According to HSBC’s Future of Retirement report Singaporean retirees are not achieving retirement goals due to their ongoing and pro-longed financial support of family,. The report also finds that the phenomenon of ‘giving while living’ is affecting retirees’ inheritance plans.
HSBC’s Future of Retirement is a global research study that looks into the retirement trends and views of more than 16,000 people in 15 countries. The findings for Singapore are based on a survey conducted on August and September 2014 of 1,000 people of working age (25 and over) and in retirement. HSBC Future of Retirement finds 81% of Singaporean retirees (versus 73% global average) are being forced to let go of one or more of their retirement goals due to budget constraints in retirement - a potential consequence of prolonged financial support of family, particularly children.
The report reveals 59% of retired Singaporeans are providing ongoing financial support to dependants and a quarter of these retirees regularly give to grown-up children (25%) and grandchildren (5%). Matthew Colebrook, Head of Retail Banking and Wealth Management, HSBC Singapore said: “Singaporean retirees are failing to achieve their retirement aspirations due to financial commitments that have continued into retirement.” “Singaporeans’ strong family ties are playing a role in the rise of the 'living inheritance’ phenomenon where parents are supporting children into adulthood.
This adds another dimension to the already complex financial pressures faced by Singapore retirees,” Mr Colebrook added. Respondents to the survey highlighted an array of unachieved aspirations with 21% saying they were unable to take frequent holidays and 16% saying they were unable to buy an expensive item. Inheritance plans falling away due to ‘giving while living’ HSBC Future of Retirement also reveals that the impact of ‘giving while living’ is creating a chasm between Singaporeans’ desire to leave an inheritance and their ability to do so.
The report shows 66% of pre-retirees (versus 74% global average) intend to leave an inheritance to their children; however, only 18% of pre-retirees have received an inheritance, which is significantly lower than the global (32%) and regional (30%) average. Colebrook concluded: “There is a widening gap in the inheritance that Singaporeans want to leave and what they actually will.
This demonstrates that while 'giving while living' is on the rise, the provision of traditional inheritance may be declining.” “However, Singaporeans shouldn’t have to choose between living their life and also providing for their loved ones. At HSBC, we provide customers with tools and insights to help them identify gaps between their long-term financial capabilities and aspirations.
