Singapore’s Gen Z wants financial independence, but lacks confidence in managing finances: Visa study

[SINGAPORE] Gen Z consumers in Singapore are keen to achieve financial independence, but lack confidence when it comes to managing their finances, a Visa study published on Thursday (Aug 28) has found.

Nearly half the group of 14- to 27-year-old Singapore residents interviewed said attaining financial independence and security ranked as a major life goal. This was higher than the Asia-Pacific regional average of 33 per cent, said Visa.

The findings of this study come after a Prudential report found that about seven in 10 Singaporean youth aged 16 to 28 lacked retirement plans. That report also indicated that Gen Zs and millennials were relying less on insurance for retirement than those who were older.

Just over a third of Gen Zs polled by Visa said they saved money whenever they could, and nearly 40 per cent saw the importance of saving up for milestone events including marriage and buying a home.

However, a 2024 report from OCBC said Gen Z and young millennials in their 20s in Singapore were more likely than other ages groups to “spend beyond their means to keep up with peers”.

How do Gen Zs in Singapore invest and spend their money?

About 65 per cent of Singapore’s Gen Zs owned a debit card as at November 2024, said the Visa study, though only 32 per cent had a digital bank account.

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“Slightly over half of them choose their payment method based on the rewards offered,” said Adeline Kim, Visa’s country manager for Singapore and Brunei.

While financial planning was high on their priority list, only 36 per cent of Gen Zs said they felt confident in managing their finances. Under a third said they were familiar with investing their money.

About 68 per cent said they were most familiar with saving money, echoing Prudential’s findings where 62 per cent of Gen Zs said bank deposits would be their main source of retirement funds.

Among those who invest, Visa found that stocks and equities were the most popular investment tools for Gen Zs, followed by trust funds and cryptocurrency. However, an Independent Reserve poll found that only 29 per cent of Singapore residents older than 18 owned any crypto in 2025, down from 40 per cent the previous year.

Nearly a third of Gen Z respondents in Visa’s study added that they started their investment journey because their circle of friends started doing so.

The study also found that 22 per cent of Gen Zs in Singapore wanted to own fixed deposits in the subsequent year, while 20 per cent of them wanted to own a credit card to accrue rewards.

The findings were based on 501 quantitative interviews with 560 Gen Z consumers in 14 markets, including Singapore.

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