Managing money can be difficult no matter where we live, and in many cases, it feels like we spend our cash before we earn it. In fact, Nielsen reports that globally, we save or invest just 10 percent of our monthly income on average. Is that enough? How prepared are we for an unexpected household emergency, health issue or job loss? What about long-term financial security and saving for our children’s future?
To help understand consumer sentiment around these questions, Nielsen conducted a global study that polled more than 30,000 Internet respondents in 60 countries about current and future financial goals and the strategies we use to prepare for them. The findings revealed that the glass was half full for nearly seven out of 10 global respondents (69%), as they believed they would achieve all of their financial goals for the future. Yet, of those, only 28 percent felt that their current financial planning would get them there. The remaining majority of confident respondents (41%) were less self-assured, conceding that they would need to closely monitor and adjust investments from time to time to best meet their financial expectations. On the other hand, nearly one-third of global respondents (31%) said they have no confidence they will meet their financial goals with either current or modified asset allocations.
2 in 3 consumers in Singapore (65%) believe they will achieve all their financial goals for the future. While a significant proportion of those is aware of the need to take a pro-active approach to saving and investing - 50 percent say they will need to closely monitor and adjust investments from time to time in order to best meet their financial expectations – a meagre 15 percent thinks that the current planning efforts will suffice for the future. Conversely, more than one-third of Singaporean respondents (35%) have no confidence they will meet all their financial goals with either current or modified asset allocations.
“Understanding consumer sentiment on the saving strategies used to fund financial goals provides insight into how consumers are responding to the challenge of ensuring financial security,” said Luca Griseri, Head of Financial Services, Nielsen Singapore and Malaysia. “As growing numbers of the population enter retirement age in Singapore, there are growing concerns about reliance on government funds to support expenses such as retirement, health care and education.”