Singapore’s ageing population is facing growing retirement pressures. While many individuals choose to work beyond retirement age, a significant number – including those from the high-income bracket – are doing so out of financial necessity, highlighting a lack of retirement readiness and the urgent need for better long-term planning, a new survey by Sun Life finds.

The majority of Singapore respondents ( 73% ) expect to continue working beyond retirement age. This figure is more pronounced among the high-income respondents ( 80% ), according to the survey, Retirement Reimagined: Asia’s Retirement Divide.

For some, this reflects attitudes towards flexibility and wellbeing, as high-income respondents cite mental stimulation ( 62% ), maintaining social connections ( 52% ), and purpose and fulfillment ( 52% ) as reasons to stay in work. For others, it reflects a financial strain as nearly half of high-income respondents ( 48% ) say they need further income to support their daily living and long-term financial security.

“What we’re seeing is not a single retirement experience, but two very different realities. For those who are prepared, working longer can be a choice that offers flexibility and freedom. For others, it reflects financial pressure. Planning early, and planning holistically, is what determines which path people are on,” says Sun Life Singapore chief executive officer Christopher Albrecht.

Retirement optimism

Having financial security is at the heart of optimism about retirement. Among high-income non-retirees who say they are looking forward to their golden years, 50% cite financial security as a reason, followed by freedom and flexibility ( 33% ) and stability ( 26% ). 

However, rising cost pressures continue to bite and cause retirement stress. Nearly half of high-income respondents ( 49% ) cite uncertainty about future expenses as a barrier when it comes to retirement planning, while 42% voice  concerns about inflation or economic uncertainty.

Planning horizons remain short, with 22% of high-income respondents only drawing up plans within two years of leaving full-time work. Less than half ( 39% ) say they feel very confident in their retirement plans. 

Many working adults in Singapore face the additional financial strain of supporting elder relatives as well as young dependents. Caring for both older and younger family members has led many high-income respondents to downsize their lifestyle expectations ( 23% ) or postpone retirement ( 45% ).

Furthermore, 80% of high-income respondents expect to continue supporting their children or relatives in retirement, underlining the need for prudent financial planning that balances long-term needs, personal freedom, and family responsibilities.

Health matters

It’s not just about the money. Current health and future expectations also play a part in shaping people’s aspirations for retirement, with better health correlating with an optimistic outlook on later life. 

Of those who say their views on retirement have changed in recent years, the most cited reason is better-than-expected mental health ( 55% ) or physical health ( 48% ). Similarly, being in poor health negatively impacts retirement plans. Of those who say they retired earlier than expected, poor health ( 27% ) is a leading reason.

Singaporeans increasingly want the freedom to decide when to leave the workforce – almost all high-income respondents ( 97% ) believe that retirement should be a personal choice rather than a mandatory age.

“People are living longer, yet too many remain unsure whether they can afford to retire comfortably in Singapore,” says Christopher. “Amid rising costs of living, the role of insurance has become more critical than ever, allowing people to gain better control over their legacy and build a future where their retirement is shaped by possibility, not pressure.”