Don’t take eye off retirement planning

It is worrying that retirement planning has taken a back seat as inflation makes things more expensive and working adults prioritise debt repayments amid high interest rates. This is so according to a new study. OCBC uses the study to compile a Financial Wellness Index, which has fallen for the second straight year, and now sits at 60, the lowest score since its inception in 2019. Survey respondents said that rising inflation, high interest rates and growing fears of an economic slowdown have made them more cautious about spending and taking on debt. That is welcome because uncertain times surely must enforce a higher degree of financial discipline on people than what better times do.

However, what is problematic is the financial hierarchy of lifestyle needs revealed in the OCBC poll of 2,000 working adults, who are Singapore citizens and permanent residents aged between 21 and 65. Respondents were assessed on 10 pillars of financial wellness that include saving habits, spending beyond their means, protection from financial emergencies, plans for retirement, and speculation for quick gains. The 2023 study found that retirement planning performed the worst.