A poll commissioned by Prudential Singapore has found that the great resignation has impacted Singapore residents’ plans to retire. Within the poll of 1,000 respondents, one in five residents have indicated that they intend to push back their retirement by six years, from 58 years to 64 years.
The poll was conducted in April in a bid to explore the impact of the wave of resignations on retirement and financial planning among Singapore residents.
Despite the financial implications, 52% of respondents said they left because they “no longer felt engaged at work”, according to the statement released by Prudential.
Other factors include seeking better career prospects (38%), taking a break for mental wellness (34%) and toxic work environments (34%).
However, those who have left their jobs say that are taking steps to manage the impact of their career breaks.
One in two respondents indicated that they would cut their spending by 31% every month, while 64% of respondents would adjust their lifestyles by dining out, shopping, and watching movies less frequently.
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Slightly over half of the respondents, or 51%, indicated that they would take fewer taxi or private hire vehicle rides.
Within the poll, it was found that 44% of the respondents aged 25 to 50 are unprepared for retirement. Of this particular group, 47% of them are aged between 25 to 34.
Over eight in 10 respondents, or 84%, are also worried about the increasing cost of living due to inflation, while 81% of those who participated in the poll are concerned about rising healthcare expenses.
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In preparing for their retirement, the poll found that Singaporeans mainly depend on their Central Provident Fund (CPF) accounts and bank savings to fund their later years.
Over seven in 10 respondents, or 73%, listed their CPF savings as their top source of retirement income.
According to Prudential, respondents who diversified their financial portfolio are more prepared for retirement.
Sixty-eight per cent of respondents who are confident of having enough to retire said they invested in shares, bonds and Exchange Trade Funds (ETFs), and 46% have insurance.
Meanwhile, only 50% of respondents who are unprepared for retirement have investments while 36% have insurance.
Dennis Tan, Prudential Singapore’s CEO, said that financial planning is key for employees to fully enjoy and reap the benefits of a career break.
“Many people leave their jobs to recharge and rejuvenate. However, without proper financial planning, a career break can result in greater stress and adversely impact one’s retirement plans. 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,” he says.
On saving for retirement, Tan adds: “Putting your money in different financial instruments, instead of only relying on savings, is important for retirement planning. Diversifying your portfolio also helps spread risk and smooth out volatilities during challenging market conditions. Regardless of how you plan, it is important to start planning early so you have a longer runway to grow your retirement funds.”
