Nearly half of Gen Zs and millennials are worried that their salaries are inadequate against the backdrop of the higher cost of living and worsening inflation, a new study revealed.
Etiqa Insurance Singapore’s latest report showed that 48% of young adults in Singapore are concerned about making ends meet, while 89% have rethought their savings or investment habits to keep up with the current economic environment.
The findings underscore a general concern coming from Gen Z and millennials regarding their financial fitness, which Etiqa Singapore defined as the ability to meet current and long-term needs by having the necessary knowledge, skills, and habits to manage personal finances.
Financial fears plague nearly half of young adult Singaporeans, as 44% said that they are concerned about inadequate savings for emergencies and other financial goals. Thirty-one per cent also worry about job security or sudden drops in income.
The study also found that 48% of Gen Z and millennials in Singapore are debt-free, giving them a solid position in their financial fitness journey. That said, 45% also indicated that they have increased their spending, with one in two also saying that they have not taken steps to curb this habit.
Four in 10 of these young adults are able to save every month; Gen Zs are leading millennials in this category, with the former saving roughly a quarter of their monthly income into bank and fixed deposits and 13% on investments. Meanwhile, millennials save 21% in banks and 15% goes towards investments.
Travelling, investing, and property buying are listed as the top three mid-term saving goals for Gen Zs and millennials, with nearly four in 10 saying that they are saving to buy their own property in the next five years. 16%, on the other hand, are looking to buy a car with their savings.
Despite the generally good outlook on savings in investments by these young adults, more than half (55%) have low confidence in investing, while 44% indicated that they are daunted by building emergency funds. Etiqa Singapore attributed this lack of confidence in part to financial literacy gaps, as one in four do not invest, with 44% of this figure saying that they do not know where to start.
“With the rising cost of living, young Singaporeans are facing cost pressures that affect their financial priorities and attitudes, including how they would typically save or invest their money,” Etiqa Insurance Singapore CEO Raymond Ong said. “By offering simple and easily accessible financial planning solutions, we can guide young Singaporeans through today’s complex landscape, ensuring their ability to confidently attain a financially secure future.”
Another financial study by Singlife also revealed that only 29% of participants are confident they have achieved financial freedom even though a majority of consumers (73%) are aware of the importance of being financially free.
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