SINGAPORE — Rising cost of living, dealing with financial emergencies, and sudden job losses rank among top financial concerns for Singapore's Gen Zs (18 to 20 year olds) and Millennials (27 to 42 year olds), a recent survey showed.
The Etiqa Insurance Singapore Financial Fitness Survey 2023, released on Wednesday (16 August), found that 48 per cent of these young adults are concerned that they will be unable to keep up with rising cost of living and inflation. In particular, 44 per cent of Gen Zs and Millennials are concerned about not having enough savings for emergencies and other financial goals.
As much as 89 per cent of respondents say the current economic environment has changed their savings or investment habits, while 31 per cent of them worry about losing their jobs or experiencing a sudden drop in income.
These findings underline young Singaporeans' concerns regarding their financial fitness – defined as the ability to meet current and long-term needs by having the necessary knowledge, skills, and habits to effectively manage personal finances.
Singapore is now the most expensive city in the world. The survey was conducted by Etiqa in collaboration with Kantar in May 2023 and surveyed 1,024 individuals across the Gen Z and Millennial demographic.
Low investing confidence
The study also found that younger Singaporeans have low confidence in investing (55 per cent) and building emergency funds (44 per cent). Etiqa said that this lack of confidence may be, in part, due to financial literacy gaps.
However, 48 per cent of Gen Zs are debt-free, offering them a solid starting position to establish a successful financial fitness journey.
When it comes to savings, travelling, investing and buying property are the top three mid-term saving goals for Singapore's Gen Zs and Millennials. Some 39 per cent of Gen Zs and Millennials are saving to buy their own property in the next five years, and 16 per cent are looking to buy a car, the survey showed.