Help your clients become the worst parents in the world

| 13 Sep 2018

Recently, we've been seeing strong efforts from Singapore insurer NTUC Income in pushing conversations around retirement. Other than commissioning a research conducted by Nielsen, NTUC Income also launched a video clip titled "Worst parents in the world" which went viral. Here's why you should help your clients become the worst parents in the world.

Find the Youtube link here.       

Findings supported from Nielsen survey

The insurer published research findings on retirement and how youths perceived their parents’ retirements. The study surveyed not only youths (between 19 and 25 years old) but parents (between 30 and 55 years old), too.

Parents’ point of view: Willingness to sacrifice for kids

  • 7 out of 10 parents expect to outlive their savings

In the survey, 7 out of every 10 parents revealed that they expect to outlive their savings and would not have enough money to last through the end of their years. They also stated that they would “invest in their children financially so that the latter can have a better head-start and quality of life than theirs”, said Mr Marcus Chew, Income’s Chief Marketing Officer.

Parents prioritised their children’s future over theirs and would be willing to equip their children with academic enrichments in order for them to survive in today’s competitive environment.

Although they were most concerned about having insufficient savings to tide through medical expenses and retirement, 90% were still willing to give up their retirement savings (if any left) to spend on their children’s development needs when required to. The research revealed that parents set aside only about 35% of their intended amount ($1,146) monthly, although they perceived to require $3,314 monthly when they retire.

When asked about their retirement plans, parents were planning to give up their travel and holiday plans, while some were planning to downgrade their homes as well as reduce their daily expenses and indulgent spending.

Only 6% of parents were confident their savings or planning for retirement would sustain their current lifestyle when they retire.

Youths’ point of view: 7 out of 10 youths expect to make sacrifices to support their parents

  • Only 8 % were very confident of supporting their parents financially

When the cost of looking after their retired parents was factored in, only 8% of the youths surveyed were very confident of supporting them financially. 7 out of every 10 youths foresaw themselves making personal sacrifices to support their parents when the time comes.

The youths were also prepared to downgrade their lifestyles, make career-related sacrifices and even delay their marriage to help financially support their retired parents, as many expressed low confidence that their parents were retirement ready.

44% of youths cited they would indulge less in personal hobbies and interests, while 44% of youths would take up extra jobs or give up local/overseas job opportunities. Some 25% of youths considered pushing back marriage just so they may provide financial support if necessary.

Securing your own financial future is the best gift for your children

Parents must understand that their financial future plays a big part in their children’s future. “Based on the research findings, we have evidence that the inadequate retirement planning will have adverse implications on both parents and children. Eighty percent of the youths surveyed agreed that parents should save for their retirement and spend less on tuition and enrichment fees. This becomes a more pertinent point to consider when it is shared against the backdrop that 60% of the youths surveyed indicated that they were financially unprepared and would feel helpless if unforeseen circumstances were to happen to their parents,” said Mr Chew.

He added, "We have no doubt that by investing in children, parents are fostering a better future for them. However, parents also must recognise that securing their own financial future is as significant in empowering their children to be future-ready. In this regard, we believe that planning for retirement is one of the best gifts that parents can offer our children."

Source: NTUC Income

Download full infographics here.


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