Be it at the age of 67 or younger, most of us look forward to the day we can finally kick back and relax, and retire. However, for some, how comfortably one retires depends heavily on years of planning and resources put towards a retirement plan.
Retirees speak of consistent planning and discipline, but there are also some who have warned that caring for your mental and physical health prior to retirement is just as important as saving money for it.
In a debate back in 2017 regarding the employment age, opposing views were exchanged. On the one hand, it was stated that there needed to "be bolder work towards removing the retirement age and allow a worker to work as long as he or she could". However, this was rebutted with the notion that doing away with a retirement age would affect career aspirations of younger workers, among other things.
Does retiring in Singapore truly mean to put one's feet up after years of hard work or is it an incentive for something else?
What does retirement actually mean?
There has been a growing number of Singaporeans who say that retirement does not necessarily mean it's time to stop working completely.
Rather, they view it as an opportunity to finally pursue a career or endeavour they weren't able to in their younger years. It's a time to take on something less permanent or dabble in interests they did not have the time for before.
This notion seems to suggest that younger Singaporeans have confidence in their ability to earn even in their golden years and not a time to enjoy themselves.
However, some surveys have revealed that the financial planning methods of younger Singaporeans might not be able to support this goal of retiring to pursue their idea of retirement, putting away only as little as $250 per month and prioritising on purchasing property or spending on other luxuries.
Are Singaporeans ready for retirement?
While there is nothing wrong with spending as one sees fit in the moment, younger Singaporeans seem only to have the focus of saving to achieve near-term goals instead of longer-term planning.
"Retirement" can often be misconstrued in financial literacy as the start of a lifelong holiday when it merely means to stop working. Household bills and daily necessities are not put on hold simply when one has retired.
Saving does not have to be a complicated process if one understands its importance and how to handle finances. However, if this seems like a daunting undertaking, you can consider getting professional financial advice from our Financial Advisers. As Financial Advisers, we understand how important it is to save for retirement — be it early retirement or when the time is right. To start saving and growing your money now, get in touch with us.
If you are interested in helping others make a difference in their life and sound financial decisions, consider joining our team, we'd love to talk more!