A unique survey by Manulife Singapore that focuses on both wealth and health has found that those who actively save and invest for their retirement also take extra care to watch their weight and general well-being because they know that serious illnesses in old age will set them back financially.
While many financial institutions have in recent years also emphasised the importance of personal well-being in retirement planning, the Manulife Asia Care survey has taken a deep dive to uncover how far some 1,000 Singapore consumers would go to stay healthy for as long as possible.
For instance, the survey found more than half of them would watch their weight diligently as this was the simplest health check everyone could do daily. To achieve their target, these weight watchers would ensure their food contained less salt, sugar and saturated fat.
Other than weighing scales, 44 per cent of them were likely to own battery-operated gadgets that allowed them to monitor their blood pressure and heart rate at home.
When these people went for their regular health screening, the result they usually paid attention to first was their cholesterol level, as this would determine whether they could reward themselves with a rare feast or be stuck on a strict diet for the next few months.
There is still room for improvement though – all of us should try to have a more balanced diet so we do not end up compromising on nutrition by always consuming only certain classes of food.
With more focus on mental well-being nowadays, especially in the workplace, about 43 per cent of surveyed workers here were more conscious of having a better work-life balance.
Some 10 per cent of the poll participants also said they were seeing therapists – a positive sign that seeking help for mental issues is no longer taboo here.
The young watch their health and wealth
It is heartening to note that about 68 per cent of those aged 25 to 34 put more effort into exercising and watching their diet because they know such good habits would enable them to stay healthy longer in old age. As a comparison, barely half of those in the 45 to 54 age group put in a similar effort to live healthier.
As there is much chatter among young people on topics such as financial freedom on social media, it is not surprising that about 90 per cent of them are aware that having sufficient savings is key to mental and physical well-being, especially when they are older.
About 40 per cent of them strive to focus more on their health when they are younger so that they can live life with dignity, and without chronic illnesses or disabilities, for the greater part of their lives.
When asked about the prospect of living longer due to better healthcare, most of those polled said they would value being physically, mentally and financially healthy in their later years than just extending their life span.
“Some also expressed concerns about physical and cognitive decline, further motivating their aspiration to live vibrantly,” the survey noted.
About 24 per cent of those surveyed put staying physically, mentally and socially active as their top retirement wish.
Roughly the same number of people also hoped to accumulate a sufficient nest egg so they could be self-sufficient without having to rely on help from relatives or the Government.
Many don’t plan for mishaps
Many workers, especially the younger ones, do not have health and life insurance coverage, presumably because they think they are adequately covered by their employers’ group insurance policies.
After all, when they seek treatment for their ailments, they can claim for the bulk of such expenses.
As a result, 65 per cent of them do not have critical illness insurance and even more – 85 per cent – are not covered should they become disabled.
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They probably do not realise their employers’ group policies will not take care of them in such cases because the protection here is not about the treatment of the ailments but more on providing emergency income should they become too unwell to work.
Similarly, about 60 per cent of those who do not have any life policies should realise the purpose of such coverage is not meant to benefit them personally but more to ensure their loved ones are taken care of when they are no longer around.
Ironically, even those who do not have health or life policies are likely to buy travel insurance just in case mishaps happen during their holidays overseas. This raises the question: Without any insurance coverage, are they financially able to take care of themselves and their families if mishaps happen in Singapore?
Critical to plan for own needs
It is paramount for each generation to make financial plans for themselves because failing to do so will exact a heavy price on themselves as well as the next generation.
This is especially true for the “sandwiched generation” as they have to take care of their parents and their children.
The Manulife survey found the burden of caregiving might cause many people here to have inadequate funds for their own retirement after they use their savings to care for their parents.
About 65 per of the poll participants had to support their parents, with more than half of them paying for the bulk of their parents’ expenses.
To do so, many of them said they had to either dip into their savings or try to earn more income by working for as long as they can.
If there is a lesson be learnt from the cautionary tale of the financial hardship of caregivers, it is that every generation should strive to take care of their own needs first before they think about leaving something for their beneficiaries.
For instance, many parents hesitate to top up their Retirement Account to enjoy more payouts from CPF Life because they mistakenly believe the money there would be wasted if they die early.
In doing so, they end up not having enough to spend on themselves, which means their children have to bear the extra burden of supporting them.
The reality is Central Provident Fund members’ savings will never go to waste because the unpaid portion of CPF Life plus the balances in the other accounts will all go to their nominated beneficiaries when they die.
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If you truly love your children, show it by being adequately prepared for your own retirement needs, so they do not have to live with the guilt of not having enough to support you through old age.
This is all the more crucial as many people now lead healthy lifestyles so they can live longer.
If everyone is living longer, it pays to plan for decent and lifelong retirement income, such as that from CPF Life, which can pay up to $3,300 per month, so that you never have to worry about paying your own bills in old age.
Check out Invest editor Tan Ooi Boon’s new book – Retire With More Money – at stbooks.sg
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