, Singapore

69% of Singaporeans expect to continue working during retirement

Either as full-time or part-time workers.

According to the latest Manulife Investor Sentiment Index, 69 percent of Singaporeans expect to continue in full-time or part-time work during so-called retirement. This is higher than the 55 percent average across the seven Asia markets surveyed, beating even Indonesia's 68 percent.

This, among other data, points to a lack of retirement planning in Asia, according to the survey, despite it being a top financial priority among Asia investors.

"Many are leaving it too late and nearly half say they have no financial plan for their retirement at all. As a result, a large proportion of investors are relying on fall-back options, such as extending their working life or drawing on their children's support, which may not prove reliable," said Manulife.

Survey data showed that of those who have started planning (55 percent), about one-in-five did not start until a few years before retirement, while another quarter waited either until having children or until their children had finished school.

Of the 45 percent of investors who do not yet have a plan, nearly half said they would wait until their children had finished school or until they were nearly retired, while another fifth said they did not expect to start at all.

Commenting on the findings, Robert A. Cook, President and CEO of Manulife Financial in Asia, said: "For anyone leaving it until later in life to start planning for their retirement, making up the shortfall will become harder and harder. The reality is that, without a clear plan, it won't be alright on the night."

Other findings showed that about one-in-five of those surveyed expect to rely on their children for financial support. This was particularly evident in Hong Kong (21 percent) and Malaysia (42 percent).

"We know from factors like declining fertility and household size, plus urbanization and divorce, that the family-based support system is diminishing. So people would be wise to take charge of their own retirement needs," said Michael Dommermuth, President, International Asset Management at Manulife Asset Management.

"Whether or not people succeed in covering their own retirement needs largely hinges on whether they take steps to plan, save and invest wisely, such as moving away from low-yielding bank deposits to investments that offer potential for better returns and income generation. In addition to bond or balanced portfolios, dividend-paying stock is increasingly demonstrating its ability to serve these objectives as well."  

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