A recent survey by the Million Dollar Round Table (MDRT) has highlighted a paradox in Singaporeans’ financial behaviour. Whilst half of the population rates their financial literacy as “good” or “excellent,” a significant portion remains hesitant to utilise diverse financial tools. The survey, conducted between 30 January and 7 February 2025, involved 2,000 Singaporean adults and revealed that 81% still rely on basic savings accounts, despite being aware of other options like fixed deposits and high-yield savings accounts.
The survey also uncovered that younger Singaporeans, particularly millennials and Gen Z, are more inclined towards riskier investments such as cryptocurrencies and alternative assets. However, this risk appetite is not matched by adequate insurance coverage. Only 65% have hospitalisation insurance, and a mere 14% hold pet insurance policies, despite high awareness.
Jake Lim, an MDRT member, expressed concern over the willingness of younger individuals to take high-interest loans for stock investments. “This underscores the critical need to educate Singaporeans, not just about the financial tools available, but more importantly, the risks,” he stated.
The findings also show that Singaporeans continue to trust traditional sources for financial advice, with family, schools, and newspapers being more trusted than online platforms. Joyce Chan, another MDRT member, emphasised the importance of a diverse financial portfolio to safeguard against unforeseen situations.
The survey suggests that whilst Singaporeans are aware of their financial options, there is a need for better education on the risks and benefits of diversifying their financial portfolios.
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