We want to retire here, but can we afford it?Singapore is a good place to retire indeed as it is a rather cosmopolitian and safe place to live in. The level of healthcare is also excellent here. However, it may be too expensive for us to retire comfortably due to the high cost of living here and the social welfare support, which is only available at the basic level, is not helping too.By Lediati Tan
(Taken from the New Paper on June 07, 2009)
YES, I would love to grow old in Singapore, but it's too expensive.
These sentiments were revealed in a study released yesterday on public perception and attitudes towards ageing and seniors.
The study, commissioned by Council for Third Age (C3A), covered 2,000 Singaporeans and permanent residents, aged 16 and above, between last 28 Nov to 23 Dec.
A majority - 74 per cent - expressed their wish to grow old and retire in Singapore, but only 56 per cent felt that it was affordable to do so. (See report on right.)
Significantly, only 47 per cent of those aged 65 and above - the lowest among the six age groups - felt it was affordable to grow old here.
Respondents told The New Paper that medical cost is their top concern. Handyman Bob Lee, 52, said it was a case of 'can die but cannot fall sick'.
He said: 'The cost of living here is very high. When you grow old, there will be more than once when you end up in hospital. The medical bills are very expensive.'
Based on his own experience, Mr Lee said that when he sought treatment at a private hospital, he ended up with a $30,000 hospital bill, of which half was covered by his insurance.
However, marketing communications executive Lee Junxian, 25, and retiree Peggy Chang, 60, felt that Singapore is generally affordable.
Said the younger Mr Lee: 'There's a perception here that it's quite expensive to grow old. But I think that if you plan for retirement, government subsidies are quite sufficient.
'It's really about being prudent. If you are responsible, retiring in Singapore shouldn't be a problem.'
He said that it was important to plan for old age by having adequate health insurance and savings.
He added that insurance coverage and government subsidies helped cover 80 to 90 per cent of his grandfather's dialysis cost.
Agreeing, Madam Chang said: 'You must be prepared. You cannot depend on your children or the Government.
'Those who are not medically fit and are without health insurance, the medical bills can be really expensive, and it will be a problem.'
The older Mr Lee, however, felt that it will be difficult for the average Singaporean to plan for retirement if they are already struggling to make ends meet.
He said: 'For the average person, it's a struggle to make a comfortable living. You can't really think of retirement, unless you are wealthy enough with lots of reserves.
'I look at my friends, and see a lot of people struggling, especially with home mortgage and other things. They cannot make retirement plans themselves.'
Commenting on the results, C3A chairman Gerard Ee stressed the importance of reaching out to all age groups and educating them on retirement planning.
He said: 'People now live a lot longer - which means they need to have a strategy and an idea of the quality of life they would like, and how much they will need to set aside for it, and then save adequately.'
SURVEY RESULTS
Those who want to retire in Singapore:
Overall: 74 per cent
Those who think it's affordable to retire in Singapore:
Overall: 56 per cent
Breakdown by age group
16-24 years old: 50 per cent
25-34 years old: 56 per cent
35-44 years old: 59 per cent
45-54 years old: 59 per cent
55-64 years old: 61 per cent
Above 65 years old: 47 per cent
To put things in perspective, we can make a simplfied calculation on how much it cost for us to retire in Singapore. For example, you are 30 now and you would like to retire at the age of 60. The average male life expectancy in Singapore is 78 years old currently so it is expected that you will live for another 18 years. You aim to have an income of $5,000 every month to fund your retirement thus you would need a total of $5,000 * 18 years * 12 months = $1.08 million by the time you turn 60. The question now is are you adequeately prepared and taking an initiative to achieve this amount of money by the time you retire ? If not, do you have any plans to generate an amount of passive income that support you in your retirement ? If not, it is time to start taking action now.
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