The move has proven inadequate as they remain far from financial goal.
For half (58%) of the emerging affluent demographic in Singapore, the savings account is the preferred method by which they can achieve their financial goals, according to a survey by Standard Chartered.
This is higher than the global average (49%) and Hong Kong figures (45%) who opt for the savings route to meet their financial targets despite growing evidence of the inadequacy of the savings scheme.
Relying on earnings has proven to be unproductive as a quarter of respondents feel that they are either very far or far from their top financial goal which could range from providing for their children’s education, investment property and funds to start a business.
“Emerging affluent consumers may find that overreliance on savings accounts and earnings risks delaying achievement of financial goals,” Andrew Chia, head of retail banking at Standard Chartered Bank Singapore said in a statement.
Other than savings account, 21% admitted to using fixed deposits, 17% have embraced equity investments and 15% have turned to mutual funds.
Digital money management is also gaining popularity in Singapore with 65% admitting that they have more control over their money and investments thanks to the proliferation of online banking tools.
Half (53%) have even said that they would invest in financial products online with assistance from an on-demand adviser whilst the same number is ready to accept a high level of risk for a high level of return when investing online.
On its fourth year, the Standard Chartered study examines the view of 11,000 emerging affluent consumers from 11 markets across Asia, Africa and Middle East.
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