Singapore:OCBC study shows financial wellness areas where DINKS fall behind those who are parents

The OCBC Financial Wellness Index 2024 has found that DINKs (Dual Income, No Kids) trail parents on eight out of the 24 OCBC Financial Wellness Index indicators. Notably, retirement planning is a key indicator where DINKs fare considerably worse than parents (score of 33 vs 44).

This challenges the popular perception that DINKs —those who are married, engaged or in a serious relationship, and do not have children and do not support their partner financially—are well ahead of parents in all facets of financial wellness as they have no children to support.

These findings were based on an online survey of 2,000 respondents between the ages of 21 and 65 conducted in August this year. The survey assessed how respondents fared on all 24 indicators, which are measurable actions and outcomes representing critical aspects that influence financial health.

The indicators are further subdivided into 14 key financial actions or outcomes, 5 financial virtues, and 5 undesirable habits. Notably, DINKs were behind parents on all five financial virtues.

The eight financial indicators where DINKs trail parents

DINKs are less prepared for retirement than parents

Given their dual-income, no-kids status, DINKs may not feel the urgency or need to plan for the long term. 58% of DINKs have not started making financial plans for their retirement. In contrast, only 40% of parents have not done so. Among DINKs without a retirement plan, more than half (55%) indicated that they do not intend to start retirement planning in the next 12 months.

Despite not having retirement plans, such DINKs are not compromising on their dream retirement lifestyles. One in four DINKs without a retirement plan desire the most expensive retirement lifestyle.

However, almost nine in 10 DINKs without a retirement plan (85%) underestimate the amount needed for retirement. They want to retire early as well – just over a third (34%) of DINKs without a retirement plan wish to retire by the age of 55, ahead of the official retirement age of 63. In comparison, only a fifth (22%) of parents without a retirement plan have such aspirations.

Seniors in their 60s are choosing the most basic retirement lifestyle

Since the OCBC Financial Wellness Index was launched in 2019, retirement has consistently been one of the poorest performing indicators. This was the case again in 2024, with the score for retirement coming in at 39.

Only 54% of Singaporeans have started making financial plans for retirement, a 6-percentage point decrease compared to last year. They are also planning for retirement later in life.

A quarter of Singaporeans (24%) either intend to start or have started planning for their retirement in their 50s or later. According to the survey, this is because they feel that they can just be “thrifty and save up”, “do not want to think too far ahead” or “still have time to start planning”.

As such, Singaporeans are adjusting their expectations as they approach their golden years.

A growing number (36%) are opting for the most basic retirement lifestyle. This is especially pronounced among seniors in their 60s with almost two-thirds (63%) of them choosing this lifestyle — a sizeable 21-percentage point increase compared to last year. This could be because seniors, being closer to retirement, have a better grasp of which lifestyle is attainable given their personal circumstances. 

Ms Tan Siew Lee, head of Group Wealth Management at OCBC said, “Over the six years that we surveyed Singaporeans, we have identified several enduring trends in their financial behaviours. For one, Singaporeans excel at managing their day-to-day finances, including building savings and managing debt.

“With the basics covered, and increasing financial literacy, Singaporeans are also increasingly putting their money to work by placing it in investments. However, when it comes to long-term financial goals—retirement planning in particular—this area remains a weakness.

“Dual-income, no-kids (DINK) couples, for instance, may overlook the importance of preparing for their future. Regularly reviewing your financial plan can help uncover gaps that might otherwise go unnoticed.”

About the OCBC Financial Wellness Index

The OCBC Financial Wellness Index, launched in 2019, is the most comprehensive measurement of the state of Singaporeans’ financial wellness. Every year, around 2,000 working adults in Singapore between the ages of 21 and 65 are surveyed online.

The Index is based on 10 pillars of financial wellness as defined by the Bank’s wealth management experts. These 10 pillars are Saving Habits, Protection from Financial Emergencies, Regular Investing, Retirement Planning, Regular Reviews, Gambling Habits, Excessive Speculation, Borrowing Money, Spending Beyond Means and Manageable Debt. To assess how respondents fare on these 10 pillars, 24 indicators  — standards and guidelines that are widely-accepted best practices in financial planning — are used.

Based on their responses against these indicators, a score is calculated for each respondent ranging from 0-100. The individual scores from all respondents are then averaged to come up with the overall Index score.

Overall, the OCBC Financial Wellness Index 2024 went up to 61—a one-point increase from last year’s score. This development comes amid easing inflation and Singapore’s improving economic growth in 2024. This can be attributed to an increasing number of Singaporeans investing this year, with nearly nine in 10 (88%) now holding investments, a 9-percentage point increase compared to 2023. The starkest increase was observed in the 60s age group. 89% of those in their 60s are investing—a 17-percentage point increase compared to last year.

To read the report, please click on this link.