With the prolonged high interest rate environment, elevated inflation and GST hike, 64% of Singaporean homeowners indicated that they are on target with paying off their monthly mortgage instalments, four percentage points higher y-o-y. Fewer Singaporeans – 28% of the ones surveyed – have unsecured debt like credit card and education loans, down three percentage points y-o-y. Among those who have unsecured debt, 40% are borrowing only what is needed compared to 21% in 2022.
Singaporeans are putting their longer-term financial plans on the backburner as they prioritise other financial needs such as paying off their debt. More have been able to pay off their home loans and other personal debts on time amid the current high interest rate environment, according to OCBC’s annual financial wellness index, although the move meant that Singaporeans had to start their retirement planning at a later age. The index, which is in its fifth year, recorded its second consecutive dip to an all-time low of 60.
Of the 2,000 working adults in Singapore aged between 21 and 65 years old surveyed in August, 35% of them said that their retirement plans were on track, down from 42% in 2022. The working adults are assessed on 10 pillars of financial wellness, which are based on 24 indicators established by the bank’s wealth management experts. This year, Singaporeans deteriorated on 15 of the 24 indicators.
