Introducing Singapore’s first

Financial Wellness Index

Everywhere we turn, we see signs
that people in Singapore
take their health
more seriously

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At all times of the day – before work,
at lunch, after work – we see people
run, cycle, hit the gym,
do yoga and pilates.

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Salad shops are now
as common as fast food restaurants.

New healthy diets are all the rage.

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At the same time, rising costs of living,
topsy-turvy financial markets and caring for
parents and children have raised stress levels.
Financial wellness is a
major concern.

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That got us thinking: can we say the same for
While more are how they are
taking care of taking care of
their health, their wealth?

Image from DPS

– Half health
and half wealth

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So we set out to find out.
With Singapore’s first Financial Wellness Index.

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 We first had to define financial wellness.
Our financial experts listed
10 pillars that would define how financially well someone is.
SAVING REGULAR REGULAR EXCESSIVE SPENDING
HABITS INVESTING REVIEWS SPECULATION BEYOND MEANS

PROTECTION RETIREMENT GAMBLING BORROWING MANAGEABLE

FROM FINANCIAL PLANNING HABIT MONEY FROM DEBTS
EMERGENCIES LOVED ONES 8
 From there, we asked respondents about
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indicators
• Regular rate of savings
• Investing
• Mortgage insurance
• Sufficient medical insurance
• Financial retirement planning
• Taking steps to be healthy to work
for as long as I want
• Good management of unsecured
debt
• Regular passive income
which, taken together, paint a comprehensive
picture of one’s financial wellness.
• Stick closely to budget
• Research on investments and
financial products
• Review of financial plan yearly
• Being aware of tax relief schemes
• Ensure finances are taken care of
after passing on
• Gambling more than one can
afford to lose
• Excessive speculation
• Often borrow money from
friends/relatives
• Spend beyond means to keep up
with peers
• Pay minimum sum on credit cards
• Enough funds to overcome crisis
• Able to defray major medical expenses
• Sustain financially for 6 months if
jobless
• Pay off housing loan
• Meet family’s financial needs
• Dependents taken care of
• Spend comfortably on things
• Maintain lifestyle after retirement 9
 44 we would know the level of
Singaporeans’ financial wellness.
questions
later

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In May,
we polled

2,000
working
adults
across the ages
of 21 to 65
in Singapore
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We studied different segments of the population

Sandwiched Married Singles

Generation

20’s 40 to
54

30’s 55 and
older
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 We found that more are But may
taking their need help with
health seriously their wealth.

EXERCISE
AT LEAST
ONCE A WEEK
85% Image from DPS
– Half health
and half wealth

TRY TO EAT
HEALTHILY 88%

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Singaporeans scored an average 63.

63

Have not Intend Started Started

started to start but behind but ahead

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

Have not started Starting/ Intend Started, behind On track on most Ahead on almost
to start on most indicators all indicators
indicators

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People in Singapore are
good at the basics.

26% 82% 69%

SAVED FROM THE HAVE PROACTIVELY SET A BUDGET
AVERAGE PERSON’S GOTTEN MEDICAL AND STICK TO IT
SALARY INSURANCE COVERAGE
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 But when it came to investing,
they didn’t fare so well.
INVESTORS WHO
SPECULATE

34% HAVE NO
PASSIVE INCOME 36% EXCESSIVELY FOR
QUICK GAINS

DO NOT INVEST
48% OF INVESTORS
HAVE
INVESTMENTS
27%
NOT PERFORMING
TO THEIR TARGETS
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Regular savings, and not investing,
is still seen by many as the mainstay of their retirement plans.

33%
37%
think of investing as
a form of gambling
don’t know the best way
to grow their money
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Many are
not equipped for financial emergencies.

42%
73% 51%
can stretch their savings
on track to accumulate to last for 6 months
enough funds for an
emergency
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They are not financially well-prepared to
enjoy their golden years.

73% 65%
are behind with
are not on track accumulating enough
with their funds for maintain their
retirement plans lifestyle after retirement
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These financial
gaps meant

40% had worried about

money the week
we surveyed them.
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We also saw intriguing differences between the genders.

Women were, by and large, No. of respondents:

Men: 1,120
more averse to investing. Women: 880

DON’T KNOW BEST WAY TO

NO INVESTMENTS GROW WEALTH NO PASSIVE INCOME

31% 39% 32% 43% 44% 54%

MEN WOMEN MEN WOMEN MEN WOMEN
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 among the

51% sandwiched generation

find it tough to financially support
both their parents and children

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The sandwiched generation
deals with more financial gaps.
No. of respondents: 458

31% 29% 41%

HAVE UNSECURED DEBT INVESTORS WHO SPECULATE
EXCESSIVELY FOR QUICK GAINS
SINGAPORE AVERAGE: SINGAPORE AVERAGE:
27% 27%
HAD WORRIED ABOUT MONEY
OVER PREVIOUS SEVEN DAYS
SINGAPORE AVERAGE:
40%
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Because of these financial gaps, the sandwiched generation
does more to achieve financial stability.

59% 78% 52%

REVIEW FINANCIAL PLANS HAVE ARRANGED FOR ABLE TO SUSTAIN THEMSELVES
YEARLY FINANCES TO BE TAKEN CARE FOR 6 MONTHS IF JOBLESS
OF AFTER THEIR DEATH
SINGAPORE AVERAGE: SINGAPORE AVERAGE: SINGAPORE AVERAGE:
49% 66% 51%
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The 51% who find it tough supporting
Index
both their parents and children (slide 22) score 59
worry more about several issues.
Have problems
teaching their Economy not Not being able to
children about improving in the spend comfortably
31% the value of
money
74% next 12 months
Singapore
63% beyond the basics
Singapore
Singapore average: 70% average: 51%
average: 26%

Concerned about Not being on

Don’t know the
not being able to target in paying
best way to grow
39% match peers’
lifestyles 48% their money
Singapore
22% off unsecured
debt
Singapore Singapore
average: 37%
average: 34% average: 18%
Among those with
unsecured debt 25
We also saw intriguing differences between
those who were married and those who weren’t.
Those who were married were more likely to have No. of respondents:
Married: 1,244
made plans for the future. Single: 681

ON TRACK WITH
OWN INVESTMENTS HAVE PASSIVE INCOME RETIREMENT PLANS

69% 62% 55% 47% 31% 21%

MARRIED SINGLE MARRIED SINGLE MARRIED SINGLE
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 People of different age groups
had different scores in the Financial Wellness Index.
20s 30s 40 to 54 55 and older
Age

FINANCIAL
WELLNESS INDEX 61 62 64 65
SCORE

• Disciplined savers and • Taken steps to grow • Many are on track with • Many have made plans to
spenders investments and passive investments and passive pass on their assets
• Started investing early income income
• Married 40s better positioned

• Need to know the right • Struggle between • Single 40s have • Many still not on track
way to grow wealth balancing debt and wealth insufficient planning with their retirement
• Avoid excessive risk in accumulation • Some struggle to meet plans, family needs,
investments • Need to reinforce their needs of both parents and sustaining lifestyle after
safety net children retirement
WANTS TO
RETIRE AT^ / 56 59 62 67
WITH HOW
MUCH*
$1m $900k $800k $500k
^Average 27
*Median
Those in their 20s save conscientiously and stick to their budget more 61
so than other age groups.
SPENDING SAVINGS INVESTMENT RETIREMENT
72% 31% 56% Younger desired
Stick to their budget Average saving rate Have investment products retirement age ^
56 vs. 61
79% 66% vs. 20s Singaporeans
60% 52%
Singapore average savings Desire higher
vs. More males have started
rate is 26% investing than females retirement fund**
69% S’poreans stick S$1mil vs. S$800k
closely to budget Products owned include
Stocks and shares (local and 20s Singaporeans
international), Unit Trust, Exchange
traded funds (ETFs), Investment-
But more males are linked insurance, Fixed income But half have not started
securities/bonds
concerned about keeping on retirement planning:
up with their peers* vs. 50% vs. 32%
66% S’poreans own 20s Singaporeans
investments
42% 37%
*worried about not able to maintain their lifestyle comparable to their peers
^Average
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**Median
All figures are out of 20s unless stated
 But they should seek qualified financial advice or do more research to 61
better meet their investment targets.
Half of 20s females don’t know the best way to Close to half follow tips from friends/ family or do no research,
grow their money and shy away from investing impacting investment performance

