A recent survey by Sun Life Singapore reveals that high-income individuals in the country are struggling with retirement planning, largely due to escalating living costs and family support obligations.
According to the findings, 15% of high-income earners save less than 10% of their income for retirement. Alarmingly, 40% of these individuals begin their retirement planning only five years or less before their expected retirement date, while 11% do not engage in any planning at all.
High-income workers anticipate retiring at the age of 64, a significant shift from the current trend where high-income retirees leave the workforce at 58. Despite only 4% failing to plan for their retirement expenses, a striking 15% of high-income retirees report feeling overwhelmed by unexpected costs. Half of this group attributes their financial strain to the rising cost of living, while another 50% highlights the growing necessity to provide support to younger family members.
In response to these pressures, 75% of high-income retirees have resorted to liquidating long-term income-generating investments, and 63% have reduced their daily expenditures. Additionally, 19% of high-income non-retirees have chosen to delay their retirement plans.
The survey also indicates that 6% of respondents regret their past financial decisions, with 100% citing a lack of wise investments, 67% regretting an early retirement, and 33% lamenting insufficient savings and lack of investment diversification.
The survey gathered insights from 3,500 participants across mainland China, Hong Kong SAR, Indonesia, Malaysia, the Philippines, Singapore, and Vietnam regarding their retirement strategies.
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