SINGAPORE (June 1): Some 40% of Singaporeans and PRs who currently have investments, say they intend to reduce their investments. 16% of them said they will reduce theirs by more than 20%.
This is according to the findings of the OCBC Financial Impact Survey for Covid-19 on Monday. The survey, which looks to measure the financial impact on Singaporeans during the global pandemic, was conducted in mid-May.
The survey, which comprised of some 1,000 Singaporeans and PR working adults between the ages of 21 and 65, found that about 70% have enough savings to cover themselves for up to six months.
Some 47% of those surveyed have experienced a fall in income, and 46% are worried about losing their jobs.
55% of those surveyed also said that they have reduced their savings from 1% to over 20%.
To that end, 27% of those with financial plans said they have stopped setting aside funds, or reduced them for their retirement. 32% of those between 40 to 54 years old – who find themselves having to take care of both their young children and aging parents – said they have decreased or stopped setting aside funds for their retirement. 12% are looking to decrease their current insurance premiums, or terminate their policies altogether.
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Despite the doom and gloom, the survey found that many Singaporeans are taking steps to future-proof themselves, with 53% attending more online courses, and 35% intending to take, or have taken up a second job.
According to the same survey, Singaporeans and PRs in their 20s seem to be better prepared compared to the other age groups. Some 23% of those in their 20s have put aside more money for their retirement plans. 64% of this group – compared to the average 53% across the age groups – were also taking online courses to future-proof themselves.
“It is encouraging that some are doing the right thing to boost their financial health, by continuing to save, spending prudently and making sound investments according to their risk appetite and financial circumstances. But we also hope that those who are cutting back on these aspects, which are crucial to building a nest egg for retirement, will not despair,” says Tan Siew Lee, head of wealth management Singapore at OCBC Bank.
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“Events such as the current COVID-19 crisis, like SARs and the Asian Financial Crisis, will pass. If you are currently experiencing discomfort from the situation, take the opportunity to learn from the experience and do not give up,” she adds.
“The COVID-19 outbreak has caused unprecedented economic impact on many people. Yet, like past crises, the current one will eventually go away. Crisis or not, good financial discipline and planning are important as they have long-lasting impact,” says Koh Ching Ching, head of group brand and communications at OCBC Bank.
As at 12.16pm, OCBC Bank shares were changing hands 2.2% up, at $8.74.
