Singaporeans are more likely than their global peers to have spent more than they can afford over the last six months, along with Hong Kong, according to the latest Fidelity global sentiment survey 2023, which came out on Dec 6.
In that same vein, only 43% of people in Singapore and 46% of people in Hong Kong feel good about their day-to-day finances.
The yearly survey is conducted across 23 markets with more than 25,000 participants, analysing sentiments of working adults in regards to their finances, health, work and life.
Noting that 2023 has been a turbulent year with uncertainty seen across economies, markets, and geopolitics, people “generally feel good about their finances, health and work” as compared to the previous year. However, Fidelity International notes that cost of living, inflation and the economy are still causing stress.
As cost of living and inflation spiked around the world, Fidelity found that Asians are among the most likely to have increased how much they saved. However, Singaporeans and Australians were the most likely to have decreased their savings.
Spending more on household expenses remains the main reason for saving less, reflecting the inflationary pressures being experienced in many markets, the report notes.
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Meanwhile, citizens of Singapore, India and mainland China were among the most likely to have increased their retirement savings contributions in the region. While workers aged 50 and over in Asia are unlikely to have changed when they plan to retire, Singapore and Hong Kong stand out as countries with more respondents expecting to retire earlier than later.
“Affordability is still the main reason why people plan to retire earlier, though caring for a family member and the struggle to find new employment post redundancy was particularly apparent across Asia,” Fidelity notes.
Overall, more than half of the global working population is optimistic about the near future, with net optimism increasing by 15% across the globe.
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Asia is generally more optimistic than Europe, and Singapore and mainland China were the most positive, with 75% and 84% of respondents respectively stating that they feel optimistic about the next six months. Japan is the most negative about the near future, with 38% saying they felt pessimistic.
The most common financial goals of respondents around the world remain to be maintaining current lifestyle/income (96%), being financially comfortable in retirement (95%) and preparing for later life (92%), unchanged from 2022.
82% in Singapore have buying a property as a long-term financial goal, significantly above the global average of 67%.
Johann Santer, head of private banking and regional lead for wholesale and wealth at Fidelity International, says that: “Despite the challenges faced by many global economies, people are feeling more optimistic about the future. As cost-of-living continues to rise, people are noticing the importance of increasing their savings through investments. The best way to future-proof your savings and achieve your lifestyle and retirement goals is through consistent investment.
