Feelings of uncertainty post-retirement are pushing Singaporeans to instead choose semi-retirement to gain some sense of security, a recent study by HSBC shows.

Feelings of uncertainty post-retirement are pushing Singaporeans to instead choose semi-retirement to gain some sense of security, a recent study by HSBC shows.

In the research titled "Futures of Retirement Study: Life After Work?" HSBC found that 61 per cent of the Singaporean respondents plan to or are already in semi-retirement. Semi-retirement means a reduction in working hours while maintaining some paid employment as one approaches retirement age.

On the average, people in Singapore expect to semi-retire plan to do so three years at the age of 57 before fully retiring from all paid employment by age 60. Motivations vary but most are positive, with 57 per cent saying they want to stay active and keep their brains alert, 43 per cent saying that they do enjoy working and 41 per cent saying they need a smooth transition into full retirement. 

Only a minority, or one in five working people, say they will never be able to afford to retire fully in their lifetime. The situation becomes especially serious for those without partners, with 30 per cent of those who are divorced or separated saying they do not think they will ever be able to afford it. For others, semi-retirement is more a necessity than a choice, with 30 per cent expecting to have to do it because they cannot afford to retire full time and 23 per cent saying they will need to do so to bridge a shortfall in retirement income.

In addition, the impact of the global economic crisis, coupled with insufficient planning and lower inheritances are also affecting the drop in retirement income not just in Singapore but worldwide. In short, while income has declined, expenses linked with retirement remain high. Receiving an inheritance is also not common in Singapore, where majority of working people and half of retirees have never received a significant financial gift from family.

In Singapore, semi-retirement is not widely embraced as a lifestyle among retirees. Only 38 per cent had the option to do so, although it is notable that 81 per cent say they took the opportunity when it came up. Some retirees also continue to provide for their children, with 27 per cent still supporting financially. On the other hand, 36 per cent of the retirees polled say they are not financing anyone. 

"While most look forward to retirement as a time to relax and fulfill personal aspirations, the reality is that some have sacrificed this because of inadequate financial planning. It is important that people realise the need to start planning and saving early so that they will have no retirement regrets," said Harmander Mahal, head of customer value management for retail banking and wealth management at HSBC Singapore.

The latest study is the ninth in a series and is based on an online survey of 16,000 people in 15 countries.