The number of “retiree households” increased from 54,000 in 2008 to 95,000 in 2016, a 76% increase over 8 years.
The size of this group will only increase further: in the 10-year period from 2017 to 2026, about 558,000 Singaporean baby boomers will cross into retirement age of 60 (based on Department of Statistics’ definition in tabulating household incomes).
In contrast, only 461,000 young Singaporeans will “graduate” past the average first-time home-buying age of 25. Whilst we agree that there will be new home sales and new family formation, we have to be mindful that many retirees also need to cash out of their homes for retirement.
Further, we need to note that the total number of deaths due to old age will increase over the next 15 years as the 1 million baby boomers (who are between 51–69 years of age today) approach the median life expectancy of about 85 years.
