1 in 4 Gen Zs here does not save, invest or insure enough: Survey

They are the most unprepared of all age groups in bank poll

- Claire Huang

Singapore consumers may be more upbeat about the nation's economy compared with a year ago, but a quarter of Gen Zs polled here are financially unprepared, a bank survey of 1,000 people here found.

More than one in four respondents aged 18 to 25 do not have enough rainy day savings, life insurance coverage or investments, nor do they make other essential financial plans, UOB said on Aug 19.

A basic financial planning guide by the industry and the Monetary Authority of Singapore said it is good practice to have three to six months' worth of expenses as emergency funds.

The guide also suggested that consumers get insurance coverage for death, total permanent disability and critical illness; invest at least 10 per cent of their take-home pay; and make wills and CPF (Central Provident Fund) nominations.

UOB's Asean Consumer Sentiment Study 2024 said Gen Zs, or those aged 18 to 25, are the most unprepared of all the age groups surveyed. About 26 per cent of this group said they did not meet any of the four suggestions in the guide.

The study noted that while Gen Zs are relatively new to the workforce and may be struggling with big-ticket expenses such as marriage and housing, their lack of adequate financial buffers is worrying.

Across age groups, only 10 per cent of respondents met at least three of the suggestions in the guide, 37 per cent met two, 35 per cent met only one and 18 per cent did not hit any of the recommendations.