Business Times ran a story today on a study conducted by Manulife.
The study finds that the average Singaporean expects himself/herself to live for another 9 to 12 years in retirement. But the reality is that he/she can live for another 17 years based on actual statistics.
Due to this misguided expectation (or underestimation), the general population will likely have insufficient savings to last through retirement. They don’t plan to live so long!
The CEO of Manulife Darren Thomas said:
“To enjoy a comfortable retirement, one would easily need a steady stream of income for at least 20 years, and to be prudent, one should really be planning for 25 to 30 years since these are just averages.”
My take is that you should save as much as you can during your working years while leading a comfortable lifestyle. I know it’s easier said than done.