Last Updated on 2021-03-18 , 3:49 pm
“Save, save, and save some more”.
That’s the advice my uncle gave me when I was growing up. For some reason, he always said this while I was playing games on my computer.
“Your brother never saves, and that’s why all that progress he made on GTA went to waste”, he said.
I had the vague suspicion that he was talking about saving your progress in video games, but I took that same advice when it came to my finances as well.
And it seems that I’m not the only one in my age group who has that habit.
Survey Finds That Millennials Were Biggest Savers Among All Wage Groups Polled; Can Retire Comfortably
Millennials in Singapore have been the biggest savers during the Covid-19 pandemic, according to a recent survey by digital wealth manager Syfe.
The survey involved 1,000 Singaporeans aged 25 to 60. It calculated their retirement preparedness based on their expected retirement lifestyle and needs, current income, accumulated savings, savings rates and investments, and homeownership.
Based on their scores, they were placed in one of four levels of retirement readiness:
- high
- adequate
- low
- very low
As you might know, most financial experts recommend that you put aside at least 20% of your wages each month for your retirement.
Three out of five millennials polled at the end of last year saved more than 20% of their wages – the highest percentage among all the age groups polled.
In fact, 66% of millennial respondents abided by the 20% rule, compared to just 46% for those aged 35 to 44.
And only 51% of respondents aged over 55 to 60 said they did so as well.
So, what accounts for this disparity?
Fewer Financial Obligations
Millennials may have fewer financial obligations like mortgages, and thus find it easier to save for the future.
This explains why people aged between 35 and 54 were found to be the least ready for retirement.
Many refer to this age group as the “sandwiched generation” because they often have to care for young children as well as older, ailing parents.
This, of course, means more financial responsibilities.
Majority Increased Savings Due to Pandemic
Unsurprisingly, a majority of Singaporeans saved more last year than they did in 2019, thanks to the uncertainties of the COVID-19 pandemic.
But this hasn’t eased their fears over retirement: two out of three respondents did not think they could retire comfortably.
While 76% of those polled were saving for retirement, half of them are saving less than 20% of their salary.
We might scoff at their imprudence, but some people simply cannot afford to save. Having the ability to do so, in itself, is a privilege.
Featured Image: Billion Photos / Shutterstock.com
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