OCBC Bank launches Singapore’s first Financial Wellness Index

Ms Suriati Jamil, in her early 30s, is living life to the fullest. Or so she thought.

The client solutions manager is happy pursuing a challenging career at a creative agency where she manages and presents pitches, and is actively involved in brainstorming sessions for exciting branding campaigns.

When she is not getting her creative juices flowing at work, she tackles her busy social calendar with gusto. She enjoys dining out with friends, going on frequent travels and relishing new experiences such as attending festivals and theatre performances.

Everything seems to fall in place for her, but on the financial front, things are not so rosy. Although she has savings to her name, her concerns about her financial health and a fear of living from paycheck to paycheck contribute to her worries for her future.

Ms Suriati is not alone with such financial concerns.

Like 39 per cent of female respondents polled for OCBC Bank's Financial Wellness Index - which aims to find out how Singaporeans are taking care of their wealth - she has no investments to her name.

She is also no different from the 54 per cent polled who have no passive income, and the 43 per cent who do not know the best way to grow their wealth.

These highlights, and more, were gleaned from among 2,000 working adults between 21 and 65 years old. They include those who are single and married, as well as those who are typically known as the sandwiched generation - people who support their ageing parents and their children at the same time.

Singaporeans on average scored 63 out of 100 in the study. Some 34 per cent do not invest, while 36 per cent of investors have investments not performing to their targets. Out of those who invest, 27 per cent speculate excessively for quick gains while 40 per cent do not carry out any research or blindly follow tips from family and friends.

The poll also revealed that people of various age groups scored differently on the OCBC Financial Wellness Index, which is a first in Singapore in terms of comprehensiveness of scope. The index defines financial wellness based on 10 pillars such as saving habits, retirement planning and manageable debts.

It also involves 26 indicators including factors including regular rate of savings, investments, financial retirement planning and having enough funds in times of crisis.

Those in their 20s are disciplined savers who started investing early, but are unsure of how to grow their wealth. They are also likely to take excessive risks when investing.

Meanwhile, those in their 30s actively try to grow their wealth, but have problems balancing debts with wealth accumulation.

Those in the sandwiched generation try to do more to achieve financial stability. However, they struggle to meet the needs of their children and parents, largely due to insufficient planning and financial management.

As for those aged 55 years old and above, they are not doing as much with retirement planning to maintain the lifestyles they desire.

The message is clear: while more Singaporeans are taking their health seriously, they need help with their wealth. They have nailed the basics of putting part of their income away as savings and proactively seeking medical insurance coverage, but fall short when it comes to making their money work harder for them.

OCBC Bank's first-of-its-kind OCBC Financial Masterclass is designed to address the gaps mentioned, in a structured manner.

Modules are helmed by OCBC Bank's team of financial experts, including Tan Siew Lee, Head of Wealth Management Singapore and Vasu Menon, Executive Director of Investment Strategy, and cover topics such as the tricks of saving, managing debt, protecting oneself from financial emergencies and overcoming the fear of investing.

The index is an extension of OCBC Bank's efforts to truly understand its customers' needs. In 2016, it launched OCBC Life Goals, a financial advisory tool to help consumers plan for their life goals - including retirement and children's education - and to understand the financial gaps they face in meeting these goals.

Get more inspiration to better manage your finances at ocbc.com/simplyspoton.

Can't find the time to sit through the OCBC Financial Masterclass? Here are some quick tips you can adopt.

Strike a balance
Managing your money is about finding a comfortable and sustainable balance on how much you spend, save and invest in the long run.

Manage your debt
Like exercise, the right amount of debt makes all the difference to your finances and your health. Keep your debt at a manageable level.

Diversify your investments
Never stake all your hard-earned money on one company; choose different types of investments and seek out a spectrum of companies to invest in.

Get insured
Planning for "what ifs" is crucial given how unpredictable life is, especially when it comes to your health. Medical insurance is the most basic level of protection one needs to have.

Don't rely on coffeeshop talk for investments
Coffeeshops are a great place to pick up tips - on fashion, diets and dating, but not necessarily on investments. When it comes to your portfolio, carefully conduct your own research.

For more OCBC Wealth Hacks, click here.