Millennials ‘most fearful’ over financial security: Survey
Experts attribute survey result to constant change and peer influence that the group faces
Starting a family, buying a house, supporting ageing parents and laying the foundation for retirement - these are some concerns millennials have.
Mr Leuven Lee Ming, 26, a financial consultant, said: "I am saving for a Build-To-Order flat, planning for retirement and building an emergency fund."
He sets aside about 30 per cent of his salary each month for short-term savings, 20 per cent for long-term savings and 10 per cent for insurance.
A survey done by NTUC Income and Singapore Press Holdings showed that millennials are the "most fearful" over financial security, compared with other age groups.
More than 550 people aged 25 and above were surveyed from Dec 15 to Jan 14.
About 65 per cent of those aged 25 to 34 ranked themselves as "fearful" and "most fearful" that they would not have enough funds for an emergency.
This is compared to the 57 per cent of those aged 35 to 44 who provided a similar response.
More than half of the millennials surveyed also feared they would not be able to afford a home or meet the extra expenses for the next stage of life.
National University of Singapore sociologist Tan Ern Ser said the reason millennials are so worried might be the constant change and uncertainty in the world today.
"Millennials grew up in a period of growing affluence and change in social values. They therefore have high expectations and look forward to a more comfortable and secure future.
"Unfortunately, comfort and security are now less certain, given the more turbulent economic situation," he told The New Paper.
Dr Tan said economic competition, the spectre of a financial crisis, technological advancement and competition from foreign professionals and fellow graduates affect millennials.
Such uncertainty means they must "constantly upgrade and retool and be prepared for a less predictable future", he added.
NUS Business School associate professor Albert Teo feels that young working professionals might have financial concerns because of the lifestyle they are trying to lead.
"They might feel that they have to project a certain image... because they compare themselves to their peers," he said, revealing that he had heard of how some get into debt by spending beyond their means.
Social media consultant and director of thinkBIG Communications, Ms Belinda Ang, said that with millennials curating their lives on social platforms, it creates a sort of peer influence.
"To be perceived as a part of the peer group, lifestyle and social activities such as getting new clothes for their 'outfit of the day', cafe-hopping and travelling become a norm," she said.
Mr Andrew Yeo, NTUC Income's general manager forlife and health Insurance, said it is never too early to start retirement planning and that it does not mean setting aside a "sizeable chunk" of a person's salary.
He added: "Have realistic expectations about your lifestyle during retirement, because if you do not, then you might start to think that your retirement goals are too difficult to attain... The key here is to achieve a balance."