A number of Singaporeans within the age of 20 to 35 years old have zero savings, revealed a survey by EnjoyCompare.com as reported in the media.
According to the report, 36 percent of the respondents have no savings, while a quarter have put aside less than $6,000 for rainy days. In comparison, those in their parents’ age bracket have an average savings of $60,000.
“These are shocking figures,” said Mark Hall at the Singapore-based financial portal.
“There’s so little money going into investment or savings that some people are finding themselves rapidly up to their necks when they hit troubled times.” Without a contingency fund, some may even lose their homes if they become unemployed.
“The current generation are seemingly living for the day and spending their money rather than putting some aside for when it might be needed. This is endemic of what’s rapidly becoming known as the ‘renting generation’, who would rather not save money for a mortgage, pension or even for emergencies,” he explained.
In fact, 80 percent of the people surveyed had spent money they could have saved for a housing loan deposit, and about 33 percent are planning to purchase a residential property instead of renting.
In terms of expenses, the average Singaporean graduate spends 40 percent of their wage on rent, while another nine percent goes to student loan repayments.