SINGAPORE – Media OutReach – 23 August 2023 – Young people today have a more holistic view of financial success compared to yesterday when the traditional ‘5 Cs’[1] were the symbol of having succeeded in life. More than three in four Gen Z and Millennials (76%) say that for them, financial success means having the financial freedom to pursue the lifestyle they desire and to be financial worries (Figure 1). That’s according to a survey commissioned by Prudential Singapore (“Prudential”) that explores the priorities, aspirations and goals of Singapore residents aged 16-29 who are just starting their careers.
Work-life balance also emerged as an important definition of financial success for 65 percent of the 1,000 respondents. This shows that while having financial security is important, young people also want a fulfilling life that allows them to devote time to aspirations such as traveling the world, giving back to society (Figure 2) and giving back. priority to their personal well-being (Figure 3).
The fact that work-life balance is a priority also suggests that young people do not see hustle and bustle (putting work first) as their primary strategy for financial success. Instead, they seek to grow their wealth through other sources such as investments and passive income, so they have more time to live life to the fullest. More than half (58 percent) said they would like to retire early (Figure 2).
Mr. Ben Tan, Director of Business Development, Prudential Singapore, said, “Owning the 5 Cs, including material possessions such as a car or condominium, was once the measure of whether one was successful in life. According to our study, this definition has broadened, with young people today taking a more holistic view of life. They want to achieve financial freedom, and for them that means having it all – wealth as well as the time to devote to loved ones, personal passions and well-being.
“We are living longer and the cost of living is rising. Therefore, it is important to take steps to achieve financial freedom early in your career, as it gives you more leeway to prepare for future challenges. milestones such as buying a home, starting a family, and retiring.Early financial literacy is also crucial, as it lays the foundation for a healthy financial future.
How young people are working towards financial freedom
According to the Prudential survey, young people prioritize building savings (61 percent), growing their wealth (49 percent) and investing to grow their money (41 percent). However, planning for retirement and being properly insured do not top the list, with less than one in five choosing them as priorities (Figure 3).
Commenting on the importance of having sufficient protection, Mr. Tan said, “Insurance is an important part of financial and retirement planning because it not only provides protection for you and your family, but also helps to build your wealth and cushion the impact of inflation. If you are adequately insured when you are young and healthy, you can achieve financial freedom while pursuing your life goals with peace of mind knowing that you are well protected against unexpected life events.
About the survey
This poll was commissioned by Prudential and conducted by Milieu Insight and surveyed 1,000 Singaporean residents aged 16-29 who are still studying or working. Responses to the online survey were collected in July 2023.
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