Millennials in Singapore are identified as the country’s new “sandwich generation”, according to Etiqa Insurance Singapore’s 2021 Protection Survey Report, which notes that younger millennials have now joined the workforce.
The report reveals a picture of millennials at odds with their reputations, perceived by their older counterparts as unruly, empowered, and overly materialistic. Instead, millennials personify a generation under increasing pressure in all aspects of life.
The report, citing published data, also notes that fewer millennials in Singapore marry and those who do choose to marry later. In Singapore, the average age of marriage was around 29 for women and around 30 for men in 2020.
Millennials also have fewer children later in life with a median age of 31 for first-time mothers in 2020. While starting families and raising children, millennials also plan to have a homework assignment. look after their parents, who are approaching retirement age and will soon be dependent on them financially. With life expectancy and medical and living costs at an all time high, the burden is growing. All of this as millennials grapple with the growing need to start planning for retirement.
Among the main sources of financial concerns, listed by respondents to Etiqa Insurance Singapore’s survey, is financial support for their aging parents (48%) and financing their own retirement (60%). Both of these concerns could be linked to the rising cost of living and life expectancy here.
The underlying survey was conducted in July this year, collecting responses from 815 people aged 25 to 40. The study aimed to shed light on the financial commitments and considerations of millennials when purchasing life insurance.
In just one decade from 2010 to 2020, local life expectancy increased from 81.54 to 83.90 years. As this number increases, the time it takes for millennials to support their parents and possibly themselves into old age grows longer.
As Millennials juggle their responsibilities to young children and aging parents, the insurer’s challenge is to provide competitive life insurance and critical illness coverage tailored to the emerging needs of Millennials.
Health care costs
Regarding the care of aging parents, 4 in 5 are worried about paying their health expenses (82%) and 3 in 5 are worried about childcare costs (60%). Few older parents can recognize the risk of outliving their savings, or be willing to increase protection in old age because of the high cost. Millennials can still ensure that their parents will have the funds they need, in the event of an accident or otherwise, by purchasing sufficient life insurance coverage for themselves.
Meanwhile, the annual medical inflation rate of 10% offers little comfort to those already struggling to manage their finances. As a result, 1 in 2 millennials see their own health expenses (54%) as a major source of financial worries, and almost as many fear losing their ability to work due to serious illness (45%) and beyond. to lose their income.
3 in 4 millennials have life insurance policies their parents wrote when they were young, or when they were adults. For those who said they did not have life insurance, the most common reasons were that they could not afford the additional expenses (36%) and life insurance is too expensive (31%).
These responses demonstrate that most without life insurance assume the coverage is too expensive and not worth the price.
Ms. Shirley Tan, Chief Marketing Officer of Etiqa, said: “Our results show that Millennials are sadly still poorly understood in Singapore and their financial needs are still under-documented. In order to evolve over time, financial institutions must begin by recognizing the uniqueness of each generation. and various needs and structure financial planning solutions to meet them. We believe the results of our protection survey position us better to provide such solutions to our millennial customers, such as through our recent and upcoming protection launches.