A recent UOB Asean Consumer Sentiment Study found that 68% of Singapore consumers are optimistic about the local economy, marking a significant increase of 20 percentage points from last year. Jacquelyn Tan, head of group personal financial services at UOB, noted this positive shift reflects Singapore’s resilience amidst regional economic uncertainties.

However, the study highlighted concerning trends regarding financial preparedness, particularly among younger consumers. Despite their optimism, many are not taking necessary steps to secure their financial futures, with 26% of Generation Z (aged 18 to 25) failing to meet basic financial guidelines set by the Monetary Authority of Singapore.

UOB, in collaboration with the Boston Consulting Group, surveyed 5,000 individuals across five Southeast Asian countries, including Singapore. The study revealed that 63% of respondents cited persistent inflation as their primary concern, alongside rising household expenses (58%) and declining savings (52%). Notably, Singapore consumers expressed less worry than their regional peers regarding these issues.

The survey also assessed financial literacy, finding that only 10% of Singapore respondents met three or more of the financial guidelines, with 18% meeting none. Insurance preparedness was particularly low, with only 37% having critical illness coverage, and just 22% covered for death and total permanent disability.

In legacy planning, only 50% of Singaporeans have made a Central Provident Fund nomination, and the figure drops to 29% for Gen Zs. Conversely, younger generations are actively investing, with 55% of Gen Z and 62% of Millennials adhering to investment guidelines.

Tan emphasized the need for increased financial preparedness among the youth, stating, “While they are taking positive steps by saving and investing, they need more support in insurance coverage and legacy planning.”