Young Singaporeans are saving more than older generations, UOB data shows

Younger Singaporeans are building up savings at a faster pace than older age groups, as concerns around job security, family responsibilities and volatile markets drive a more cautious approach to money management.

Data shared by United Overseas Bank (UOB) shows that people aged between 17 and 39 in the mass and emerging affluent segment now hold a larger share of their assets in savings and fixed deposits than their older counterparts. According to the bank, younger customers keep about 80 per cent of their assets in cash and deposits, compared with roughly 70 per cent for those aged 55 and above.

For many young families, the motivation is practical. Procurement manager Cheah Kun Cheng, 36, who married earlier this year, said he maintains emergency savings equivalent to a full year of expenses, well above the three to six months recommended under the Monetary Authority of Singapore’s Basic Financial Planning Guide.

“Young families have renovation costs, medical needs and childcare to think about. If income stops suddenly, it becomes very difficult,” he told The Straits Times, adding that households with multiple children may need even larger buffers.

UOB group head of personal financial services Jacquelyn Tan said national data reflects a similar trend. Singapore’s household balance sheet figures for the third quarter of 2025 showed currency and deposit holdings rose 10 per cent year-on-year to $696.1 billion, the sharpest increase in more than a decade.

Job market uncertainty has also played a role. Recent layoffs across sectors, along with sudden business closures, have heightened anxiety among younger workers. Kelly Chiew, a 33-year-old mother, said news of retrenchments has prompted her to hold more cash than before.

At the same time, some young investors remain active but cautious. Senior lab technician Dallas Goh, 35, said he has trimmed equity exposure while continuing monthly investments into index funds through dollar-cost averaging.

Wealth advisers note that while caution is understandable, younger workers still have time on their side. With longer investment horizons, regular and disciplined investing can coexist alongside stronger cash reserves, a balance many young Singaporeans are now trying to strike.