Singaporeans see kids as “great investments” for retirement: Manulife

Saving up for retirement is not a top priority for young individuals.

Singaporeans still consider their children as “great investments” for retirement, signalling the urgent need to raise awareness on proper and effective retirement planning, according to a new study by Manulife.

Its Manulife Asia Care Survey 2024 showed that 60% of respondents planning to have children, as well as those who are already parents, consider kids as “great investments,” higher than 45% for married couples without children.

The study said this suggests that the cycle of traditional financial obligation surrounding families is still present in the city-state.

While the majority still expect financial support from their kids, it found that 56% of Singapore respondents believe that supporting dependent parents is a financial burden.

“These insights shed light on the need for discussions around financial independence and proactive retirement planning,” Mark Czajkowski, Chief Marketing Officer of Manulife Singapore said. "As societal norms and expectations evolve, it's important that individuals plan for their retirement independently, reducing traditional reliance on children for financial support.

Manulife said the study also highlighted the varying perspectives of the younger generation and their seniors in terms of financial goals and status.

The survey found that 74% of Singaporeans aged 25 to 29 are more confident they will achieve their financial goals, although the same group has set their sights on “enjoying overseas vacations” and “maintaining current lifestyle” over conventional ones.

Retirement plans are not included in their top three goals.

The survey polled 1,038 Singaporeans aged 25 to 60 years old earlier this year.

Singapore in March raised the retirement age to 64 from 63 previously.