The majority of Singaporeans remain unprepared for retirement, and up to a third see investing as a form of gambling, according to an inaugural study by OCBC.
The study, known as the Financial Wellness Index, polled 2,000 employed Singaporeans between the ages of 21 and 65 regarding their financial health.
It revealed that the ‘sandwich generation’, or those who financially support both their ageing parents and their own children, are among the most vulnerable segments and are significantly more worried about their finances.
OCBC identified 10 pillars of financial wellness in the survey – saving habits, protection from financial emergencies, regular investing, retirement planning, regular reviews, gambling habits, excessive speculation, borrowing money from loved ones, spending beyond means, and manageable debt.
Singapore scored 63 over 100 on the index, meaning that while Singaporeans have taken steps to take care of their financial health, they remain behind in some aspects. The basics include: saving regularly, having insurance and being able to stick to a budget. More than eight in 10 (82%) have taken out insurance for themselves or their family.
However, 75% of respondents have said that they are behind with their retirement plans, meaning that they have not saved enough to sustain themselves after their retirement.
“This year, we decided to do a comprehensive survey so that we can understand the financial health of every consumer segment better,” said Koh Ching Ching, OCBC bank’s head of group brand and communications. “We believe that this is the first and most comprehensive financial wellness survey ever conducted in Singapore that is built around these 10 pillars of financial health. We will conduct this index every year and aim for it to become the definitive benchmark of financial wellness in Singapore for years to come.”
