More than one-third of Singaporeans believe they will not be able to meet their future financial goals. These figures were highlighted in a latest Nielsen survey called Global Survey of Saving and Investment Strategies that surveyed more than 30,000 people over the internet in 60 countries of the world.
Conversely, more than two-thirds (65%) of Singaporeans believe they are on course to achieving their financial goals. Among these, 50% are aware of the fact that they will need to take a proactive path to savings and investing that requires constant monitoring and occasional adjustments to investments in order to meet financial goals.
“Understanding consumer sentiment on the saving strategies used to fund financial goals provides insight into how consumers are responding to the challenge of ensuring financial security,” said Luca Griseri, Head of Financial Services, Nielsen Singapore and Malaysia.
Mr. Griseri also commented on the role of government funds in the retirement plans, healthcare, and education plans of Singaporeans. With a growing number of people entering retirement age in Singapore, there are heightened concerns about the increasing dependence on government funds to support expenses such as healthcare, education, and retirement.
About the survey
Nielsen is a global information and measurement company providing insights into what consumers watch and buy. The Nielsen Global Survey of Saving and Investment aimed at evaluating and understanding how consumers feel about their financial status, and how they are preparing to meet current and future expenses.
In Southeast Asia, consumers in Indonesia and Philippines were the most optimistic about achieving their financial goals, with 88% and 83% respectively believing they are well positioned to achieve all their financial goals in the future.
Current Savings vs. Future Investments
The survey showed that for a majority of Singaporean respondents the inclination towards saving and investing in the future is stronger than current saving practices. Singaporean respondents plan to save and invest in the future with an intention to fund personal luxuries (54%), leave financial legacy (53%), build a retirement fund (52%), upgrade property / buy second property (both 50%).
“The greater number of respondents planning to save in the future versus saving now suggests an opportunity to better educate consumers on the saving and investment strategies that will help them meet their financial goals,” said Griseri.
Mr. Griseri also said that consumers usually tend to defer investment or savings decisions and here lies the opportunity for financial services providers to inform and educate consumers about private retirement schemes that will help them meet their financial goals.