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Why some people struggle to retire even after working for decades
14th September, 2026 12:05 PM
Spending decades at work can create the expectation that retirement will come with financial comfort. After years of receiving a salary, paying bills, and making pension contributions, it is easy to assume there will be enough money to live on once employment ends.
However, retirement can look very different from what many workers expect. Some people reach retirement age after 30 or 40 years of work only to find that their savings and pension income cannot comfortably cover their daily expenses.
The problem is not always how long a person has worked. What matters is how much was saved, how consistently it was saved, and whether the money can support the lifestyle and responsibilities that continue after employment.
A long career does not always mean enough savings
One of the biggest mistakes workers can make is assuming that many years of employment automatically translate into adequate retirement savings.
A person may have worked for decades but spent most of their income on housing, school fees, medical costs, family responsibilities, loans and other everyday expenses. By the time retirement approaches, there may be little left beyond mandatory pension contributions.
According to the Retirement Benefits Authority, only 38.9 per cent of active contributors believe they are saving enough for retirement, while just 32.2 per cent of pensioners say their retirement income meets their daily needs.
This shows why the number of years spent working alone cannot determine whether someone is financially prepared for retirement.
Family responsibilities can continue after retirement
Retirement does not necessarily mean financial responsibilities disappear.
Some retirees continue supporting children, grandchildren or other relatives. Others may still have school fees, rent, loans, medical bills or household expenses to deal with.
The Retirement Benefits Authority’s 2024 Pensioner Survey found that 83 per cent of retirees surveyed were supporting dependants, including adult children and grandchildren. The same survey also highlighted inadequate pension benefits and the rising cost of living as major challenges for retirees.
This can quickly put pressure on a pension that may already be smaller than the income earned during employment.
Inflation can reduce the value of retirement savings
Another challenge is the rising cost of living.
The amount that appears sufficient today may not provide the same level of comfort several years later. Food, housing, transport and healthcare costs can rise, meaning retirees need more money to maintain the same standard of living.
This is why retirement planning needs to look beyond simply accumulating a certain amount of money. Workers also need to consider how much they may need each month and whether their savings and investments can continue providing income over many years.
Changing jobs can also affect retirement plans
Workers who move from one employer to another may also lose track of their retirement savings.
When changing jobs, some people may withdraw part of their benefits instead of preserving or transferring them. This reduces the amount that could have remained invested and grown over time.
The Retirement Benefits Authority advises workers to preserve their retirement benefits when changing employment, either by transferring them to another registered scheme or deferring them until retirement.
Retirement planning should start before the final years
Waiting until retirement is close to start thinking about finances can leave a worker with limited options.
Starting early gives savings more time to grow and allows a person to make adjustments when contributions are too low. It also provides time to reduce debt, build other investments, and prepare for expenses such as healthcare.
A comfortable retirement is therefore less about how many years a person has spent working and more about what they do with those years financially.
The goal should not simply be to reach retirement age. It should be to reach it with enough income, savings, and financial support to maintain a reasonable quality of life after the monthly salary stops.
