Rise of the ‘Mini-Retirement’ Trend in Singapore

In a bold shift towards work-life balance, affluent Singaporeans are increasingly embracing the 'mini-retirement' trend, as unveiled by HSBC's latest report. Nearly 50% of those surveyed expressed plans to take multiple career breaks, outpacing the global average!

What is a Mini-Retirement?

Defined as a purposeful pause in one’s career lasting anywhere from a few months to a couple of years, a mini-retirement allows individuals to focus on personal passions, well-being, and quality time with loved ones. The typical break lasts between six to twelve months.

Confidence Gap in Planning

Despite the strong desire among the 701 affluent Singaporeans polled, a significant confidence gap exists: only 62% feel prepared to manage the logistics of their mini-retirements and reintegrate into the workforce afterward. This is notably lower than the 74% confidence rate seen globally. HSBC emphasizes the importance of proactive wealth planning to bridge this gap.

Funding the Dream

When it comes to financing these breaks, over half of Singaporeans plan to depend on investment income and personal savings—a promising contrast to the global trend where less than half rely on these financial sources.

Retirement Goals Differ

Insight from a previous HSBC report indicated that affluent Singaporeans aim for an average of US$1.39 million for a comfortable retirement, surpassing the global average of $1.05 million. This reflects the unique financial aspirations of Singapore's well-off demographic.

Singaporeans: What Drives Their Breaks?

Interestingly, 49% of Singaporeans are eager to take mini-retirements, slightly ahead of the 45% global figure. The primary motivations behind these breaks center around unrestricted travel and cherishing family time, cited by nearly 40% of respondents. In contrast, about one-third globally identified these as their key motivators.

Well-being Takes Priority

Physical, mental, and emotional health are also paramount, with 36% of Singaporeans acknowledging these as top priorities during their breaks, surpassing the 31% global average.

Unique Financial Strategies

Remarkably, 52% of Singaporeans plan to fund their mini-retirements through dividends, interest, or capital gains, notably higher than the 45% global average. Additionally, personal savings (56%) and pension funds (37%) are cited more often than their global counterparts.

Planning for a Smooth Transition

With aspirations for multiple mini-retirements, Singaporeans are also mindful of the necessary planning. Nearly 50% acknowledged the importance of financial security, while over a third mentioned family obligations and the challenges of re-entering the job market as critical considerations.

Travel Plans on the Horizon

When it comes to destination dreams, nearly one-third of those looking to travel during their mini-retirements plan to head to Malaysia, with a quarter eyeing Australia and Japan as enticing options.