FUTURE retirees in Singapore expect their savings to last just 13 out of an average of 23 years in retirement, according to a report from HSBC titled "The future of retirement: a balancing act". This assumes an average retirement age of 60 years and a typical life expectancy of 83 years.
According to the report, 15 per cent of Singapore respondents believe they will never be able to fully retire - the second highest globally, after Australia.
According to retirees, the minimum household income for a comfortable retirement is S$54,000 a year (S$4,500 a month). Yet over two in five retirees live on a household income of less than S$48,000 a year, HSBC said.
Over their working life, pre-retirees on average plan to save 29 per cent of their income towards retirement savings and investments (excluding pensions). In reality, today's retirees actually saved 24 per cent of their income over the course of their working lives, HSBC said.
Retirees and pre-retirees have most confidence in property, cash deposits and insurance policies as good ways to generate income for retirement.
The report is the 10th in a series of studies commissioned by HSBC and represents the views of more than 16,000 people in 15 countries and territories.
HSBC said the findings in the Singapore report are based on a nationally representative survey of 1,000 people of working ages of 25 years and over, as well as in retirement. It was conducted online by market research firm Ipsos Mori in August and September 2014.
HSBC suggested four steps individuals can take to improve their financial well-being in retirement: start saving early, know how much one needs, replenish retirement savings that were depleted from the global financial crisis, and plan for unforeseen life events.
The global and country reports can be found here.