1 in 4 Gen Zs in Singapore do not save, invest or insure enough, says bank poll

[Shiori]

1 in 4 Gen Zs in Singapore do not save, invest or insure enough, says bank poll


https://www.straitstimes.com/business/banking/1-in-4-gen-zs-in-singapore-do-not-save-invest-or-insure-enough-says-bank-poll


SINGAPORE - Singapore consumers may be more upbeat about the nation's economy compared with a year ago, but a quarter of Gen Zs polled here are financially unprepared, a bank survey of 1,000 people found.


More than one in four respondents aged 18 to 25 do not have enough rainy day savings, life insurance coverage or investments, nor do they make other essential financial plans, UOB said on Aug 19.


A basic financial planning guide by the industry and the Monetary Authority of Singapore said it is good practice to have three to six months' worth of expenses as emergency funds.


The guide also suggested that consumers get insurance coverage for death, total permanent disability and critical illness; invest at least 10 per cent of their take-home pay; and make wills and CPF (Central Provident Fund) nominations.


UOB's Asean Consumer Sentiment Study 2024 said Gen Zs, or those aged 18 to 25, are the most unprepared out of all the age groups surveyed. About 26 per cent of this group said they did not meet any of the four suggestions in the guide.


The study noted that while Gen Zs are relatively new to the workforce and might be struggling with big-ticket expenses such as marriage and housing, their lack of adequate financial buffers is worrying.


Across age groups, only 10 per cent of respondents met at least three of the suggestions in the guide, 37 per cent met two, 35 per cent met only one and 18 per cent did not hit any of the recommendations.


The study found that 60 per cent of those polled have at least three months' worth of expenses saved, with the Baby Boomers (aged 58 to 65) most prepared, and Gen X (aged 42 to 57) the least prepared.


It stated that Gen Zs had the least insurance coverage compared to other groups.


In terms of investing, those aged 18 to 41 were the most diligent.


As for legacy planning, half of those polled said they have made a CPF nomination, while 19 per cent said they made wills.


The survey roped in 5,000 participants aged 18 to 65 from Indonesia, Malaysia, Singapore, Thailand and Vietnam. It was conducted online by Boston Consulting Group over three weeks from mid-May 2024.


Participants from Singapore were the most upbeat about the domestic economy, compared with their Asean peers. Singapore was 14 percentage points higher than the regional average.


About 68 per cent of Singapore respondents felt positive about Singapore's economy, up 20 percentage points from 2023.


The study also found that Singapore consumers were more confident in their financial outlook, with 78 per cent expecting to fare as well or better in the next year. This is an increase of eight percentage points from last year.


The study said the younger Gen Z and Gen Y (aged 26 to 41) groups were the most upbeat, while Baby Boomers were the most subdued.


The study attributed part of the optimism to support measures introduced in the Singapore Budget 2024, including the additional tranches of CDC vouchers for households, the 50 per cent personal income tax rebate for the year, as well as various schemes to provide help to the low to middle income households against rising costs.


"On a broader level, easing inflationary pressures from the highs of late-2022, coupled with the strong Singapore dollar which preserved the purchasing power of local consumers while keeping a lid on imported inflation, also gave Singapore an edge over its regional peers," the poll said.


It also found that the greatest increase in expenditure from the year-ago period for consumers in Singapore was utility bills, followed by daily commutes and children's education, as well as household groceries.


"That said, there was a sharp drop in the number of consumers who increased spending for utility bills and household groceries, with the former falling six percentage points and the latter dropping seven," the study said.


Singapore consumers were also outspending their regional peers on experiential categories such as travelling for holidays, fine dining, concerts, events and festivals, with 43 per cent saying they had more spending on such items in the past year compared with the regional average of 35 per cent.


Across the region, a stubborn inflation remains a key concern, followed by higher household expenses, and a decline in savings and wealth holdings.

[Philipkee]

Ai ya.  Banks keep callling me to invest also.  Sian

[stillgottheblues]

Don't worry we have vouchers from the government hahahaha....

[Banned User]

Yolo