SINGAPORE – One in five Singapore residents who have resigned, or are actively thinking about leaving their job, expect to push back their retirement from age 58 to 64 – six years later than planned.
This is one of the findings of a poll commissioned by Prudential Singapore in April 2022, to “explore the impact of The Great Resignation on retirement and financial planning among Singapore residents who had resigned or intended to leave their jobs”.
The online survey, which had 1,000 respondents aged between 25 and 50 years old, also found that almost half of them (44 per cent) aged 25 to 50 are unprepared for retirement, with those aged 25 to 34 making up 47 per cent of this group. More than 8 in 10 respondents are worried about the increasing cost of living due to inflation (84 per cent) and rising healthcare expenses (81 per cent).
Why then are people still leaving or planning to quit their jobs?
According to the survey, conducted online by Milieu Insight, one in two (52 per cent) of those who have resigned said they no longer felt engaged at work. Other factors include seeking better career prospects (38 per cent), taking a break for mental health (34 per cent) and wanting to leave a toxic work environment (34 per cent).
Prudential Singapore’s chief executive Dennis Tan said, “It is concerning that nearly one in two respondents are unprepared for retirement. With rising lifespans, Singaporeans need to accumulate an even bigger nest-egg so as not to outlive their savings.”
Savings as main source of retirement income
How are the respondents planning to manage the financial impact of their career break?
One in two respondents would cut their spending by 31 per cent every month, while six in 10 respondents (64 per cent) would adjust their lifestyles by dining out, shopping, and watching movies less frequently. Slightly over half of the respondents (51 per cent) said they would take fewer taxi or private hire vehicles.
Further, the study showed that Singaporeans depend mainly on their Central Provident Fund (CPF) and bank savings to fund their retirement.
More than seven in 10 respondents (73 per cent) listed CPF savings as their top source of retirement income.
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