Mon, Aug 23, 2010, my paper, By Reico Wong
SINGAPOREANS are not savvy enough when it comes to planning their long-term finances and are, thus, generally unprepared for retirement, a study by HSBC has revealed.
The HSBC Future of Retirement (FoR) survey, which polled 15,000 respondents across 15 markets and about 1,000 Singaporeans aged 30-70, found that a staggering 91 per cent of locals do not have any idea what their retirement income will look like.
HSBC said that this feeling of unpreparedness among Singaporeans was in part due to a tendency to focus more strongly on the short term.
They had limited understanding about their funds for the long haul, as reflected in the 23 per cent who indicated that they are confident about their long-term finances.
This is despite 26 per cent viewing retirement as a strong motivation to save. About 40 per cent of the locals aged 30 to 50 years said they were willing to save between $500 and $800 each month for retirement.
"This shows that Singaporeans are aware of the need for retirement planning but may not have taken action to prepare for it, perhaps because they don't know where to start," said Mr Walter de Oude, chief executive of HSBC Insurance.
He added that Singaporeans should be proactive in seeking the aid of financial advisers, even if they are saving regularly.
"They'll be able to better identify gaps in retirement planning and ensure that they are on track to achieve the retirement lifestyle they want," he said.
On the back of the FoR survey, HSBC will announce the launch of its new retirement plan, SecureIncome, today.
Targeted at individuals aged 40 to 65 years old, the plan is designed to provide a monthly income or lump-sum savings for one's future needs.
Customers are required to save at least $200 per month, and can choose to accumulate their savings over 10 years, or to age 55. One to 1.5 per cent yield is guaranteed per annum.
The policy can be extended on expiry, and customers can either leave the funds with the insurer to earn interest once again, or receive a monthly income for the next 10 years, together with a non-guaranteed monthly dividend.
If they choose the latter, they also have the option of leaving the income payments with the insurer. They will then receive additional non-guaranteed monthly dividends and interest.
Commenting on the new product, Mr de Oude said: "SecureIncome will make retirement planning less daunting, given its simple design and flexibility."
The policy allows for the deferment of premiums for a year, in the event of unemployment.
It also has a terminal-illness benefit that pays the death benefit in advance.
HSBC has, in recent years, increasingly boosted its suite of retirement solutions.
Past products from the group include Growth Manager, an investment- linked plan that facilitates regular investment and asset accumulation; and GoalSaver, which targets those younger and healthier but want slightly higher insurance coverage.
No comments:
Post a Comment