AIA Singapore’s latest “Live Better Study” has revealed that 83% of Singapore residents are prioritising financial management in response to concerns over economic conditions in 2025.
The survey, conducted in November 2024, explores financial attitudes and preparedness as residents anticipate slower economic growth.
The study indicated notable differences in financial confidence between age groups. More than half (54%) of those aged 18 to 29 feel equipped to manage economic challenges, whereas only 34% of respondents aged 40 to 49 share this sentiment. The latter group, which includes many supporting both children and aging parents, expressed greater financial concerns.
Amid expectations of muted economic expansion, inflation and the rising cost of living remain top concerns, cited by 50% of respondents. Job security (35%) and income stability (34%) were also key financial stressors.
Irma Hadikusuma, chief marketing and healthcare officer at AIA Singapore, highlighted Singaporeans’ resilience and proactive approach to financial planning amid economic challenges.
“This reflects a maturing society which has a better understanding and appreciation of the value of planning early and planning well for their future and that of their loved ones, which is especially noteworthy as we celebrate Singapore’s 60th birthday this year,” she said.
With economic uncertainty persisting, financial preparedness has taken precedence for 54% of respondents, an increase from the previous year. The top three financial priorities identified were:
Insurance was recognised as a key tool for financial stability, with 48% of respondents viewing it as an important aspect of long-term planning. The study also found that 22% of residents intend to allocate more funds to insurance in the coming year, while 27% plan to increase their investment contributions.
To manage financial risks, many Singapore residents are adjusting their spending habits. The study found that 59% plan to cut back on daily expenses and major purchases, while 29% intend to build emergency savings, 28% aim to focus on retirement planning, and 27% are looking to diversify their investments.
Rising healthcare costs remain a significant financial concern. According to the study, 53% of Singapore residents consider medical expenses to be high, yet only 47% feel financially prepared to manage them.
To address potential healthcare costs, 57% of respondents plan to rely on insurance, while 56% will depend on personal savings. Additionally, 49% expect to leverage government healthcare financing and support.
The study highlighted contrasting financial attitudes between younger Singaporeans and those in their 40s.
Optimism about the economy was more common among younger respondents, with 56% of those aged 18 to 29 expressing confidence, compared to 38% of those in their 40s.
Older respondents were also more concerned about inflation and cost of living pressures (63%) compared to younger ones (34%). Debt repayment was another area of divergence, with 28% of those in their 40s prioritising it, compared to 16% of younger respondents.
Spending habits also varied by age group. Among those in their 40s, 47% planned to reduce daily expenses, while 45% intended to limit large purchases. In contrast, only 34% of younger respondents aimed to cut back on everyday spending, with 35% planning to reduce spending on big-ticket items.
Job security remains a key concern across age groups, but strategies to manage employment uncertainty differ.
Among younger respondents (18 to 29), 40% prioritise upskilling, whereas only 28% of those in their 40s do the same. Instead, older respondents place a greater focus on increasing savings (55%) and setting aside emergency funds (46%) to mitigate potential financial setbacks.
Support preferences also reflect generational differences. While 52% of those in their 40s seek career transition services and 47% prefer access to online training, younger respondents (18 to 29) place greater emphasis on mental health and wellbeing support (40%).
Despite these differences, the study suggests that both younger and older Singapore residents share a common goal of financial stability. Their approaches vary, but the emphasis on financial planning reflects a broader trend towards long-term security amid economic challenges.
