Financial education should start as early as possible in ageing workforce

REGULAR Business Times readers would by now be familiar with findings from a financial wellness survey, the results of which have featured prominently on BT's front page for a few weeks.

The survey, by OCBC Bank, provides useful insights into the financial habits and practices of Singaporeans. Some of these are encouraging - for example, 69 per cent set a budget and stick to it; 82 per cent have proactively secured medical coverage; and the average person tends to save about 26 per cent of their salary.

However, other survey findings are a little troubling - one-third do not invest; about half have no passive income, and about 37 per cent do not know the best way to grow their money. These numbers have obvious implications for retirement adequacy, so it should come as little surprise that the survey also found that almost three-quarters are not on track with their retirement plans, while two-thirds are behind as far as accumulating enough funds to maintain their lifestyle post-retirement is concerned.