October 25, 2021

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Most Singapore millennials find managing money difficult since start of Covid-19: StanChart, Banking & Finance

Fri, Dec 04, 2020 – 11:50 AM

UPDATED Fri, Dec 04, 2020 – 1:13 PM

SIX in 10 Singapore millennials are finding it more challenging to manage their money since the start of the Covid-19 outbreak, according to a study by Standard Chartered (StanChart) on Friday.

Only 18 per cent feel in control of his or her own personal finances, the bank said in a press statement. The study also noted that 27 per cent of Singapore millennials reported that their borrowing has increased in the last month, compared to 15 per cent of those over 45 years old.

However, 38 per cent of Singapore millennials said they are more confident that they can achieve their long-term financial goals than they were before the pandemic started.

In contrast, only 25 per cent of those over age 45 in Singapore feel more confident they can reach their financial goals, with those over 55 being the least confident about achieving their financial goals since Covid-19 struck.

Among financial goals, 45 per cent of Singapore millennials are saving more for retirement and 32 per cent are saving for a major purchase such as a new car or home. In comparison, 44 per cent of those over 45 are saving more for retirement, while 13 per cent are saving for a major purchase.

To meet financial goals, 41 per cent of Singapore millennials are looking to better track and budget their spending, while 43 per cent are altering their daily spending.

StanChart said uncertainty around income is the most common worry across all generations.

The bank studied 12,000 adults across 12 markets – Hong Kong, India, Indonesia, Kenya, mainland China, Malaysia, Pakistan, Singapore, Taiwan, the United Arab Emirates, the UK and the US.

The Business Times reported on Wednesday that the interest rate for StanChart’s popular Jumpstart savings account will be lowered to 0.4 per cent per annum for the first S$20,000 – down from the prevailing 1 per cent – and will remain at 0.1 per cent for balances above S$20,000. The bank previously halved rates in July. Meanwhile, Singapore’s largest lender DBS will make the third cut on its flagship deposit account since May.

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