Government initiatives to help retirement adequacy of older Singaporeans
A recent study conducted by ROSA shed light on the retirement preparedness of young seniors in their 50s and early 60s, indicating that a significant portion of this demographic still lacks a robust retirement plan.
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The study found that 27.83% of young seniors in this age group do not have a retirement plan, leaving them potentially vulnerable as they approach retirement.
On the brighter side, 50% of respondents reported having a retirement plan in place to support their golden years.
When asked about their readiness for retirement, 38% of the participants described their preparedness as “fair,” while 34% felt confident, reporting that their readiness was “good.”
Interestingly, eight out of 10 young seniors expressed confidence in their knowledge of how to manage their retirement plans. However, one in four disagreed or slightly disagreed that their retirement savings were on track.
Over 36% of participants similarly expressed doubt, stating that they did not have enough endowment plans in place for their retirement.
This study was based on survey data collected in July 2023, with a total of 6,430 respondents falling within the age range of 53 to 78.
Majulah Package addresses retirement challenges
Factors like rising inflation, the cost of living, and increasing life expectancy have created concerns regarding retirement planning for this demographic. As a response to these challenges, the Majulah Package was introduced in 2023 to target retirement adequacy, particularly for Singaporeans aged 50 and above, especially those with lower and middle incomes.
The primary objective of the Majulah Package is to encourage young seniors to continue working to achieve self-sufficiency in their retirement needs.
The package operates on means-tested criteria based on income, residence value, and savings to determine eligibility and provide the necessary assistance.
Reconceptualising work and retirement
The ROSA study underscores the importance of reconsidering the traditional definitions of work and retirement, highlighting the need for a more comprehensive understanding of the psychosocial aspects involved in these life stages.
Moreover, the study advocates for moving away from legacy insurance models and emphasises the importance of educating young seniors about modern wealth management strategies tailored to their evolving financial needs.
ROSA suggests that both qualitative and quantitative research should be conducted to gain deeper insights into the themes highlighted in the study. This approach could help develop strategies that cater to the unique needs of each generation, ensuring a more secure retirement for all.
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