Start early on our retirement nest egg

The survey result that nearly one-third of Singaporeans over the age of 55 have not begun saving for retirement is alarming. (“44% of Singaporeans have not started saving for retirement: Survey”; Channel NewsAsia, Oct 13)

So, what can be done when a Singaporean at age 55 has little savings for retirement and is expected to live another 30 years? One solution is to continue working for as long as he can, to cover daily expenses.

He should also start saving now. It would have to be a forced-savings type, in which a fixed amount is set aside solely for his retirement. This is possible if he is healthy and employable.

Another solution would be to downsize his property to get cash to cover his basic living needs, which is possible only if he has a property.

The last resort would be to rely on charity or government handouts, if he is eligible, during his old age. This is strongly discouraged, however, as everybody should be responsible for his or her retirement.

No one wants to realise, upon reaching age 55, that he has little savings for retirement, so let us start saving now.

If discipline is lacking, one can go to a bank that allows for a preset, automatic transfer of a fixed monthly amount from one’s salary-credited account to another that is intended purely for retirement. Over the years, the money would grow into a tidy nest egg.