Young Singaporeans want to retire early. How can they do it?

Mr Zainuddin Zahir works part-time as a rhythm cycling instructor to supplement his income and achieve his goal of retiring early. Mr Zainuddin Zahir, 32, moved out of his parents’ home almost two years ago to a rental apartment of his own.

“A lot of people would say that the experience of living independently is priceless – but very honestly, it is not,” says the digital marketer. “The price is the rent you pay every month.”

To meet his rental and other expenses, he has had to work part-time as a rhythm cycling instructor. What started out as a hobby has become an important aspect of his financial plans.

Mr Zainuddin pays for his monthly rent of $3,000 with income from his full-time job. The money from his part-time job, which makes up 20 per cent of his overall income, goes to daily expenses.

“Without this portion of my income, it would be difficult for me to accomplish my financial goals, such as saving for retirement and to buy a property of my own – and afford to rent my own place,” says Mr Zainuddin, who aims to retire by 55.

He is not alone. The latest OCBC Financial Wellness Index found that 71 per cent of Singaporeans have another source of income aside from their main job. Half of them have a “side hustle”, whether it’s selling items online, having a side business, or working in the gig economy.

The same goes for the young. Almost half (48 per cent) of those in their 20s, and 40 per cent of those in their 30s, have a side hustle.

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The difference lies in the reason: The young want to retire earlier.

The Index, released in August, polled over 2,000 working adults in Singapore between the ages of 21 and 65. Plan early to retire early

The Index reveals that Gen Zs in their 20s want to retire at 57, while millennials in their 30s want to do so at 58.

But about 62 per cent of those in their 20s and 30s worry about having enough for retirement.

The current official retirement and re-employment ages in Singapore are 63 and 68 respectively. These will be progressively increased to 65 and 70 by 2030.

“Taking on a side hustle points to how younger Singaporeans worry about not doing enough to build their wealth,” says Mr Aaron Chwee, OCBC Bank’s head of Wealth Advisory. They want to escape being chained to work and to pursue their passions, he adds.

“This has likely spurred them into action, with some investing aggressively and in riskier products to build their wealth quickly.”

The Index shows that Singaporeans’ return on investments took a hit, likely due to market turbulence and volatility. About 36 per cent made an overall loss on their investments – up 10 percentage points from last year.

But the future is not bleak. “Many young Singaporeans are excellent savers, are already planning for retirement and starting to invest.

“The drive that they have shown in hustling on the side also shows determination and the willingness to work hard, which stands them in good stead.”The drive that (young Singaporeans) have shown in hustling on the side shows determination and the willingness to work hard, which stands them in good stead.Ms Olivia Lim, 29, who works full-time as a marketing executive in the optical retail trade, is also juggling two jobs. In her free time, she makes her own ceramic pieces to sell online, and works part-time as a pottery studio assistant.“The money I earn from my passion projects makes up about 15 per cent of my overall salary, and I use it largely as disposable income,” she shares. In her free time, Ms Olivia Lim makes her own ceramic pieces to sell online. She also works part-time as a pottery studio assistant, on top of her full-time job as a marketing executive. PHOTO: COURTESY OF OLIVIA LIM Ms Lim has been saving regularly since she started working 10 years ago. But the money she saved has been sitting idle in her bank account.Earlier this year, she decided that it was time to start investing to achieve her goal of retiring by the age of 55.“I got in touch with a friend who works as a financial adviser, and he helped me create a plan that can help me grow my money,” she says.Making informed investment decisions is key to building financial wellness, says OCBC’s Mr […]

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