. A whopping 66% of millennials below the age of 35 save more than 20% of their monthly salary. 
2. Homeowners are generally less ready for their retirement compared to those who rent their homes. This is more so if their property does not contribute to retirement income. 
3. Covid-19 has been a catalyst for many Singaporeans to finally get serious about financial planning. A whopping 72% of the survey respondents started taking actions for their retirements due to the effects of the pandemic. 
4. Those who save at least 30% of their monthly income are more ready for retirement than those who save less than 30% or do not save at all. 

How can you be more financially-savvy for a more secure retirement?

One of the crucial things to start your financial journey is by having clear and up-to-date financial knowledge. Research and find out relevant information before you start your financial journey. 

Be wary of getting rich quickly schemes because being financially secure is a long term process and anything that shouts fast and easy should be approached with caution. 

Information portals such as Donbuddy Singapore is a trustable financial platform that provides the latest financial news and information to fellow Singaporeans. From credit cards and personal loans comparison to investment strategies, you will be able to find the information you need. 

Kickstart your financial journey before it is too late!