Why it's hard to start planning for retirement if you wait till 50

About a quarter of working adults here have the wrong idea that it is easy to plan for retirement because they intend to do so only when they are in their 50s or even older.

- Tan Ooi Boon

Some even told OCBC during its annual survey that they could plan later if they are "thrifty and save up".

Others felt it was tedious and hard to focus on retirement because they "did not want to think too far ahead" or they "still have time to start planning later".

Not surprisingly, the poll showed that barely half of working adults aged 21 to 65 have started saving or investing for their future. "Since the OCBC Financial Wellness Index was launched in 2019, retirement has consistently been one of the poorest performing indicators," the bank said.

Planning has to start early because most investment and retirement schemes are designed to grow funds over decades so that profits and compounded interest can be rolled over to earn more money.

For instance, young workers who contribute early to their Central Provident Fund accounts every month can stand to receive decent monthly payouts in old age because they have almost three decades to save for it.