Global report shows Singapore has high proportion of wealth in insurance, pensions

SINGAPORE: A report based on the latest Global Wealth Report from Swiss bank UBS shows that while the average wealth per adult has increased, the median figure has actually decreased.

Nevertheless, the report shows that when it comes to wealth allocation, Singapore has a high proportion of wealth, 31 per cent, tied up in insurance and pensions. In comparison, this figure is less than 19 per cent in the United States.

Having a significant portion of one’s wealth in insurance and pensions is important as it is an indicator of long-term financial security, especially with people living longer these days.

Average vs median wealth

First, an explainer. The average wealth per adult is the total wealth in a country divided by the number of adults. Median wealth, meanwhile, is the midpoint where half of the adults have more, and the other half have less. This means that if a country has a disproportionate number of billionaires, the median can be much lower than the average.

In UBS’ Global Wealth Report, Singapore ranked seventh in terms of average wealth per adult at US$441,596 (approximately S$568,963). However, in terms of median wealth, Singapore is 18th on the list. Median wealth per adult in Singapore for 2025 is at US$113,976 (approximately S$146,715). 

Unsurprisingly, Switzerland, where the average wealth per adult is US$687,166 (approximately S$885,825.86), tops the list. For median wealth, the country is ranked seventh (US$182,248, approximately S$234,706).

Second on the list is the United States, where the average wealth per adult is US$620,654 (approximately S$800,000) and the median wealth is US$124,041 (approximately S$S$160,005), making it 15th.

Interestingly, the report shows that Luxembourg and Hong Kong have the smallest gaps between average and median wealth. Luxembourg is fourth on the list for average wealth (US$566,735, approximately S$730,136), but is ranked first in terms of median wealth (US$395,340, approximately S$509,240).

Hong Kong is third on the list for average wealth (US$601,195, approximately S$774,500), and is ranked fourth in terms of median wealth (US$222,015, approximately S$285,995).

More than 330,000 millionaires

However, since 2020, average wealth has actually fallen in Switzerland and other countries such as Qatar and the Netherlands. This is not the case in Singapore, where it has increased by around 25 per cent in the past five years. South Korea, meanwhile, has seen the highest increase in average wealth per person during this time, a whopping 44 per cent.

Also, similar to South Korea, average wealth in Singapore has grown faster than median wealth. Given Singapore’s 331,000 US dollar millionaires, this should not be surprising. When it comes to wealth inequality, Singapore is eleventh on the UBS report, with a Gini coefficient of 0.70.

Insurance and pensions

The UBS report looked into five representative markets in its review of wealth allocation: Australia, Singapore, Switzerland, the UK, and the US, which showed key differences.

The chart above shows that Singapore has the highest proportion of wealth tied up in insurance and pensions, and notes that since 2020, these holdings have gone up from just over 22 per cent to almost 30 per cent. /TISG

Read also: UBS report ranks SG 8th for highest average wealth per person, but netizens point to high wealth inequality