Only a third of Singaporeans and permanent residents have enough funds to last them more than six months if they were to lose their jobs now, according to an OCBC survey released on Monday.
An Oversea-Chinese Banking Corporation (OCBC) survey conducted in Mid-May found that about 18 per cent have enough savings to cover one month of expenses.
The bank surveyed 1,000 working adults aged between 21 and 65, earning from $2,000 a month. Around half had already suffered wage cuts, were prescribed no-pay leave or had their commission earnings reduced.
“The survey aimed to understand the impact of the coronavirus crisis on residents’ financial well-being”, OCBC said.
More than half the respondents said their savings had taken a hit. Around 20 per cent indicated their savings fell by more than 20 per cent, while one in three said the decline was up to 20 per cent.
Another 20 per cent were maintaining their savings level. But some managed to save more, with 5 per cent of the respondents saying savings had increased by more than 20 per cent.
The remaining 20 per cent said that their savings had gone up by up to 20 per cent.
The respondents indicated their retirement plans were impacted as well, with the Covid-19 pandemic affecting people across the age groups differently.
A third of those aged between 40 and 54 said they had cut their retirement savings, while 23 per cent of those in their 20s, who had signed up for a financial plan, indicated they have put aside more money for retirement.
OCBC found that the pandemic had also impacted investment strategies with two in five saying they were planning to downsize their portfolios. Around 16 per cent said they will cut their investments by more than 20 per cent.
The respondents did, however, express hope for the next six months.
While around 55 per cent said that they were worried about their income and job situation now, 38 per cent said they would continue to worry about income stability and 35 per cent about job security by December.
However, many Singaporeans are taking steps to future-proof themselves. One in two are attending more online courses than before, and three in five are working harder than before the virus hit, with more than half of them doing so to keep their jobs. About a third intend to take on or have taken on a second job.
“It is encouraging that some are doing the right thing to boost their financial health, by continuing to save, spending prudently and making sound investments according to their risk appetite and financial circumstances,” said Tan Siew Lee, OCBC Bank’s Head of Wealth Management Singapore.
“Events such as the current COVID-19 crisis, like SARs and the Asian Financial Crisis, will pass. If you are currently experiencing discomfort from the situation, take the opportunity to learn from the experience and do not give up,” she added.