Singapore’s young workers prefer safe investments, cautious spending: poll

A recent Straits Times poll reveals that most of Singapore’s young workforce are conservative in managing their money, choosing to invest their funds in high-interest bank accounts and other low-risk financial products.

The poll, which found that 73% maintained bank savings accounts, aligned with similar surveys of bank customers who were drawn to a monthly interest of $100-$400 offered by Singaporean banks for savings accounts with balances up to $100,000.

According to the report, this monthly bonus interest is particularly appealing for younger workers, as many have not yet accumulated significant savings after only a few years.

The survey also challenges the common perception that younger workers are daring in their investment choices. High-risk products with potentially lucrative returns, such as cryptocurrency, ranked poorly, while only 12% used digital platforms like robo-advisors and micro-investment apps.

Instead, their investment habits mirror that of their parents, opting for more established options, including fixed deposits, public-listed stocks, ETFs, bonds, gold, and real estate. Nearly half of the respondents also stated that they were more interested in investments that protect capital or those that grew steadily over a long period, even if it meant accepting lower returns.

Like their older counterparts, 88% of young workers surveyed have taken steps to ensure financial security for themselves and their families in case of a serious illness or accident. About 63% had life insurance, while 40% had private hospitalisation policies. Another 37% say they have bought critical illness insurance so they can receive lump sums or monthly payments in case they need to leave work to recover from serious ailments.

Despite these prudent investment habits, 57% of young Singaporean workers are unaware of the importance of setting up an emergency fund to cover at least six months’ expenses. Around 70% are also drawn to chance-based activities like buying lottery tickets, although many of them limit their spending to under $50, the report said.

The Straits Times poll was done in collaboration with Kantar and surveyed 1,000 full-time employees aged 18 to 30 across Singapore.