AIA Singapore has unveiled its latest findings from the AIA Live Better Study, highlighting that over 4 in 5 Singapore residents are actively managing their finances in anticipation of a challenging economic year in 2025. The study, conducted in November 2024, reveals a generational divide in financial optimism and preparedness, with younger adults aged 18-29 feeling more financially secure than their 40-49-year-old counterparts.
The study indicates that only 47% of Singaporeans remain optimistic about the economy, with inflation and the cost of living being the primary concerns for 50% of the population. Despite these challenges, Singaporeans are focusing on financial resilience, with 54% prioritising long-term financial readiness. Key strategies include building emergency funds, planning for retirement, and diversifying investments.
Insurance plays a crucial role in financial security, with 48% of respondents recognising its importance. AIA Singapore’s Chief Marketing and Healthcare Officer, Irma Hadikusuma, noted, “Despite the expectation of challenging times, the people of Singapore are showing remarkable resilience and proactiveness.”
Healthcare costs also pose a significant concern, with 53% of residents finding them expensive. However, less than half feel financially prepared to manage these expenses, prompting calls for increased support from both government and private sectors.
The study highlights a stark contrast between age groups, with younger Singaporeans less worried about economic pressures and more focused on experiences. In contrast, those in their 40s are more concerned about financial stability, reflecting their life stage responsibilities. As Singapore celebrates its 60th birthday, the findings underscore the nation’s evolving financial priorities and resilience.
