Singaporeans are financially ill-prepared if they lose their jobs, and they can do a lot more to improve their financial health, according to two recent surveys.
The Citi Fin-Q (Financial IQ) survey conducted by Citibank Singapore polled 400 respondents online in mid-October, just a few weeks after the financial crisis took a drastic turn.
About 20 per cent of respondents said their savings would last only four weeks or less in the event of a job loss. But the average Singaporean has three months of reserve savings to live on.
Mr Salman Haider, Citibank's managing director and head of wealth management, said: 'The findings clearly show that Singapore residents need to improve their financial health, especially in areas such as saving for emergencies or in the event of an unforeseen job loss.'
It has not helped that the higher cost of living has made saving more difficult for Singaporeans. As a result, many have no choice but to curtail their expenditure.
About 60 per cent have cut back on dining out, while more than 40 per cent have postponed holiday plans or put off buying big-ticket items.
In another online survey, conducted last month by French insurer AXA, 70 per cent of the 100 respondents recognised that Central Provident Fund savings are insufficient for their golden years.
The survey's objective was to find out the retirement and savings aspirations of Singaporeans.
About half anticipated needing a monthly sum of $1,501 to $3,000 for living expenses in retirement, while a third projected that they would need between $3,001 and $4,500.
More than half, or 57 per cent, of those surveyed said they wanted to set aside savings of more than $500,000 by age 65.
On a scale of one to 10, with 10 being the most confident, respondents rated their confidence level in achieving their targeted savings goal at 5.6 on average, under the current economic climate.
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