One in three Singaporeans wants to quit before 60: poll

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#1
It's not easy to retire on this little red dot! Not unless you were born with a silver spoon, or somehow managed to achieve financial freedom despite the odds...... Tongue

Business Times - 22 Feb 2011

One in three Singaporeans wants to quit before 60: poll


Policymakers may face even bigger social problem than just labour shortage

By CHUANG PECK MING

POLICYMAKERS pushing Singaporeans to work beyond their retirement age to keep the economy humming are not going to like this: more than one in three Singaporeans want to quit for good even before they hit 60, two years shy of retirement age, says a recent global poll.

The figure is larger than the global average, which is 30 per cent, according to the poll of over 26,000 consumers by marketing research firm The Nielsen Company. But it is smaller than the figure for the Asia-Pacific region, where two in five people want to retire before 60.

In Malaysia, 56 per cent of the consumers - the biggest number in the 53 countries polled - were keen to retire early.

What the poll reveals suggests that policymakers here may face an even bigger social problem than just labour shortage, if more people drop out of the workforce prematurely.

While many Singaporeans want an early retirement - and many have already hung up their work clothes before 60 - many also cannot afford to, at least not comfortably.

Only 14 per cent of the consumers polled here indicated that they are financially ready to call it a day at work, lower than the 22 per cent average for the Asia-Pacific region and 18 per cent for the world. What's more, almost half - 47 per cent - of the consumers polled admitted that they are not sure if they have the means to retire.

'Although it seems that many Singapore consumers hope to retire before 60, most of them may not be able to do so comfortably,' says Joan Koh, Nielsen managing director in Singapore. 'With the rising costs associated with inflation, some are also unsure about their financial readiness to retire.'

Singapore sure looks like an expensive place to retire than, say, Thailand. Indeed, the poll shows that two in three - 68 per cent - Thais are confident that they can get by nicely with an early retirement.

They topped the poll's list of nationalities most financially prepared to retire. The Indians (31 per cent) came in second, followed by the Chinese (24 per cent).

At the bottom of the list are the Japanese and South Koreans, both at 10 per cent. It seems rather ironic that people living in less affluent country can afford to retire more easily than those living in richer countries.

'That's simply because the cost of living is easier to keep up with in countries like Thailand and India, than in Japan or Singapore,' one economist observes.

Ms Koh says that Singaporeans also cannot afford to retire early because they are going to live longer.

'They may need to stay longer in the workforce as their life expectancy increases. In order to retire early, they will be looking to build their nest eggs by exploring alternative sources of income, investment strategies, or cut back on buying non-essential and luxury items.'

The poll shows a large number - 43 per cent - of Europeans indicating that they will depend on government-run plans as their main source of retirement income. About a third - 31 per cent - of Americans said that they will rely on personal savings.

In the Asia-Pacific, 51 per cent of the consumers polled also said that they would fall back on their savings, and 21 per cent on government-run of company retirement plans. Four in five - 82 per cent - Singapore consumers said that personal savings would be their primary source of retirement income.

What do consumers want to do after they retire? Nearly three in four - 73 per cent - of Singapore consumers want to travel, 51 per cent want to do charity work and 49 per cent want to join a club.

'Singapore consumers are avid travellers and enjoy expanding their horizons,' Ms Koh says. 'The increase in the number of budget airlines in the region has made travelling to other countries much more convenient and affordable.'

Most - 66 per cent - in the rest of the Asia-Pacific region also wish to travel after retirement, 46 per cent plan to join a club and 35 per cent indicated that they would take care of their grandchildren.
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#2
Quote:more than one in three Singaporeans want to quit for good even before they hit 60, two years shy of retirement age

Given what we know about Singaporeans' CPF balances and assets outside of CPF, I think very few will be ABLE to "quit for good" by even 65, if ever. We should be mentally prepared to see many more old folks working in future. Some of them will be our relatives and friends. Some of them will be... us.
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#3
(22-02-2011, 09:13 AM)d.o.g. Wrote:
Quote:more than one in three Singaporeans want to quit for good even before they hit 60, two years shy of retirement age

Given what we know about Singaporeans' CPF balances and assets outside of CPF, I think very few will be ABLE to "quit for good" by even 65, if ever. We should be mentally prepared to see many more old folks working in future. Some of them will be our relatives and friends. Some of them will be... us.

I think we'll also see more people of that age group moving to Batam, Malaysia, Thailand or some place where you SGD buys you two burgers instead of one here.

Singapore will become more cosmopolitan than ever. As it is, many of my friends or relatives already go on holiday during CNY when it is probably one of the times of the year that we actually see each other so I think when the future comes, Singaporeans will be more mobile than ever.
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#4
I think most people (>50%) if not all want to quit before 60.


just quite some of them are more realistic than others. they knew they would not be able to quit before 60.
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#5
I do not think the survey help much. Is more of creating News.

Just my Diary
corylogics.blogspot.com/


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#6
The situation is not that bleak. I have heard of people who are out of the rat race in their 30s and teaching others how to do it.

Anyway, what those surveyed want are quite achievable :

Nearly three in four - 73 per cent - of Singapore consumers want to travel, (trip to JB, Batam is very affordable)

51 per cent want to do charity work (there are a lot of vacancies for social workers)

and 49 per cent want to join a club. (most male citizens have SAFRA club memberships, no?)



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#7
Quote:I have heard of people who are out of the rat race in their 30s and teaching others how to do it.

I think u got the cause & effect reversed. It should read:

I have heard of people in their 30s who teach others how to get out of the rate race, so that they can get out themselves.
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#8
I think it's okay to work, but not every job is meaningful (Matter of perspective)

Should get a hobby concurrently..........seriously......
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#9
Even if you have the means, retirement can be quite boring if you do not know what to do.
Personally I have tried to see what it is like to retire(not that I have the means),
so I spend time on hobbies and travel for a period of time and it got stale after a while.
But it sure beats the daily grind of going to work.

When we first start working, we squeeze into packed trains and rush to meet deadlines and targets.
Then we get a pay increment, we can afford a car. Congrats, welcome to the traffic jam club.
There isnt anywhere you can get to during the peak hours without a jam. It takes longer than the MRT, but at least
you now have a private air-con cabin to help you burn your cash away. Goodbye packed trains, hello traffic jams and no parking spaces.

So this will continue until we retire. Retirement is quite magical. Suddenly, you are worth NOTHING to the company.
On the month before retirement, you draw a comfortable 5 figure monthly salary. Come retirement, it drops to zero. You are no longer needed.
What about the 45 years of working experience? What about achievements and awards you have picked up during the past 45 years of work?
You may be in the pink of health, alert as ever, still be able to run the marathon, but it still doesn't change the fact that you are worth nothing to the company now.

So what we have to realize is that this is a totally ****ed up concept.

(Bosses, forgive me for saying this.)
Each employee has a value greater than what he/she is paid for.
What the employee needs to do is to extract all that he/she is worth by himself/herself or as a collective group.
the redundancies in many corporations is ridiculous, too many superiors doing too little to justify their fat pay.
I believe this was what Olivia Lum of hyflux fame did, and success came to her.


















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