Nearly one in two, or 47% of Singaporeans have experienced a deterioration in their financial wellbeing since the onset of the pandemic.
Of these individuals, 43% noted a decline in their wage-earning prospects, while 47% said that will “struggle to independently meet my financial needs, but will manage”.
Singaporeans aged between 35 and 44 have been the worst hit with 51% seeing a decline in their financial wellbeing.
This is as these individuals – known as the sandwiched generation – are typically responsible for caring for both their parents and children.
Interestingly, Singaporeans in the older age groups have not felt the impact of the pandemic as much, with 46% of those between the ages of 55 and 64 seeing a decline in their financial wellbeing. Similarly, the statistic was just over 39% for individuals between 65 and 74 years old.
Meanwhile, 40% of millennials or those aged between 25 and 34 said they were feeling a strain on their finances.
These were some of the findings highlighted in the recent “Re-imagining 100: Financial planning amidst a crisis” report produced by The Economist Intelligence Unit (EIU) and commissioned by Prudential Singapore.
The results are based on the financial planning attitudes reflected by the 1,281 Singaporeans surveyed.
To Dennis Tan, CEO of Prudential Singapore, it is fathomable that the sandwiched generation have taken a greater hit from pandemic, given their existing struggles in supporting their ageing parents and growing children.
“The economic uncertainties created by the Covid-19 pandemic has led to considerable financial stress and intensified the pressure faced by this group of Singaporeans. As a consequence, their health – both mental and physical – has also suffered in the past year,” he says.
It is no surprise that nearly half or 47% of the individuals across age groups are now questioning their ability to meet their financial expenses if they were to experience something unexpected, like an illness.
See: Prudential Singapore offers new wealth solutions on Pulse app
A separate study entitled “Re-imagining 100: The pandemic’s impact on longevity” points out that 25% saw a worsening in their physical health since the start of the pandemic.
Meanwhile more than a third or 35% saw a deterioration in their mental health while 42% noted a change in their stress levels.
Even so, the study – which is also produced by EIU and commissioned by Prudential Singapore – found that Singaporeans are seemingly better prepared to live longer, than they were in 2018.
From a health perspective, 31% said they are prepared to live till 100, compared to 23% back in 2018.
Similarly, 29% responded that they feel financially ready to live till 100, as opposed to 26% feeling that way in 2018.
Tan believes the improvement “speaks to the resilience and optimism Singaporeans are showing about the future, despite the currently challenging circumstances”.
Going forward, he says it is critical to keep up this trend.
For starters, he advises that people need to recognise the risk of outliving their savings by kick starting their plan for longevity, early.
Aside from this, Tan says “we also need to focus on emotional wellbeing as poor mental health can have an adverse impact on physical health and affect quality of life in later years”.
Cover image: file photo
