Singapore parents expect financial support from children in old age: survey
The respondents see children as ‘great investment’ for retirement
SINGAPORE parents count on their children for financial support in retirement, even as they themselves chafe against the responsibility of supporting elderly parents, said a survey published by Manulife.
The Manulife Asia Care Survey 2024 found that Singapore respondents see children as “great investment” for retirement.
That is the attitude of 60 per cent of those who plan to have kids, as well as 60 per cent of those who already have children.
Ironically, while respondents expect financial support from their children, the responsibility of supporting dependent parents is seen as a financial burden by 55 per cent of respondents.
“It appears to suggest that Singapore respondents are trapped in a cycle of financial obligations to parents and, subsequently, the financial dependence on their children,” said Manulife in a statement.
Mark Czajkowski, Manulife Singapore chief marketing officer, said: “These insights shed light on the need for discussions around financial independence and proactive retirement planning.
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“As societal norms and expectations evolve, it’s important that individuals plan for their retirement independently, reducing traditional reliance on children for financial support,” he added.
“Our findings not only highlight the unique demographic trends but also reinforce the importance of starting early and having effective financial planning strategies.”
The survey was conducted in January and February this year, and involved 1,038 Singapore residents, aged 25 to 60.
Reliance on children to provide for parents as they get older is not unique to Singapore. The average across Asia is 59 per cent, compared to 58 per cent in Singapore. But there are variations – from 30 per cent in Japan to 74 per cent in Vietnam.
The average desired number of children in Singapore is 1.5, and more than half (57 per cent) of married respondents without children are hesitant or uncertain about starting a family.
The survey also found significant gaps in well-being goals and financial confidence among Singapore consumers, which reflects “deep-rooted concerns over economic and healthcare uncertainties across all age groups”, said Manulife.
There is a 14-point gap in the Manulife MyFuture Readiness Index, with the average well-being score at 69, compared to a higher aspirational level of 83 over the next decade.
The index is a weighted average of the estimated future physical, mental and financial well-being scores of Singapore respondents.
Fewer than two-thirds of respondents (61 per cent) are confident in achieving their top financial goal.
Primary concerns include rising healthcare costs and inflation, both cited by 81 per cent of respondents, as well as an economic slowdown (77 per cent).
There is also a stark contrast in lifestyle preferences among the youth.
Those aged 25 to 29 express more confidence in achieving their goals (74 per cent) compared to the total respondents (61 per cent).
But the younger group in Singapore also has significantly different goals.
The top priority was saving for a rainy day or emergencies, followed by overseas vacations. Other objectives, such as purchasing a home and maintaining current lifestyles, rank lower.
Across Asia, only Singapore young adults prioritised the enjoyment of overseas vacations in the top three goals.
Retirement goals do not feature in the top three priorities of Singapore young adults.
To support their lifestyle choices, 35 per cent take on a second job.
More of them also invest in stocks and financial products than older respondents.
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