It’s interesting to note that even outside of the UK many older people are realising that pensions are not enough to enjoy a comfortable lifestyle, merely an existence. There is an opportunity here for insurers to offer long term savings plans with lump sums at a given date, to offer options at age 60, 65 or 70. Here’s the word;
Singapore’s aging population faces growing retirement pressures, according to Sun Life’s latest retirement survey. While many individuals choose to work beyond retirement age, a significant number – including the high-income – are doing so out of financial necessity, highlighting a lack of retirement readiness and the urgent need for better long-term planning.
The survey, titled Retirement Reimagined: Asia’s Retirement Divide, found that the majority of Singapore respondents (73%) expect to continue working beyond retirement age. This figure is more pronounced among the high-income respondents (80%).
For some, this reflects attitudes towards flexibility and wellbeing, as high-income respondents cite mental stimulation (62%), maintaining social connections (52%), and purpose and fulfilment (52%) as reasons to stay in work. For others, it reflects a financial strain as nearly half of high-income respondents (48%) say they need further income to support their daily living and long-term financial security.
Christopher Albrecht, Chief Executive Officer, Sun Life Singapore, said: “What we’re seeing is not a single retirement experience, but two very different realities. For those who are prepared, working longer can be a choice that offers flexibility and freedom. For others, it reflects financial pressure. Planning early, and planning holistically, is what determines which path people are on.”
Financial security correlates with retirement optimism
Having financial security is at the heart of optimism about retirement. Among high-income non-retirees who say they are looking forward to their golden years, 50% cite financial security as a reason, followed by freedom and flexibility (33%) and stability (26%).
However, rising cost pressures continue to bite and cause retirement stress. Nearly half of high-income respondents (49%) cite uncertainty about future expenses as a barrier when it comes to retirement planning, followed by 42% with concerns about inflation or economy uncertainty.
Planning horizons remain short, with 22% of high-income respondents only drawing up plans within two years of leaving full time work. Less than half (39%) say they feel very confident in their retirement plans.
Sandwich generation pressures reshape retirement planning
At the same time, many working adults in Singapore face the additional financial strain of supporting elder relatives as well as young dependents. Caring for both older and younger family members has led many high-income respondents to downsize their lifestyle expectations (23%) or postpone retirement (45%).
Furthermore, 80% of high-income respondents expect to continue supporting their children or relatives in retirement, underlining the need for prudent financial planning that balances long-term needs, personal freedom, and family responsibilities.
Health equals wealth in retirement
But it’s not just about the money. Current health and future expectations also play a part in shaping people’s aspirations for retirement, with better health correlating with an optimistic outlook on later life.
Of those who say their views on retirement have changed in recent years, the most cited reason is better than expected mental health (55%) or physical health (48%). Similarly, being in poor health negatively impacts retirement plans – of those who say they retired earlier than expected, poor health (27%) is a leading reason.
That said, people in Singapore increasingly want the freedom to decide when to leave the workforce – almost all high income respondents (97%) believe that retirement should be a personal choice rather than a mandatory age.
Christopher said: “People are living longer, yet too many remain unsure whether they can afford to retire comfortably in Singapore. Amid rising costs of living, the role of insurance has become more critical than ever, allowing people to gain better control over their legacy and build a future where their retirement is shaped by possibility, not pressure. Life insurance can provide the lifetime protection or liquidity that one needs for retirement and legacy planning.”
GenAI emerges as a risk factor in retirement planning
As more people turn to generative AI for financial decisions, the research highlights a growing risk of self-directed retirement planning without professional guidance. Use of tools such as ChatGPT and Google Gemini has more than doubled since the last survey, rising from 15% to 34%.
Meanwhile, reliance on traditional advice has declined, with 40% consulting banks and 42% seeking independent financial advisors compared to 47% and 44% respectively in 2024. This shift signals digital convenience and curiosity, but it may suggest an increasing financial literacy gap in the retirement space.
Christopher said: “AI can be a helpful starting point, but it often lacks the nuance and personalization needed for long-term financial security. As technology reshapes how people plan for retirement, expert advice remains essential to ensure decisions are informed, balanced, and aligned with individual goals.”
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