A recent report from OCBC’s Financial Wellness Index has shed light on a concerning trend in retirement planning among Singaporeans.
The findings reveal an overall decrease in individuals actively contributing to their retirement funds. According to the survey, only 21% of Singaporeans are currently on track with their retirement plans in 2023. This is an 8-percentage point drop from 2022.
More from OMY: Study reveals one in four young seniors lack a solid retirement plan
The study delved into age-specific patterns, highlighting that individuals aged 60 to 65 exhibit the highest level of adherence to retirement plans, with 56% on track.
Following closely are those in their 50s, with 50% aligned with their retirement goals, while individuals in their 40s lag behind at 37%.
Conversely, the younger demographics face a more significant challenge in staying on course with their retirement plans. Only 27% of Singaporeans in their 30s are on track, while 16% of those in their 20s are actively contributing to their retirement funds.
There is also an overall decrease in Singaporeans actively working on their retirement plans. The report indicates a decline of 8 percentage points, bringing the total to 60% of the population actively engaged in retirement planning.
More from OMY: Singapore slips to fourth place in retirement finances sub-index
Breaking down the age groups, seniors aged 60 to 65 are the most proactive in planning for retirement. Conversely, those in their 20s are the least active in working towards their retirement goals.
More from OMY: Guide To Supplementary Retirement Scheme (SRS) Account In Singapore