The
study
also
found
a
stark
contrast
in
the
temperament
and
financial
preparedness
between
two
age
groups.
While
more
than
half
(54%)
of
those
aged
18
–
29
feel
financially
prepared
to
tackle
the
challenging
economic
situation
in
2025,
only
34%
of
those
aged
40
–
49,
many
of
whom
are
taking
care
of
their
parents
or
kids,
share
similar
sentiments.
Conducted in November 2024, the AIA Live Better Study[1] investigated the evolving financial, health, and wellness needs of Singapore consumers. Against expected muted economic growth in 2025[2], this year’s study explores the mindset and actions of Singapore citizens and PRs as they navigate these challenging times.
Unsurprisingly, only 47% of Singapore residents are optimistic about the economy. Inflation and cost of living (50%) remain the top economic concern amongst the population, followed by worries over job security (35%) and income levels (34%).
“Despite the expectation of challenging times, the people of Singapore are showing remarkable resilience and proactiveness. This reflects a maturing society which has a better understanding and appreciation of the value of planning early and planning well for their future and that of their loved ones, which is especially noteworthy as we celebrate Singapore’s 60th birthday this year,” said Irma Hadikusuma, Chief Marketing and Healthcare Officer at AIA Singapore.
“AIA Singapore is committed to supporting the community with compelling solutions, tools and resources needed to overcome today’s challenges and secure a prosperous future. Our mission is to help people live healthier, longer, better lives, ensuring financial and overall well-being,” she added.
Securing
financial
resilience:
Insurance
and
investments
take
centerstage
in
long-term
financial
plans
Rather
than
wringing
their
hands
in
despair,
Singapore
residents
are
taking
on
a
positive
mindset
with
more
than
1
in
2
(54%)
indicating
that
financial
readiness
in
the
long-run
is
more
important
to
them
in
2025
compared
to
the
previous
year.
The top three priorities Singapore residents believe will help them achieve financial security are savings (62%), a stable income (57%), and to have emergency funds (52%). Notably, 1 in 2 (48%) Singapore residents also cited insurance as an important way to ensure financial stability, a positive indication of an increased understanding about the importance of insurance as part of long-term financial planning.
Looking
ahead,
Singapore
residents
have
plans
to
uptake
a
myriad
of
long-term
financial
solutions
to
prepare
against
the
volatile
economy
in
2025:
- Approximately 3 in 5 (59%) Singapore residents are tightening their purse strings and planning to spend less on daily expenses or big-ticket purchases.
- Singapore residents are making plans to build emergency funds (29%), plan for retirement (28%), and diversify investments (27%) to strengthen their long-term financial readiness.
- Singapore residents are likely to see an increased uptake in endowment and investment plans as over a fifth of respondents intend to boost their expenditure towards insurance (22%) and investments (27%) in the coming year.
Balancing
the
budget
in
preparation
for
rising
healthcare
expenses
A
substantial
subset
when
it
comes
to
Singapore’s
cost
of
living
is
healthcare
costs.
Aligned
with
Health
Minister
Ong
Ye
Kung[3],
the
study
noted
that
the
increasing
cost
of
healthcare
is
a
key
economic
concern
that
must
be
addressed.
Key
insights
include:
- More than half (53%) of Singapore residents perceive healthcare costs to be expensive.
- Yet, less than half (47%) feel financially prepared to manage these costs, calling for more support, financial and non-financial, by both the government and private sectors.
- Singapore residents are taking matters into their own hands, planning to combat the potential high healthcare costs via insurance plans (57%), personal savings (56%) and government healthcare financing and support (49%).
Many in their 40s are feeling the pressures of being in the sandwiched generation, and they are the most pessimistic about their outlook for 2025 across all demographics. This is in comparison to the more optimistic demographic of 18 – 29 year olds in Singapore.
Financial
Priorities
Shift
with
Age:
From
Experiences
to
Stability
Despite
the
nation’s
overall
sentiment,
the
younger
generation
(aged
18
–
29)
are
less
stressed
about
the
economy
and
are
less
likely
to
take
steps
towards
financial
preparedness.
This
is
in
contrast
to
Singapore
residents
in
their
40s.
- The younger generation is more optimistic (56%) about the economy than those in their 40s (38%),
- They are less concerned about inflation and cost of living (34% compared to 63%).
- Fewer 18-29 year olds strive to be debt and loan free (16%) compared to their older counterparts (28%).
- Less than 2 in 5 (34%) younger adults foresee themselves cutting back on daily expenses and only 35% planning to reduce their budgets for big-ticket items.
- In contrast, approximately 1 in 2 (47%) of those in their 40s will be cutting their daily spending and 45% will be reducing purchases of big-ticket items.
Stresses
on
the
Job
Market
Having
stable
employment
is
important
to
all
Singapore
residents
regardless
of
age.
Approximately
1
in
2
(47%)
of
those
aged
between
18
and
29
years
old,
and
approximately
3
in
5
(61%)
of
those
in
their
40s
cited
it
as
an
increasingly
important
aspect
of
their
overall
wellness
in
2025.
However,
their
likely
approach
to
pre-empting
a
potential
loss
of
job
differs:
- While the younger ones prioritise upskilling (40%) more than the older generation (28%),
- The latter will focus on building their savings (55%) and setting aside emergency funds (46%).
- While 18 – 29 year olds find mental health and well-being support (40%) to be more important,
- 40 – 49 year olds would prefer more practical support in the form of job placements, career transition services (52%) and access to online training and upskilling programmes (47%).
[1] The seventh wave of the AIA Live Better Study is an independent study that was conducted from 29 November to 9 December 2024 with a sample size of 1,000 representing Singapore’s general population.
[2] ‘Economic trends to watch for Singapore in 2025’ (Jan 1, 2025) The Straits Times. Available at: https://www.straitstimes.com/business/economic-trends-to-watch-for-singapore-in-2025
[3] ‘Healthcare costs are rising in Singapore. Is there really nothing we can do about it?’ (Nov 23, 2024) CNA. Available at: https://www.channelnewsasia.com/cna-insider/healthcare-costs-rising-singapore-hospitals-government-subsidies-moh-4764391
[4] ‘The Big Read: Understanding why millennials and Gen Zers feel the way they do about work’ (Jul 30, 2022) CNA. Available at: https://www.todayonline.com/big-read/big-read-understanding-why-millennials-and-gen-zers-feel-way-they-do-about-work-1956641
Hashtag: #AIASingapore
The issuer is solely responsible for the content of this announcement.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate