Singapore’s dual income, childless (DINK) couples are not as financially prepared as is commonly believed, the newspaper said. OCBC Financial Wellness Index 2024.
The study found that DINKs lag behind their parents on 8 out of 24 financial health indicators, revealing significant gaps in retirement planning, financial discipline, and long-term financial preparedness. It has become.
DINK’s score on retirement planning was 33, compared to Parent’s score of 44, highlighting key areas of concern.
The findings are based on an online survey conducted in August 2024 among 2,000 Singaporeans aged 21 to 65.
The study assessed measurable behaviors, financial virtues, and undesirable habits that impact financial health. DINKs underperformed on all five financial virtues, including reviewing their financial plans annually, seeking professional advice, and sticking to a budget.
Only 39% of DINKs review their financial plans annually, compared to 50% of parents, while 21% of DINKs seek financial advice from a professional, compared to 32% of parents who do so. I’m behind.
Additionally, 70% of parents adhere to a budget, compared to only 63% of DINKs.
Regarding inheritance of property upon death, 57% of DINKs had arrangements in place, compared to 82% of their parents.
Gap between DINKs and post-retirement reality
Retirement planning emerged as a critical deficiency for DINKs.
58% of DINKs have no retirement plans, but only 40% of parents say the same. Among those without a plan, 55% of DINKs said they had no intention of starting a plan within the next year.
Despite their lack of planning, DINKs are aiming for ambitious goals, with 34% aiming to retire by age 55, compared to 22% of their parents.
However, nearly 85% of DINKs underestimate their financial requirements for retirement, and 1 in 4 people without a retirement plan are unable to afford the most expensive retirement assets, such as personal property, luxury cars, and frequent international travel. I want a lifestyle (Lifestyle C). .
In contrast, older adults choose the most basic retirement lifestyle (Lifestyle A), with 63% of those in their 60s choosing this option.
This reflects a more conservative approach to retirement planning as people approach retirement age, and represents a significant 21 percentage point increase over last year.
DINKs’ dilemma when balancing today’s lifestyle with tomorrow’s security
DINKs also struggle to earn regular passive income, with a score of 22 compared to their parents’ score of 26, which focuses on long-term financial security. It reflects that there is no
When it comes to broader financial health metrics, DINKs are more likely to save regularly (96 vs. 93), manage their unsecured debt well (95 vs. 87), and pay off their mortgage (78 vs. 70), among other things. outperformed their parents in these areas.
However, these short-term victories were overshadowed by weaknesses in long-term planning.
The survey also highlighted undesirable financial habits. For example, 15% of DINKs reported spending beyond their means to maintain socialization with their peers, compared to 21% of parents.
Additionally, 14% of DINKs reported paying only the minimum amount on their credit cards, significantly lower than the 31% of parents who paid the same amount.
Among other demographics, Gen Z and young Millennials in their 20s are particularly prone to overspending, with 27% admitting to spending beyond the means of their peers, an all-time high for this group. .
Overall, the OCBC Financial Wellness Index for 2024 rose to 61 from 60 last year. This reflects a slight improvement in Singaporeans’ financial habits amid easing inflation and stable economic growth.
Increased investment activity, particularly among older Singaporeans, contributed to this increase, with 88% of respondents currently investing, an increase of 9 points from 2023.
Fixed income securities such as Treasury Bills and Singapore Savings Bonds played a key role, with 43% of investors holding these assets, up 5 percentage points from last year.
Despite these positive trends, disparities in retirement planning persist, especially among DINKs.
Mr. Tan Siew Lee, Head of Group Wealth Management; OCBC said,
“We surveyed Singaporeans over a six-year period and identified some persistent trends in their financial behavior. Better at managing. With basic knowledge and increased financial literacy, Singaporeans are increasingly investing their money.
However, this area remains a weak spot when it comes to long-term financial goals, especially retirement planning. For example, dual-earner, childless (DINK) couples may overlook the importance of preparing for the future. By reviewing your financial plan regularly, you can uncover gaps you may not have noticed. ”
Featured image credit: Edited from freepic
