Retirement readiness: Purposeful aspirations outpace preparation

Retirement in Singapore is no longer seen as a retreat from working life. Increasingly, it is being redefined as a new chapter of purpose, reinvention, and contribution. The eighth edition of the AIA Live Better Study highlights this shift, showing that Singaporeans are embracing the idea of an active retirement aligned with the government’s emphasis on active ageing. At the same time, the study reveals a striking gap between aspirations and readiness, raising critical questions for employers about how to better prepare their people for the future.

The study, conducted in May 2025, tracked wellness across financial, physical, mental, social, and spiritual dimensions. It found a slight dip in holistic wellness compared to last year, underscoring persistent challenges for Singapore residents. Nearly half of respondents remain uncertain about achieving their desired lifestyles in retirement, despite increasingly viewing this stage as an opportunity for growth rather than withdrawal.

“Employees today are not only planning for their careers but also for the lives they hope to lead beyond them. Our findings highlight the need for greater support in financial readiness, physical well-being, and, importantly, social connection. These are critical areas where employers can make a meaningful difference, particularly as retirement expectations evolve,” said Irma Hadikusuma, chief marketing and healthcare officer, AIA Singapore.

The research points to a clear trend: many Singaporeans expect to continue working after retirement, but often for reasons beyond financial necessity. A significant proportion are motivated by the pursuit of purpose, the desire to stay engaged, or the chance to try something new. For employers, this signals an opportunity to rethink how careers and transitions are structured, ensuring employees remain equipped with the skills, health, and confidence to thrive in later stages of life.

Financial and physical wellness remain central concerns. Only half of Singaporeans consider themselves financially stable, with those in their forties reporting the most negative outlook on retirement. Rising costs of living and healthcare remain key anxieties. At the same time, physical health is seen as the single most important factor for a fulfilling retirement, though many anticipate spending considerable time managing health conditions. Employers have a pivotal role to play in this space, from financial literacy and retirement planning programmes to workplace wellness initiatives that help employees build sustainable habits long before retirement age.

Perhaps the most overlooked dimension is social well-being. The study found that family ties and friendships are critical anchors for happiness in retirement, yet only two in five Singaporeans have given active thought to how they will maintain social connections. For HR leaders, this underscores the importance of fostering inclusive and connected workplaces, encouraging community engagement, and helping employees build support networks that extend beyond the workplace.

The findings also shine a light on vulnerable groups. Single employees and those aged 40–49 emerged as the least optimistic, facing heightened financial anxieties and a lack of caregiving arrangements. This makes targeted interventions, such as flexible work arrangements, healthcare planning, and tailored benefits, particularly relevant for HR leaders seeking to address diverse workforce needs.

As Singapore continues to invest in social infrastructure and active ageing initiatives, the study underscores the shared responsibility between individuals, employers, and the wider community in preparing for the future. For organisations, the message is clear: supporting employees’ retirement readiness is not only a matter of benefits and policies but also of culture. By integrating financial wellness, health initiatives, and social connection into the employee experience, employers can empower their people to look to the future with greater confidence, resilience, and purpose.

HR Asia, Sep 2025