Only a third of Singaporeans have critical illness coverage

A quarter of Gen Zs did not meet MAS’ financial planning guidelines.

Whilst Singapore consumers remain optimistic about their economy and personal finances, concerns regarding financial preparedness show inadequate insurance coverage amongst Singapore’s youth. 

The study shows that only 37% of respondents have critical illness coverage, with this figure dropping sharply to 17% amongst Generation Z, UOB’s latest ASEAN Consumer Sentiment Study (ACSS) 2024 revealed.

Even more concerning is the low percentage of Gen Zs who have insurance for death and total permanent disability—just 13%, compared to 22% amongst the broader population. Alarmingly, 12% of Gen Zs reported having no insurance at all.

This lack of protection poses a risk, particularly as 26% of Gen Z respondents failed to meet any of the financial planning guidelines outlined by the Monetary Authority of Singapore (MAS) and the financial industry's Basic Financial Planning Guide. 

These guidelines recommend allocating sufficient funds for emergencies, securing adequate insurance, investing for the future, and making necessary legacy plans like wills and CPF nominations.

The study emphasised the need for increased efforts to boost financial literacy and preparedness amongst Singapore’s younger population. Whilst they show a positive trend in setting aside funds for investments—with 55% of Gen Z and 62% of Gen Y adhering to the guideline of investing at least 10% of their income—the gap in insurance coverage remains an issue.

The survey polled 5,000 individuals aged 18 to 65 years old from Indonesia, Malaysia, Singapore, Thailand and Vietnam. The survey was conducted online from 14 May to 6 June 2024 in partnership with global management consulting firm Boston Consulting Group.