Singapore investors lag in retirement planning

Only four in 10 have started planning for retirement.

Whilst Singapore investors have invested in numerous areas, retirement planning is notably missing from their portfolios.

Data from Fidelity International revealed that only 41% of Singapore investors have begun planning for retirement. 

Retirement planning is more common amongst the 45-69 age group, with the percentage increasing to 64%.

Meanwhile, younger investors are increasingly attentive to the benefits of early retirement planning, with 19% of those under 30 having initiated their plans and 27% giving it serious thought, even if they haven't started.

The study also found that over a quarter (27%) of Singapore investors have only a basic understanding of retirement planning.

Most investors anticipate needing an average of $5,300 monthly in retirement or approximately 68% of their current monthly income.

However, investors are concerned about not having enough for retirement due to investment losses (57%), being forced to retire earlier than planned (54%), and income shortfalls resulting from time off for family duties or maternity leave (34%).

In response to these concerns, investors indicate they plan to bridge the gap by reducing expenses (44%) or continuing to invest throughout retirement (44%)

Post-retirement, investors plan to allocate their money into fixed deposits (47%), stocks (46%), and bonds (45%).

When asked why they chose fixed deposits, the top reason was the guarantee of returns (26%), followed by attractive returns (19%) and a preference for safe financial products (16%).

Interestingly, among investors with fixed deposits maturing this year, the majority still intend to reinvest in another fixed deposit (63%), with stocks (33%) and bonds (26%) as the next most popular choices.