Higher prices in commodities cause Singapore’s young adult population to worry: Survey

More than a quarter of Singaporean young adults worry about insufficient savings for emergencies and financial goals.

It was revealed that about 89% of Gen Zs and Millennials have altered their savings and investment habits due to the current economic environment, Etiqa Insurance Singapore Financial Fitness Survey 2023 revealed.

Additionally, 48% express concerns about keeping up with rising living costs and inflation. 

This survey highlights the financial worries of young Singaporeans in managing their personal finances effectively, a concept termed "financial fitness."

The uncertain economic climate has led to financial insecurity for young adults in Singapore. 

With the city-state now ranking as the world's most expensive city, increased living costs, inflation rates of up to 4.8%, and a volatile job market have contributed to their concerns.

More than a quarter (44%) of Gen Zs and Millennials worry about insufficient savings for emergencies and financial goals, while 31% fear job loss or sudden income drops.

Nearly half (48%) of Gen Zs begin their financial journey without debt, providing a solid foundation. However, 45% of them have raised their spending, potentially delaying long-term financial objectives.

ALSO READ: Here’s why other Gen Zs steer clear from metaverse

About 41% of Gen Zs and Millennials consistently save every month. Gen Zs lead, with 24% going into bank deposits, 13% into investments, while Millennials allocate 21% to bank deposits and 15% to investments. High living costs hinder those who don't save.

Property, travel, and investments are prominent mid-term savings targets for Gen Zs and Millennials. 39% aim to buy property in five years, and 16% aspire to own a car. Achieving these goals requires effective financial planning.

Younger Singaporeans display limited confidence in investing (55%) and building emergency funds (44%), possibly due to knowledge gaps. A quarter don't invest, with 44% citing uncertainty about where to start.

The Etiqa Insurance Singapore Financial Fitness Survey, conducted in collaboration with Kantar in May 2023, surveyed 1,024 Gen Zs (18-26 years old) and Millennials (27-42 years old).