Over half – or 60% – of Singaporeans feel that they don’t have enough savings for their retirement in 2020, compared to the 57% who felt they were not quite ready for retirement in 2019, says Syfe.
The figures come as 73% of Singaporeans have either increased or maintained their level of savings in 2020 than they did in 2019, according to the Singapore-based digital wealth manager.
The findings are based off Syfe’s latest Retirement Readiness Index (SRRI) that the sentiment among Singaporeans, on their readiness to retire, has worsened during the Covid-19 pandemic.
In 2020’s index, 33% of those surveyed feel they will retire less comfortably compared to 29% of those in 2019.
According to the survey, which was carried out in late 2020 among 1,000 working adults aged 25 to 60 years old, the median SRRI score was 84, a marginal improvement from 2019’s score of 82. That said, over 60% of participants in the latest survey recorded a score of less than 100.
This means there is “a potentially large margin for improvement required” for Singaporeans to score 100 SRRI points and above, and meet the level that Syfe’s methodology deems necessary for respondents to be considered “ready to retire”.
Furthermore, the survey found that 72% of Singaporeans surveyed agree that the pandemic has prompted them to plan for their financial future, something Syfe says they were less focused on previously.
Over half – or 56% – surveyed added that they still prefer consulting a human advisor when they need financial advice, especially when they see market swings that may have a negative impact on their investments.
“The impact of the Covid-19 pandemic has been felt in practically every aspect of our lives and naturally increased individual concern around financial security. It was therefore encouraging to see a marginal improvement in overall SRRI scores but, with the economic environment as challenging as ever, it is even more critical that Singaporeans review their approach to savings and investment to ensure that they can prepare adequately for the future,” says Dhruv Arora, founder and CEO of Syfe.
“We hope the findings of our latest survey will compel more Singaporeans to examine how they can optimise their approach to retirement planning and future-proof their finances. It’s not too late for individuals to act to improve their retirement preparedness,” adds Sebastian Sieber, partner at Syfe.
