Retirement planning low on S'poreans' priority list

Jan 27, 2007

Retirement planning low on S'poreans' priority list

They are more prepared for medical, housing and education expenses: Poll

By Grace Ng

MOST Singaporeans are prepared for short-term financial emergencies and big expenses such as their mortgage and children's education. However, such planning falls well short in other areas like retirement.

Those were the key findings of a new survey on how ready people are for financial challenges. The answer, when it comes to life insurance coverage and retirement planning, is not nearly enough.

Only 40 per cent of those surveyed by insurer AIA and Singapore Press Holdings (SPH) say they are building a retirement fund of at least 10 times their annual income. And 64 per cent do not have life coverage of at least 10 times their annual salary.

On other fronts, however, the findings were more encouraging. Sixty per cent of respondents say they have critical illness coverage of at least twice their annual income.

And most of them are prepared for short-term emergencies, such as job loss, with 68 per cent saying they have enough cash to tide them over for at least six months.

It is also clear that Singaporeans place a high priority on properly insuring their property, with 83 per cent confident their home will be fully paid for if they die or suffer permanent disability. And 72 per cent say they will have more than enough money to pay off a mortgage if they sell their home.

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