Family values influence financing decisions in Singapore.
Majority of Singaporeans or 77% are providing financial support to their family, reflecting strong traditional family values that affect their decisions, HSBC revealed.
According to its new Power of Protection study, 45% still provide for their grownup children over 18 years old, whilst 72% financially support their living parents.
"Providing this level of support for family members can take a toll on Singaporeans’ finances, lifestyle and emotional well-being," HSBC said.
Of those that provide financial support, 50% of disposable income is spent on others.
Around 46% also feel that they have to put off their own aspirations, and 42% feel guilty spending money on themselves instead of their family.
"However, the ‘feel good’ factor of being able to provide the family more than make up for the emotional strain," the bank said.
More than half or 57% of Singaporeans think they are good providers whilst 54% feel they are appreciated by their family members.
HSBC Insurance (Singapore) chief executive officer Ian Martin said, "This long-term financial dependency puts them in a challenging position. It is especially so for the ‘sandwich’ generation who are in their 30s and 40s. Not only do they need to provide for their growing children, but they are also in many cases supporting their aged parents. In doing so, the danger is that they may leave themselves inadequately prepared for their own retirement and health care needs."
Nearly two-thirds or 68% of Singaporeans also said they would prioritise their children's education over their retirement fund, whilst 66% said they would put their parents' health over themselves.
However, only 46% expect their situation to improve in the next three years, compared to 54% of their global peers.
As for those that are already feeling that they are not managing at all well or just about managing with support from family or social benefits, 51% think that their position will worsen compared to 28% of their global peers.
Another finding is that 62% said they do not have insurance that would pay them a regular sum in the event of a serious illness or accident.
About 51% do not have insurance products that would pay out a lump sum to take care of their family or beneficiaries in the event of death or whilst 31% do not have these available when in the case they have a critical disease.
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