47% Have investment

“Don’t know the best way to grow my money” 56% products
13% 34% 23% 30%
Among which,
55% vs 37% Conduct Excessively speculate
32% Singapore average
Follow tips Follow
research
beyond what
32% for quick gains
from qualified qualified
I don’t do any friends/ financial financial reps
research* family reps told me to do
FINANCIAL REGRETS
Wealth accumulation 0% 4% 7%

PERFORMANCE OF
12%
“Investing or speculating in

INVESTMENT
Cash Deposits Cash Deposits individual stocks”
1. 63%
35% 55% 67%
71% 69%
“Getting into forex trading before
doing an in-depth research”
Stocks/shares Insurance
2. 9%
24% 38% 30%
“Invested in a stock that resulted in
22% 20% a 60% loss in capital”

Insurance Stocks/shares
3. Below my target “Buying stocks without checking
11% 8% Meet my target their fundamentals”
Exceed my target

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All figures are out of 20s unless stated
 Those in their 30s are stretched between wealth accumulation 62
and debt creeping in.
30s are at a life stage where financial obligations arise 30s are also actively trying to grow their wealth

69% INVESTMENT

60% are married have investment products

vs.
75% 63% 66%
More males have started S’poreans own
51% 30% investing than females investments
are servicing Have some *trouble
out of paying monthly
a mortgage housing loan
which
PASSIVE INCOME^
loan installments BUT 55%
have regular passive income
vs.
31% 25% 52%
have unsecured debt
62% 49% S’poreans have
Credit Card debt More males have regular
regular passive
vs. passive income
13% income
27% S’poreans Personal Line of credit
have unsecured
Review financial plan yearly vs. 49%
debt
with a financial planner 54% Singapore avg.

*Trouble: sometimes miss paying on time, able to pay but with some problems, may be forced to sell or downgrade
^ Passive income refers to rental, dividends, interest income, royalties, payout from annuities etc. 30
All figures are out of 30s unless stated
 The anxiety of wealth accumulation combined with 62
their obligations can potentially lead to less-than-ideal outcomes.

BAD LESS THAN IDEAL

30s SG
HABITS OUTCOMES
Don’t stick Worried about money
29% closely to budget 39% 43% in the past week 40%

Pay only the Cannot sustain themselves

25% min credit card bills 29% 21% for 6 months if jobless 19%

Excessively speculate Insufficient funds to

25% for quick gains 22% 20% overcome crisis 19%
Spend a large extent or
Can’t spend
21% above their means to keep
up with peers
19% 18% comfortably ^ 17%

Often borrow money from Tough meeting family’s

11% friends/relatives 13% 17% financial needs* 15%
*Among people with dependents, family financial needs: e.g. Children education, Care for parents 31
^ Can’t spend comfortably refer to only able or cannot even afford the basic

All figures are out of 30s unless stated

 Those between 40 to 54 who are married are into growing their wealth 64
and financial protection while singles are falling behind.
FINANCIAL MEDICAL MORTGAGES REVIEW FINANCIAL
WELLNESS INDEX
INVESTMENT & PASSIVE INCOME PLAN
INSURANCE Among those servicing
mortgage loans

On track with Have some problems

69% 66% performance of
87%
paying off housing
loans 53% Review
Own Investments investment
MARRIED (among those who have investments) financial plan
WITH 64 57% On track with
Proactively obtain
19% yearly with a
KIDS
70% performance of passive personal medical Paying
monthly financial
Have regular income* insurance installments planner
passive income* (among those who have passive on target
income)
MIDDLE AGE BY LIFE STAGE

On track with Have some problems

MARRIED 65% 57% performance of

87%
paying off housing
loans 35% Review
investment financial plan
Own Investments
65
(among those who have investments)
Proactively
WITHOUT On track with obtain personal Paying 21% yearly with a
financial
KIDS 59% 61% performance of passive
income* medical
monthly
installments planner
Have regular passive on target
income*
(among those who have passive
income)
insurance

On track with Have some problems

62% 50% performance of
79%
paying off housing
loans
41% Review
Own Investments investment financial plan
SINGLE 62 (among those who have investments)

On track with
Proactively obtain
29% yearly with a
46% 58% performance of passive
personal medical Paying
monthly financial
planner
Have regular passive income* insurance installments
on target
income* (among those who have passive
income)
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*Passive income refers to rental, dividends, interest income, royalties, payout from annuities etc.
All figures are out of 40-54 unless stated
 1 in 2 who financially support both parents and children have 64
difficulties meeting both parties’ needs.
12% Dependents
1 in 3 are supporting both children
Have dependents
and parents
88% No dependents financially

