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PR Newswire
11-12-2010, 09:50 AM
Business Times - 11 Dec 2010
Top savings goal of S'poreans is retirement
But 42% of respondents think that they are not saving enough: HSBC survey
By LYNN KAN
WHILE saving for a retirement nest egg comes out as the foremost priority for Singaporeans in a survey by HSBC Insurance, Singaporeans still 'run the risk of saving short term to fund their long-term dreams'.
HSBC Asian Insurance Monitor shows that though 67 per cent of the 506 local respondents cited retirement as their top savings goal, 42 per cent think that they have insufficient funds to retire on.
The latter represents the second-highest figure behind South Korea at 49 per cent, in HSBC's Asia-wide survey of over 3,500 respondents aged 25 to 65 years old.
More worryingly, the survey reveals that few locals own or intend to have retirement-specific products to meet their post-retirement needs.
Currently, a meagre 8 per cent hold retirement income products.
When HSBC Insurance asked how they would fund their retirement needs, dipping into savings comes first to mind for them. A solid two-thirds of those polled said that they would do so through their usual savings plan, and 51 per cent through cash or time deposits.
In contrast, only 37 per cent would opt for a retirement income product.
HSBC Insurance CEO Walter de Oude said that retirement-specific savings 'clearly should be delineated' from regular savings. He observed that many who have derailed from saving for retirement often abandon the project entirely.
'Savings may be depleted by financial emergencies,' pointed out Mr de Oude. 'But retirement planning solutions ensure that the retirement nest egg isn't affected by short-term emergencies or unforeseen circumstances.'
Some signs from the survey indicate that Singaporeans want to do more to supplement their post-retirement income. About 20 per cent say that they are considering buying a product providing retirement income in the next six months.
However, there is a contradiction present in Singaporeans about this goal.
Nearly three in four Singaporeans polled would cut back on saving for retirement if their salary were cut, a figure higher than all other cities polled.
Singaporeans are also the least likely among their Asian peers to change their current financial plans, with 34 per cent saying so.
That 'reticence' may mean that Singaporeans already have a plan in place, but 'there's generally a low level of preparedness' for retirement.
Mr de Oude pointed to survey findings which show that 47 per cent of Singaporeans want to maintain their savings level, and said: 'In my opinion, you can never save enough for retirement. Singaporeans are among the least likely to increase their savings relative to other Asian countries. What they should be doing is to increase their retirement savings.'
Retirement income products such as HSBC Insurance's SecureIncome could help 'maximise one's savings to give a steady stream of income during the retirement years and also offer features such as capital protection to secure one's retirement nest egg'.
It offers yields in excess of 3 per cent and provides protection against unemployment, which nearly half of the respondents said was a financial worry.
Top savings goal of S'poreans is retirement
But 42% of respondents think that they are not saving enough: HSBC survey
By LYNN KAN
WHILE saving for a retirement nest egg comes out as the foremost priority for Singaporeans in a survey by HSBC Insurance, Singaporeans still 'run the risk of saving short term to fund their long-term dreams'.
HSBC Asian Insurance Monitor shows that though 67 per cent of the 506 local respondents cited retirement as their top savings goal, 42 per cent think that they have insufficient funds to retire on.
The latter represents the second-highest figure behind South Korea at 49 per cent, in HSBC's Asia-wide survey of over 3,500 respondents aged 25 to 65 years old.
More worryingly, the survey reveals that few locals own or intend to have retirement-specific products to meet their post-retirement needs.
Currently, a meagre 8 per cent hold retirement income products.
When HSBC Insurance asked how they would fund their retirement needs, dipping into savings comes first to mind for them. A solid two-thirds of those polled said that they would do so through their usual savings plan, and 51 per cent through cash or time deposits.
In contrast, only 37 per cent would opt for a retirement income product.
HSBC Insurance CEO Walter de Oude said that retirement-specific savings 'clearly should be delineated' from regular savings. He observed that many who have derailed from saving for retirement often abandon the project entirely.
'Savings may be depleted by financial emergencies,' pointed out Mr de Oude. 'But retirement planning solutions ensure that the retirement nest egg isn't affected by short-term emergencies or unforeseen circumstances.'
Some signs from the survey indicate that Singaporeans want to do more to supplement their post-retirement income. About 20 per cent say that they are considering buying a product providing retirement income in the next six months.
However, there is a contradiction present in Singaporeans about this goal.
Nearly three in four Singaporeans polled would cut back on saving for retirement if their salary were cut, a figure higher than all other cities polled.
Singaporeans are also the least likely among their Asian peers to change their current financial plans, with 34 per cent saying so.
That 'reticence' may mean that Singaporeans already have a plan in place, but 'there's generally a low level of preparedness' for retirement.
Mr de Oude pointed to survey findings which show that 47 per cent of Singaporeans want to maintain their savings level, and said: 'In my opinion, you can never save enough for retirement. Singaporeans are among the least likely to increase their savings relative to other Asian countries. What they should be doing is to increase their retirement savings.'
Retirement income products such as HSBC Insurance's SecureIncome could help 'maximise one's savings to give a steady stream of income during the retirement years and also offer features such as capital protection to secure one's retirement nest egg'.
It offers yields in excess of 3 per cent and provides protection against unemployment, which nearly half of the respondents said was a financial worry.
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