According to the survey results, 64% of Singaporeans are worried about running out of retirement. This figure is the highest proportion across the Asia Pacific region. Additionally, nearly nine out of ten Singaporeans believe that they are responsible for their own retirement savings. However, less than three-quarters of the survey respondents have started saving.
Millennials on the other hand, are more aware of the need to save for retirement. According to the survey results, more than half of the surveyed millennials have starting saving for retirement.
However, despite the increased awareness and actions to save more, the rising cost of living and inflation continue to put stress on Singaporeans.
In Prime Minister Lee Hsien Loong’s recent National Day Rally speech, he mentioned that “lifestyle changes, such as the prevalence of smartphones, eating out and a higher quality of life in general” have contributed to upward pressure on the cost of living in Singapore.
With the perceived higher cost of living in Singapore, this can create unnecessary stress amongst the working population. They might worry that their current salaries might not be enough for them to save till their retirement. Additionally, one emergency at home could mean wiping out their entire savings. In short, the stress lies with insufficient cast.
One simple and quick solution is to provide employees with a higher raise. After all, increasing employees; salaries can help them cover expenses for emergencies at home, allow them to save money for a retirement or perhaps splurge a little more lavishly to relieve the stress at work.
However, the fact of the matter is that simply increasing employees’ salaries might not necessarily mean that they feel less stressed at work.
Instead, the trick is to encourage employees to save money for emergencies - by paying them to do so. This does not mean increasing your human capital cost. Instead, it could be part of a performance bonus scheme, whereby employees receive a certain amount of bonus if they are able to save X amount of their salaries into an emergency fund.
Encouraging employees to save for emergencies can help to relieve the burden from having to juggle work and personal issues. At the same time, it provides employees one less item to worry about, knowing that they will have some form of cash to fall back on in cases of rainy days.
Besides “forcing” employees to save for emergencies by providing incentives for them to do so, employers can also provider alternative measure for employees to relieve stress, for instance encouraging employees to take more personal time off, provision of on-site massage services or even encourage open communication for employees.
Your employees worrying about having insufficient savings is a common issue. However, if this worry is causing unnecessary stress on your employee, this could in turn result in lower morale at work and lower productivity levels. If there is any way to minimize this worry, employers should definitely look into incentivizing employees to save for their future.
This article was first published on Gpayroll. Information is correct at the time of publication.