Tuesday, March 27, 2012

Are Singaporeans ready for retirement?

How ready are Singaporeans for retirement? And do Singaporeans have enough insurance cover?

According to a study by the Nielsen Company, which issued the Global Ageing Report in February 2011, only 14% of Singapore consumers surveyed felt that they were financially ready for retirement.  This is lower than the Asia Pacific and global averages of 22% and 18% respectively.

Financial planning has to go beyond advising on investment products to evaluating the life cycle needs of an individual, including for retirement.

On insurance sum assured and protections gap, the average Singaporean is still grossly under-insured.

A 2009 study by the Nanyang Technological University found that the existing life cover of the average Singaporean is only about a third of what his dependants will need in the event of his early death.

The insurance industry should reflect on these findings and take up the challenge to narrow the shortfall in protection coverage.

The above statistics were cited by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, in an address to the insurance industry.

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Singaporeans Grossly Underinsured

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