America vs. Singapore: You Can't Save Your Way Out of Economic Shocks
5 days ago
- #risk management
- #economic shocks
- #retirement savings
- Procrastination does not significantly predict saving regret; economic shocks are the dominant factor.
- About half of Americans aged 60-74 wish they had saved more, often due to economic shocks rather than procrastination.
- Singapore's Central Provident Fund mandates compulsory savings for retirement, housing, and healthcare, providing a buffer against shocks.
- The U.S. lacks robust institutional buffers, leading to more severe financial consequences from shocks like job loss or health crises.
- Probability numeracy (understanding risk) is strongly associated with lower saving regret, unlike financial literacy.
- Strengthening social insurance and risk management institutions could reduce saving regret more effectively than behavioral nudges.