Almost a third the people in Singapore will be over 65 years old by 2050. (Yahoo! file photo)
A “silver tsunami” lies in Singapore’s future, as almost a third the people in the city-state will be over 65 years old in a few decades.
According to a report by the Economist Intelligence Unit (EIU) commissioned by Manulife Asset Management, the pensioner population in most countries in the Association of Southeast Asian Nations (ASEAN) will triple in less than 40 years.
Entitled “Saving up: The changing shape of retirement funding in a greying ASEAN”, the report revealed that the ageing phenomenon is worst in Singapore. Almost 32 per cent of residents will be over 65 years old in 2050, as compared to 9 per cent in 2010. It will be by far the highest percentage among member nations.
As a result of the ageing population, there would be a considerable strain on retirement funding, according to the report.
It forecast that by 2050, dependency ratios would increase almost five-fold. Every 100 workers will support 58 pensioners, as compared to just 12 pensioners in 2010.
In addition, less than half of Singaporeans have signed up for a pension scheme currently, hinting at a future where significant numbers of people may enter old age with little financial support.
This highlights the pressing need for an alternative savings mechanism to help people better prepare for their retirement with additional financial schemes, according to EIU.
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