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Retirement
Forget it!
The way world economies are plunging is making retirement in Singapore an impossible dream. By Seah Chiang Nee
Jan 25, 2009
When the government recently proposed extending the retirement age from 62 to 65 - and even beyond - Singaporeans reacted negatively.
But this is one issue I can reluctantly agree with, whether I like it or not, because of the fundamental, perhaps permanent, changes in the world economy.
In other words, the traditional concept of workers retiring at 62 or 65 to play with grandchildren may be becoming impossible in matured economies - especially Singapore with its open economy that's dependent on others.
I wish a permanent recovery will prove me wrong since at 69, and without large savings (like many Singaporeans), I am one of those most adversely affected.
The current economic collapse has resulted in a huge shrinking of Singapore – of its economy, people's savings and future prospects – that have wiped out our achievements in the past one or two decades.
When it blows over as it must one day, the world economy will be very different entity – and so will Singapore.
Singaporeans – and the government - will have to forget about our ambition of fast growth and go back to basics of working hard for a living. No more "one-step-to-Heaven" type of investments to get rich.
For years, Temasek and GIC (Government Investment Corporation) have invested many billions to get a fatter returns.
This fast money attitude has also been prevalent among many Singaporeans, who have been relying on investments on “safe” stocks and properties to for a means of survival or accumulating wealth without labour.
Just sit at home and collect dividends or sell at a fast premium! Well, this road will now be unsafe for a long time to come.
The people will have to go back fundamentals of our forefathers of working hard for our living. There will be no “safe” investments to take the place of working for a living.
Retirement
The next lession in these troubled times, we are learning, is the current erosion of our dream that we can retire at 62 or 65 to enjoy life with our grandchildren.
That will, of course, still be possible for those who can afford it. But for the rest of the others, it is fast become a pipe dream and people will have to go on wroking until their health gives up on them - like Americans.
I was moved to write this after reading a recent article by Chris Farrell, in The Business Week, in which he said: “There is a major social and cultural message in the current economic collapse for the future retirees of America: Forget retirement.
“That's right. The recession is making clear what we've suspected for a long time.
“The concept of not working and embracing leisure for the last third of one's life isn't practical for most people.”
Many of the economic and social trends in America, sooner or later, generally flow into Singapore.
From the Singapore government’s action putting off retirement, this issue is no exception.
Unlike Asians, the Americans are straight talkers, who say things harshly even if they hurt.
He added: “Put it this way: Survey after survey has shown that a majority of aging baby boomers plan on working in retirement. Well, that plan is coming true.”
Since Littlespeck.com centres on reporting trends I thought people will do well to be aware of this trend – considering Singapore is one of the most expensive countries in Asia (next to Japan) to retire in.
The way to avoid this is, of course, to ensure you have at least half a million dollars cash if you want early retirement – an impossible task for most wage earners.
Forget it!
The way world economies are plunging is making retirement in Singapore an impossible dream. By Seah Chiang Nee
Jan 25, 2009
When the government recently proposed extending the retirement age from 62 to 65 - and even beyond - Singaporeans reacted negatively.
But this is one issue I can reluctantly agree with, whether I like it or not, because of the fundamental, perhaps permanent, changes in the world economy.
In other words, the traditional concept of workers retiring at 62 or 65 to play with grandchildren may be becoming impossible in matured economies - especially Singapore with its open economy that's dependent on others.
I wish a permanent recovery will prove me wrong since at 69, and without large savings (like many Singaporeans), I am one of those most adversely affected.
The current economic collapse has resulted in a huge shrinking of Singapore – of its economy, people's savings and future prospects – that have wiped out our achievements in the past one or two decades.
When it blows over as it must one day, the world economy will be very different entity – and so will Singapore.
Singaporeans – and the government - will have to forget about our ambition of fast growth and go back to basics of working hard for a living. No more "one-step-to-Heaven" type of investments to get rich.
For years, Temasek and GIC (Government Investment Corporation) have invested many billions to get a fatter returns.
This fast money attitude has also been prevalent among many Singaporeans, who have been relying on investments on “safe” stocks and properties to for a means of survival or accumulating wealth without labour.
Just sit at home and collect dividends or sell at a fast premium! Well, this road will now be unsafe for a long time to come.
The people will have to go back fundamentals of our forefathers of working hard for our living. There will be no “safe” investments to take the place of working for a living.
Retirement
The next lession in these troubled times, we are learning, is the current erosion of our dream that we can retire at 62 or 65 to enjoy life with our grandchildren.
That will, of course, still be possible for those who can afford it. But for the rest of the others, it is fast become a pipe dream and people will have to go on wroking until their health gives up on them - like Americans.
I was moved to write this after reading a recent article by Chris Farrell, in The Business Week, in which he said: “There is a major social and cultural message in the current economic collapse for the future retirees of America: Forget retirement.
“That's right. The recession is making clear what we've suspected for a long time.
“The concept of not working and embracing leisure for the last third of one's life isn't practical for most people.”
Many of the economic and social trends in America, sooner or later, generally flow into Singapore.
From the Singapore government’s action putting off retirement, this issue is no exception.
Unlike Asians, the Americans are straight talkers, who say things harshly even if they hurt.
He added: “Put it this way: Survey after survey has shown that a majority of aging baby boomers plan on working in retirement. Well, that plan is coming true.”
Since Littlespeck.com centres on reporting trends I thought people will do well to be aware of this trend – considering Singapore is one of the most expensive countries in Asia (next to Japan) to retire in.
The way to avoid this is, of course, to ensure you have at least half a million dollars cash if you want early retirement – an impossible task for most wage earners.
