Job insecurity and rising costs push young adults to save beyond official guidelines
Financial caution is shaping the money habits of young Singaporeans, as uncertainty around jobs and rising living costs prompt many to save more aggressively than advised.
Rising Savings Beyond Official Guidelines
Procurement manager Cheah Kun Cheng, 36, exemplifies this growing trend. Recently married earlier in 2025, Mr Cheah maintains a full year’s worth of emergency funds, exceeding recommendations set out in the Monetary Authority of Singapore’s Basic Financial Planning Guide. He believes this buffer is necessary to manage life’s growing uncertainties.
Financial Pressures on Young Families
Speaking to The Straits Times, Mr Cheah highlighted that young families face mounting commitments, including home renovation costs and unforeseen medical expenses. With children involved, a sudden loss of income could quickly become overwhelming, making extra savings feel less like a choice and more like a necessity.
A Broader Shift Among Young Adults
This cautious mindset is increasingly common among Singaporeans aged 17 to 39. Concerns over job security, potential income loss, and broader economic instability have driven many to prioritise savings over spending or investing, even when it means holding more cash than traditionally advised.
Data Reflects Growing Cash Holdings
According to UOB data, young people in this age group now hold about 80 percent of their assets in savings. National statistics further reinforce this trend, showing a 10 percent increase in currency and deposits to S$696.1 billion in the third quarter of 2025, reflecting a nationwide tilt toward liquidity.
Balancing Safety and Long-Term Growth
Despite heightened caution, financial advisors urge balance. Providend’s chief executive Tan Chin Yu noted that young families should continue investing regularly, even amid uncertainty. With a longer investment horizon, younger adults are better positioned to ride out market volatility while building wealth over time.
The challenge for young Singaporeans lies in managing fear without sacrificing future growth. While larger emergency funds provide peace of mind, experts stress the importance
Sources: Straits Times (2025)
Keywords: Emergency Funds, Job Security, Young Adults, Savings Rate, Financial Stability
