Most Gen Zs lack retirement plans but overlook insurance: Prudential Singapore

[SINGAPORE] While it is never too late or too early to start planning for retirement, about seven in 10 Gen Zs in the Republic aged 16 to 28 said they do not have a retirement plan.

Yet, more than half are confident that they will be able to retire well and cover daily necessities, healthcare and other expenses. This proportion is higher than that of millennials aged 29 to 44, at 45 per cent, and Gen Xs aged 45 to 55, at 38 per cent.

The findings are based on a survey of 1,000 Singapore residents aged 17 to 76, commissioned by insurer Prudential Singapore in July 2025. The study highlights how retirement mindsets are shaped by changing needs and shifting priorities across different life stages.

It also found younger Singaporeans becoming more investment-savvy, venturing into exchange-traded funds (ETFs) index mutual funds and other products.

“Many overlook insurance, which is a key part of any long-term financial portfolio,” said Jeff Ang, chief executive officer of the insurer’s financial advisory arm Prudential Financial Advisers Singapore, in an interview with The Business Times.

“Health insurance is best secured while you are still in good health, and other income and protection plans can help grow and safeguard your savings from unexpected costs as you age,” he added.

Financial planning delayed

The Prudential survey found that Gen Zs and millennials rely less on insurance for retirement compared to older generations.

Ang urged these younger groups to include protection as part of their long-term financial strategy. He cautioned that with people living longer, retirement could stretch 30 years or more.

When asked how they would fund their retirement, most respondents pointed to Central Provident Fund (CPF) savings, with two in three citing it, and more than half (62 per cent) pointing to bank deposits as their main sources.

They also plan to tap other wealth-generation options such as stocks, index mutual funds and ETFs tracking indices such as the S&P 500, as well as bonds, insurance policies and investment-linked plans.

While CPF and bank savings provide a solid base, Ang said they may not be sufficient on their own.

“To build lasting financial security, Singaporeans may consider options such as diversified investments and passive income streams to support their lifestyle over time,” he said.

This makes early action important, especially since Singaporeans across all ages said they should have started financial planning five years earlier.

Three in four respondents cited the high cost of living as a key obstacle to achieving financial goals, while 56 per cent pointed to healthcare costs and half highlighted insufficient income growth.

Gen Zs aspire towards multiple “micro-retirements”

The Prudential survey revealed clear generational differences in retirement planning. Almost all baby boomers (94 per cent) said they should have started financial planning earlier at the median age of 28 instead of 40.

Ang noted that many baby boomers aged 55 and above are retired or nearing retirement, and tend to prioritise healthcare security and ensuring their savings last a lifetime.

In contrast, many Gen Zs are still students or early in their careers and often delay financial planning to focus on growing their earning potential, he said.

Gen Zs also have distinct work and lifestyle priorities. Four in 10 aim to generate multiple income streams, while 60 per cent of them value career advancement over work-life balance – more so than older generations.

About one in three hope for remote work opportunities to combine work and travel, and 22 per cent are interested in multiple “micro-retirements.”

“This generational contrast is a wake-up call: Optimism is great, however without early action, it is hard to turn retirement aspirations into financial security,” said Ang.