Singaporeans’ financial health has risen after two consecutive years of decline: OCBC index

SINGAPORE: OCBC’s 2024 Financial Wellness Index has revealed a modest rebound in the financial health of Singaporeans after two years of decline. The index edged up to 61 this year from 60 in 2023, reflecting improved economic conditions that appear to have positively influenced personal financial stability.

The OCBC survey highlighted a notable 9% increase in investment activity, with 88% of respondents investing this year, a significant rise from the previous year. This growth was most prominent among those aged 60 to 65, where participation surged by 17%, suggesting a shift in financial engagement as Singaporeans near retirement age.

The types of investments varied, with a strong preference for fixed-income assets. Approximately 43% of respondents reported holding savings bonds, government bonds, or corporate bonds. Meanwhile, 33% opted for local stocks, and 25% invested in unit trusts, showcasing a broad spectrum of strategies as individuals seek financial security.

However, despite the rise in investments, proactive retirement planning remains limited. Only 4% of respondents have begun crafting concrete retirement plans, marking a 6% drop from last year. Among those surveyed, 24% stated they only start or intend to start retirement planning after age 50, indicating a trend of delayed preparation.

The survey also revealed a concerning disparity in retirement readiness between different family structures. Among DINKs (double income, no kids), 58% have yet to begin retirement planning—18 percentage points higher than families with children. This finding suggests that certain demographic groups may be more prone to putting off retirement savings, even as overall investment activity rises.

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