49% of Gen Zs and Millennials worry that salaries are not keeping up with cost of living and inflation

• Rising cost of living, dealing with financial emergencies, and sudden job losses rank among top financial concerns for Gen Zs and Millennials
• Survey findings reflect a profound shift towards prioritising financial fitness for younger Singaporeans

Singapore, 16 August 2023 – 89% of Gen Zs and Millennials say the current economic environment has changed their savings or investment habits, while 48% are concerned that they will be unable to keep up with the rising costs of living and inflation, according to the Etiqa Insurance Singapore Financial Fitness Survey 2023 .

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.

Financial insecurity in an uncertain economic climate

Rising costs of living and inflation rates of up to 4.8% , along with a volatile job market, have affected young adults in Singapore in the last three years. The city-state now takes the number one spot among the world’s most expensive cities.

“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,” said Raymond Ong, CEO of Etiqa Insurance Singapore. “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.

Key findings include:

• Financial fears: 44% of Gen Zs and Millennials are concerned about not having enough savings for emergencies and other financial goals. 31% of these young adults worry about losing their jobs or experiencing a sudden drop in income.

• A debt-free starting point: 48% of Gen Zs are debt-free, offering them a solid starting position to establish a successful financial fitness journey. However, 45% of Gen Zs have increased their spending, which may delay achieving their long-term financial goals.

• Sprinting towards saving goals: 41% of Gen Zs and Millennials were able to put aside savings every month. Gen Zs lead the savings game over Millennials, funnelling 24% of their monthly income into bank deposits and fixed deposits and 13% into investments, while the latter save 21% and invest 15% of their monthly income. Those who do not save attributed it to the high cost of living as the top reason.

• Motivation for significant purchases and indulgences: Travelling, investing and buying property are the top 3 mid-term saving goals for Gen Zs and Millennials. 39% of Gen Zs and Millennials are saving to buy their own property in the next five years, and 16% are looking to buy a car. With the desire to obtain such expensive purchases, financial planning is crucial to achieving life’s goals.

• Lack of investment confidence: Younger Singaporeans have low confidence in investing (55%) and building emergency funds (44%). This lack of confidence may be, in part, due to financial literacy gaps. 1 in 4 respondents does not invest with almost half of them (44%) indicating that they do not know where to start investing.

Etiqa Insurance Singapore Financial Fitness Community Outreach

As part of Etiqa Insurance Singapore’s commitment to raising financial literacy among Gen Zs and Millennials, Etiqa will be rolling out a content series to share tips with individuals on setting their financial goals, identifying protection gaps and enhancing their financial management as they strive towards a more financially secure future.

Etiqa Insurance Singapore Financial Fitness Survey Methodology

Etiqa Insurance Singapore Financial Fitness Survey  was conducted by Etiqa Insurance Singapore in collaboration with Kantar in May 2023 and surveyed 1,024 individuals across Gen Zs (18 to 26 years old) and Millennials (27 to 42 years old). This study delves into the financial goals, attitudes, and aspirations of young adults in Singapore, with the goal of providing valuable insights and guidance to help individuals to improve overall financial well-being.

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About Etiqa Insurance Pte. Ltd. (Etiqa Insurance Singapore)

Protecting customers since 1961, Etiqa Insurance Singapore is a licensed life and general insurance company regulated by the Monetary Authority of Singapore (MAS) and governed by the Insurance Act. The local insurer is the Singapore operating entity of Etiqa Insurance Group – a leading insurance and takaful business in ASEAN offering life and general insurance and family and general takaful products through its agents, branches, offices and bancassurance network in the region. Etiqa is rated ‘A’ by credit rating agency Fitch for the group’s ‘Favourable’ business profile and ‘Very Strong’ capitalisation. Etiqa is owned by Maybank Ageas Holdings Berhad, a joint venture company that combines local market knowledge with international insurance expertise. The company is 69% owned by Maybank, the fourth largest banking group in Southeast Asia, and 31% by Ageas, an international insurance group with footprints across 16 countries and a heritage that spans over 190 years.