04:47 AM Oct 28, 2011
SINGAPORE - Young working adults in Singapore are not saving enough. Indeed, nearly half may not be saving at all.
According to a survey by HSBC, about 48 per cent of over 1,000 respondents aged 30 to 39 in Singapore say they have no short-term savings. And only 30 per cent of those married or living together, aged 40 to 49, are protecting their assets. Of those aged 50 to 59, 34 per cent do not have retirement plans, while only 12 per cent undertake tax planning.
These findings are part of HSBC's The Future of Retirement programme, an independent study of global retirement trends.
In Singapore, HSBC found that 24 per cent of parents do not have any life insurance policy. About 53 per cent or more than half of all parents do not have individual term life insurance despite having dependent children. And eight in 10 parents here have not made a will either.
Among parents in Singapore who do have financial plans for their families, 24 per cent, or nearly a quarter, do not have any type of life insurance included in their plans.
Mr Walter de Oude, chief executive of HSBC Insurance in Singapore, said: "We are seeing a major protection gap where many Singapore families, especially those with dependent children, are failing to recognise the benefits of life insurance protection."
Still, maintaining a private retirement fund or life insurance does rank above investing in stocks and shares here, with around 20 per cent opting for the former, compared to 12 per cent for the latter.
"It is understandable that many people are cautious about having to make a trade-off between risk and long-term financial reward. Indeed, a preference for safer investment options is not an unexpected response given the investment market conditions since the financial crisis of 2008," added Mr de Oude.
The survey also found that Singaporean men are more proactive than women in making financial decisions concerning both retirement planning and household budgeting.
- Ref:itoday news
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