S’poreans Do Seem A Worrying Lot

Source : TODAY, Friday, October 5, 2007

But survey shows that they prepare for retirement better than their Asian counterparts

THE proposed changes to the Central Provident Fund (CPF) are aimed at helping Singapore's ageing population to have enough for their retirement needs. But recent discussions on the subject may have cast a pall on Singaporeans' outlook on life.

According to a survey by AXA Life Insurance, the Republic ranks the lowest of eight Asian countries and territories in terms of overall life satisfaction and planning for the future.

Conducted in August, the AXA Life Outlook Index survey measured people's outlook on career, family, health and retirement. About 2,400 people between the ages of 25 and 50 were polled in China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore and Thailand.

People in India, China and the Philippines were the most optimistic, while those in Singapore, Malaysia and Hong Kong did not share the same sentiment about their outlook on life over the next five years.

"At first glance, such a lack of confidence (in the Singapore market) seems problematic," said AXA Life Insurance Singapore chief marketing and strategy officer Annette King. "Actually, the reverse is likely to be true as lower optimism is what seems to drive people to take action early for a better future.

"In Singapore, consumers are making preparations for retirement planning earlier than everyone else in the region and that is a positive development."

Compared with an overall Life Outlook Index of 71.6 (of 100) for the region, Singapore scored 59.2 — even though Singaporeans were found to prepare for retirement better than their Asian counterparts. In fact, 6 in 10 Singaporeans started planning for retirement at the age of 34 — compared to the regional average of 39.

Of 300 Singaporeans surveyed, 59 per cent said they had started planning seriously for retirement, with 70 per cent having bought health insurance — the highest in the region. Yet, they feel they are one of the least prepared for old age.

Senior travel counsellor Madam Halijah Ibrahim is one of them.

"Of course I'm worried about rising medical costs, because it is already expensive," the 43-year-old told Today.

As for the fervent discussions about the CPF changes, Member of Parliament for Sembawang GRC, Dr Lim Wee Kiak, noted that it has made people more aware of their retirement needs.

"One good thing about this debate is that it has suddenly dawned on people that they need to save for retirement," he told Today. "It used to be many people took for granted that their retirement will be taken care of and that their CPF will last forever."

Of the four Life Outlook dimensions, career held the greatest weight in terms of influence for Singaporeans — they worried about job security and their prospects for progression leading to greater financial rewards.

Despite a strong local economy, they also worried about the rising cost of living and future opportunities — hence, their concerns about retirement and long-term financial security.