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Wealth
Savings & Retirement

Singaporeans Face Working Longer to Afford Retirement

Pension savings are dwindling as inflation runs near decade-high, putting savers at risk as costs surge in the city.

Singaporeans’ long-term saving plans are being jeopardized by inflation hovering near the highest level in more than a decade.

Singaporeans’ long-term saving plans are being jeopardized by inflation hovering near the highest level in more than a decade.

Photographer: Ore Huiying/Bloomberg
By
Natalie Choy

Singapore’s boom from money pouring in from mainland China and Hong Kong expats relocating to the financial hub masks a tough economic reality for many locals: A comfortable retirement is getting harder to achieve.

Singaporeans’ long-term saving plans are being jeopardized by inflation hovering near the highest level in more than a decade, insufficient wage growth, accelerating housing costs and other financial burdens from living in a city recently listed as the world’s most expensive alongside New York. In addition, a reluctance by many to put money in riskier, higher-yielding investments means nest eggs are falling short.