Six out of 10 Asians are financially aware, prioritising health and income security: Survey
Millennials are prioritising emergency savings more.
About 60% of Asians are proactively saving for health and income-related emergencies, signalling a more financially aware region, Prudential revealed in a survey.
The survey called "Empowering Aspirations: Financial Preparedness in Asia," sheds light on how providing a financial safety net empowers individuals to live more fulfilling lives. It explores saving habits, insurance adoption, and aspirations for a secure future.
The survey found that 61% of respondents attribute increased savings to the pandemic's social and economic impact.
“We are currently living in an uncertain world where the pandemic has highlighted the importance of being prepared amid constant disruption. With this in mind, we undertook the survey to understand the impact that having a financial safety net can have on individuals, and their ability to pursue personal and professional aspirations.” Priscilla Ng, Group Chief Customer and Marketing Officer, Prudential, said.
Among different generations, millennials lead in prioritising emergency savings at 74%, followed by Gen-X at 62%, Gen-Z at 49%, and baby boomers at 49%.
Malaysia is the leader in savings, with 67% actively allocating funds for emergencies. In contrast, only 52% of people in Hong Kong save for emergencies.
Insurance plays a vital role in financial security, Prudential said, with 80% having health insurance and 46% having income replacement protection. Insured individuals are more inclined to save for emergencies, with 66% doing so, compared to 39% without insurance.
Over three-quarters of respondents (76%) cited a crucial safety net as the main reason for having insurance. Other motivations include protection against prevalent diseases (62%) and family history of specific illnesses (50%).
If not for emergencies, 49% of respondents would prioritize saving for retirement, 31% would travel more, 26% would invest in property or home improvements, and 28% would invest in better education for their children.
The survey collected responses from 5,000 individuals from Hong Kong, Indonesia, Malaysia, Singapore and Thailand.