Recent survey shows younger Singaporeans are less worried about inflation compared to those in their 40s

According to a new study, only 34% of young respondents plan to reduce daily expenses, compared to nearly half (47%) of those in their 40s.

As Singaporeans settle into 2025, financial security is top of mind. According to the latest AIA Live Better Study, 83% of residents are actively planning their finances in response to economic uncertainty. While inflation and cost of living pressures remain key concerns, many are taking proactive steps to secure their long-term financial wellbeing through savings, investments, and insurance.

Younger vs older generations

The study highlights a notable difference in financial confidence between younger and older Singaporeans. More than half (54%) of those aged 18-29 feel financially prepared for 2025, compared to just 34% of those aged 40-49. The latter group, often balancing financial responsibilities for both children and aging parents, expresses greater concern over inflation and job stability.

Younger Singaporeans are more optimistic about the economy (56%) and less worried about inflation as compared to those in their 40s (38%). They are also less inclined to cut back on spending. Only 34% plan to reduce daily expenses, compared to nearly half (47%) of those in their 40s.

Key strategies for financial readiness

Rather than merely worrying about the economic climate, Singapore residents are taking tangible steps to strengthen their financial standing.

• Building financial resilience: Savings (62%), stable income (57%), and emergency funds (52%) top the list of priorities for Singaporeans looking to safeguard their future.
• Insurance as a safety net: 1 in 2 residents (48%) see insurance as a crucial part of financial planning, helping them prepare for uncertainties.
• Investing in the future: 27% of respondents plan to increase their investments, recognising the importance of growing their wealth.
• Tightening budgets: 59% intend to cut back on daily expenses and major purchases to better manage their finances.

Rising healthcare expenses

Beyond daily expenses, healthcare affordability remains a significant worry. More than half (53%) of Singaporeans view healthcare costs as expensive, and only 47% feel financially ready to handle them. To mitigate these costs, many are turning to insurance (57%), personal savings (56%), and government support schemes (49%).

Job security and upskilling

Employment uncertainty is another key factor influencing financial behaviours. While younger Singaporeans (40%) are more likely to prioritise upskilling to stay competitive, those in their 40s focus on building savings (55%) and emergency funds (46%) to cushion against potential job loss.

Support preferences also vary by age. Younger workers prioritise mental health and wellbeing assistance (40%) in the event of job loss, while those in their 40s seek practical aid such as job placement, career transition services (52%) and access to online training and upskilling programmes (47%).

Despite generational differences in outlook and financial behaviour, one thing remains clear — Singaporeans share the goal of securing a stable future in challenging times. With a strategic mix of savings, investments, and insurance, many are positioning themselves to navigate the challenges of 2025 and beyond.