Singaporeans plan to delay retirement as financial pressures mount

A growing majority of Singaporeans expect to work longer than planned, as financial pressures reshape retirement expectations, even among high-income earners, according to new research from Sun Life.

The survey found that 73% of Singaporeans anticipate continuing to work beyond the official retirement age, signalling a significant shift in how the workforce is approaching later-life employment. The trend is even more pronounced among affluent respondents, with 80% of high-income earners expecting to delay retirement.

Purpose and income both driving decisions

For wealthier workers, the motivation is not purely financial. The report shows that high-income respondents cited mental stimulation (62%), maintaining social connections (52%), and purpose and fulfillment (52%) as the leading reasons to remain employed.

However, financial realities remain a major factor across income groups. Nearly 48% of Singaporeans said they intend to work longer to maintain income for daily expenses and long-term financial security. 

Even among high-income non-retirees, 49% pointed to uncertainty about future expenses as a key barrier to retirement planning, while an overwhelming 92% expressed concern about inflation and broader economic uncertainty.

Christopher Albrecht, CEO of Sun Life Singapore, said the findings highlight a widening divide in retirement readiness. “For those who are prepared, working longer can be a choice that offers flexibility and freedom. For others, it reflects financial pressure. Planning early and planning holistically is what determines which path people are on,” he said.

Policy shifts reflect longer working lives

Singapore’s minimum retirement age currently stands at 63, with employers prohibited from forcing retirement before that threshold. The government plans to raise the retirement age to 64 in July, with a longer-term target of 65 by 2030, according to the Ministry of Manpower.

Authorities say the move aims to support older workers who wish to remain employed while expanding the available labour pool for businesses.

Public sentiment appears aligned with that direction. The survey found that 97% of Singaporeans believe retirement should be a personal choice rather than a mandatory age limit.

Health remains a decisive factor

Despite intentions to work longer, health continues to shape retirement outcomes. About 55% of respondents said their views on retirement shifted due to mental health considerations, while 48% cited physical health. Notably, 27% reported retiring earlier than expected because of poor health.

Albrecht warned that longevity without sufficient planning could leave many workers financially vulnerable.

“People are living longer, yet too many remain unsure whether they can afford to retire comfortably in Singapore,” he said.

He added that while generative AI tools are increasingly being used for self-directed retirement planning, professional guidance remains critical.

“AI can be a helpful starting point, but it often lacks the nuance and personalisation needed for long-term financial security. As technology reshapes how people plan for retirement, expert advice remains essential to ensure decisions are informed, balanced, and aligned with individual goals.”

The findings reflect a broader regional shift, with working beyond age 65 increasingly becoming the norm in Singapore. For many employees, however, the move is driven as much by financial necessity as by personal choice. 

Singapore's Manpower Ministry is also moving to progressively raise the retirement age to 66 and is encouraging employers to support older workers through part-time roles, age-inclusive workplaces, flexible job options, and stronger health and wellbeing programmes.