Among those who are financially supporting children and parents…

50% 30% 14% 6%

Can meet the needs of Can mainly meet the Can mainly meet the Tough meeting both
both Children & needs of Children need of Parents needs*
Parents
Average age 45 years old 45 years old 45 years old 47 years old
Main Occupation Senior, Middle Middle Management, Middle Management, Middle Management,
Management Professionals Junior Management, Office Workers,
Skilled Workers
Average Monthly
personal income
$8.6k $7.9k $6.9k $5.2k
Average Monthly
household income
$12.6k $11.9k $10.2k $7.7k
*Read with caution – sample size less than 30 33
All figures are out of 40-54 unless stated
 This is largely due to insufficient planning and financial management. 64

50% 30% 14% 6%

Can meet the needs of both Can mainly meet the needs Can mainly meet the need Tough meeting both needs*
Children & Parents of Children of Parents

77% stick to their budget 53% investment performs 35% don’t stick to their 56% don’t stick to their
closely below target budget closely budget closely
(among those who have investments)

35% speculate excessively

Save 28% of their income 47% passive income^ for quick gains
44% Gambled more than
monthly performs below target they can afford to lose
(among those who have passive income)
30% pay the min. sum sometimes / most of the
70% Review financial plan 28% Gambled more than required for credit card bills time / almost always
(among credit card holders)
yearly with a professional they can afford to lose
sometimes / most of the time / Among those servicing mortgage loans 44% don’t do any
have problems paying off
almost always 29% housing loan
research when making
38% conducted own financial decisions
research on investment 32% don’t stick to their 10% fear being forced to sell
off/downgrade
products budget closely 21% Spend a large extent or
above their means to keep up
24% Credit card debts
with peers
*Read with caution – sample size less than 30
^ Passive income refers to rental, dividends, interest income, royalties, payout from annuities etc.
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All figures are out of 40-54 who have both parents and children as financial dependents unless stated
 Some in this age group are also struggling with their retirement plans. 64

50% 30% 14% 6%

Can meet the needs of Can mainly meet the Can mainly meet the Tough meeting both
both Children & needs of Children need of Parents needs*
Parents
Made financial 53% behind 84% behind 82% behind 94% behind target/
retirement plans target/not started target/not started target/not started not started
Retirement plans 1. Regular Savings 1. Regular Savings 1. Regular Savings
in place (Top 3) 2. Interest from savings 2. CPF LIFE 2. Fixed deposits
3. Fixed deposits 3. Whole life insurance 3. CPF LIFE

Funds to maintain 47% behind target/ 79% behind target/ 74% behind 88% behind
current lifestyle not started not started target/ not started target/ not started
after retirement

Worried about
money in the past 30% 47% 44% 81%
week
*Read with caution – sample size less than 30 35
All figures are out of 40-54 who have both parents and children as financial dependents unless stated
 Those 55 and older have made plans for their families but could 65
do more to maintain their lifestyles after retirement.
Retirement Funds required
$500k $500k
78% vs. 66% Singapore average
Health vs Wealth BEST FINANCIAL
DECISIONS
Done something to ensure
finances are taken care of after
they pass on 93% 75%
Try to Eat Have medical
“Investment and long
term savings”
healthily insurance plan
60% vs. 48% Singapore average
“Bought insurance while
still young”
Retirement Plans in place Able to meet family’s financial needs*
(e.g. children’s education, care for
elderly parents) 84% 48% Have passive
1. Deposits Deposits Exercise FINANCIAL REGRETS
income^
vs. 73%
63% Singapore average
“I regretted for not
Not on track with their financial
2. CPF CPF
retirement plans 78% 40%
Go for health Review
starting early with
investments”
checks financial plan “Invested in bad stocks”
Tough to sustain
3. Stocks/
shares
Endowment
51% lifestyle after 67%
retirement

^Passive income refers to rental, dividends, interest income, royalties, payout from annuities etc.
*Among people with dependents 36
All figures are out of >55 unless stated
These are insights from Singapore’s first
Financial Wellness Index by OCBC.
We will conduct this
research every year to
gauge Singapore’s
financial wellness.

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