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Few Know How Much to Save for Retirement
The Start Online
Singapore
August 3, 2005
Engineer Jeremy Lee faithfully channels more than 20% of his salary into a savings account every month for that rainy day. But ask him how much money he needs for his retirement and he is clueless.
Lee, 37, is not alone. Singapore's first National Financial Literacy Survey found that many did not have a clear idea of how much they need for retirement or the amount of savings they need to set aside for a rainy day.
Nearly 90% of Singaporeans save, but very few are well versed on the key features of common financial products such as life insurance and unit trusts.
For instance, seven out of 10 did not know they do not get any money back when a term insurance plan ends.
And two out of three were unaware that they were entitled to pull out of a unit trust purchase within the seven-day cancellation period.
The survey, conducted in March among 2,023 Singaporeans aged between 18 and 60, is part of the MoneySENSE national financial education programme launched in October 2003.
Monetary Authority of Singapore deputy managing director for market conduct Shane Tregillis said: "The survey showed that Singaporeans generally have healthy attitudes towards the use of money.
"They are, however, less clear on specifics like the amount they need for retirement." - The Straits Times/ ANN
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