Young workers save more than older peers: survey

SINGAPORE: Contrary to popular belief that young Singapore workers spend more than they save, a survey has found that they save more than their older peers.

According to a survey by career builder, JobsCentral Group, 46 per cent of workers who are between 21 and 30 years old said they save more than 20 per cent of their income.

That’s almost double the savings of those who are between 41 and 50 years old.

Only one quarter of workers in this age group said they save more than 20 per cent of their income.

The survey team described these findings as encouraging.

It said older workers may be saving less as they have more financial responsibilities like mortgage and car payments, as well as supporting a family.

For the survey, 20 per cent was set as the benchmark of good savings habits.

Overall, 56 per cent of Singapore workers save less than one—fifth of their income each month, while another 5.2 per cent do not save at all.

The majority spend the bulk of their salary on necessities like food, transport and allowances for parents or children.

About a quarter (24%) spend the bulk of their pay on entertainment, while 15 per cent said they would spend mostly on travel.

One—quarter of those surveyed (25.5%) said they would save 21 per cent to 40 per cent of their salary, up from 19.7 per cent in 2011.

Those earning S$7,000 to S$7,999 per month are big on savings, with 62 per cent most likely to save over 20 per cent of their salary.

This is followed by those who earn S$6,000 to S$6,999 (51%) and S$8,000 to S$8,999 (50%).

The online survey was conducted between September and October 2012, involving about 3,300 respondents.

— CNA/ir