Orient - The Official Magazine of the British Chamber of Commerce Singapore - Issue 72 June 2019
The Unforeseen Danger of Longevity
Changing expectations
Suggested responses to this growing issue include delaying the retirement age: in 1908 when the Old Age Pension was introduced, the retirement age was 70 – and this came down to 65 in 1925. Women’s retirement age was further reduced to 60 in 1940. These ages remained the norm for both public and private pension assumptions until demographic changes drove a review. Consequently in 2007 the law changed to raise the state pension age to 66 if retiring between April 2024 and April 2026, then to 67 if retiring between April 2034 and April 2036 and to 68 if retiring between April 2044 and April 2046.
More and more people are now opting to stay active for longer, either by working part-time or taking on less-demanding roles following retirement to supplement their income. The fact that we are healthier into our old age makes this a viable – and even beneficial – option, with research showing that an active old age increases quality of life significantly.
It is clear that there is no simple answer to the question of building a sufficient capital base to fund a longer retirement. Therefore fundamental changes are needed about how we view our retirement – and the measures we take to fund it.
About the Author Ashley Jones is a Senior Financial Planner at The Fry Group in Singapore. A UK-qualified financial planner with 12 years’ experience in the industry, he holds the Diploma in Regulated Financial Planning rom the Chartered Institute of Insurance. He is fully qualified and licensed as a Financial Adviser Representative by the Monetary Authority of Singapore. He has been Chairperson of the Financial Services and Fintech committee at the British Chamber of Commerce in Singapore since 2016 and writes articles on the latest themes and developments in the industry.
ABOUT THE COMPANY The Fry Group is an award-winning company, being ranked no.5 in the Financial Times’ top 100 Financial Advisers 2018. With offices throughout the UK, Belgium, Hong Kong, Singapore and Dubai, The Fry Group has been helping people make the most of their money trhoughout its 120-year history. The business has a proven performance of maximising wealth for clients in the UK and overseas, offering a holistic financial planning service guiding on investments, UK tax planning and mitigation, retirement planning and wills, trusts and estate planning. Find out more at www.thefrygroup.sg