Young Singaporeans Adapt Savings and Investment Habits in Response to Economic Challenges, Reveals Etiqa Insurance Singapore Financial Fitness Survey 2023
In a rapidly shifting economic environment, an astounding 89% of Gen Zs and Millennials acknowledge altering their savings and investment strategies, a recent survey by Etiqa Insurance Singapore unveils. Additionally, concerns loom over the financial horizon, with 48% expressing apprehension about their capacity to cope with surging living costs and inflation rates. The Etiqa Insurance Singapore Financial Fitness Survey 2023 casts a spotlight on the financial anxieties of young Singaporeans, as they grapple with their ability to manage personal finances effectively.
Economic Turbulence Sparks Financial Revamp
The economic landscape of Singapore has encountered substantial upheaval over the past three years, exacerbated by inflation rates soaring to a staggering 4.8%. Skyrocketing living expenses combined with a volatile job market have left an indelible mark on the younger demographic. The city-state’s position as one of the world’s most expensive cities only amplifies the financial strain faced by young adults.
Raymond Ong, CEO of Etiqa Insurance Singapore, underlines the direct impact of these challenges: “The escalating cost of living has placed formidable financial constraints on young Singaporeans, triggering a reevaluation of their financial priorities and approaches to saving and investing.” Ong further emphasized the need for accessible financial planning solutions that can guide the younger generation through the intricate financial landscape and empower them to secure a stable financial future.
Unveiling the Financial Concerns
The survey’s key findings spotlight the pervasive concerns shared by Gen Zs and Millennials:
1. Lingering Financial Apprehensions
A considerable 44% of Gen Zs and Millennials harbor trepidation about inadequate emergency savings and other financial milestones. Furthermore, 31% of respondents from this demographic express fears about potential job loss or sudden income reduction, underlining the precariousness of their financial security.
2. Debt Dynamics
While an encouraging 48% of Gen Zs commence their financial journey without debt, nearly half of this demographic (45%) have escalated their spending habits. Alarmingly, almost 50% of these young adults have yet to take proactive measures to rein in their expenses, thereby postponing their long-term financial aspirations.
3. Navigating the Savings Maze
Of the surveyed group, an impressive 41% of Gen Zs and Millennials manage to set aside savings each month. Gen Zs notably outpace their Millennial counterparts, with 24% of their monthly income directed towards bank deposits and fixed deposits, alongside 13% allocated for investments. In contrast, Millennials allocate 21% towards savings and 15% towards investments. Among those unable to save, the exorbitant cost of living ranks as the predominant deterrent.
4. Aspirational Goals Drive Savings
Top mid-term financial objectives among Gen Zs and Millennials encompass travel, investment endeavors, and property acquisition. A noteworthy 39% of respondents aspire to own property within the next five years, while 16% set their sights on acquiring a car. Achieving these high-ticket purchases underscores the urgency of meticulous financial planning.
5. Confidence Deficit in Investment
The survey underscores the stark lack of confidence in investment ventures (55%) and emergency fund establishment (44%) among younger Singaporeans. This deficiency in investment assurance likely arises from disparities in financial literacy. An alarming one-quarter of respondents refrain from investing, with 44% citing a lack of knowledge regarding the starting point.
Etiqa Insurance Singapore Steps In
Etiqa Insurance Singapore’s unwavering commitment to bolstering financial literacy among Gen Zs and Millennials manifests in their upcoming initiatives. The company will roll out a comprehensive content series aimed at aiding individuals in defining their financial objectives, pinpointing protection gaps, and refining financial management skills. As these young Singaporeans aspire towards a financially secure future, Etiqa’s efforts seek to equip them with the tools to navigate the complex financial terrain confidently.