Young workers save more than older peers: survey

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#1
How much of your take-home pay do you save? Mine is around 45% to 50%.

Young workers save more than older peers: survey
Date : 22 January 2013 1606 hrs (SST)
URL : http://www.channelnewsasia.com/stories/s...52/1/.html


SINGAPORE: Contrary to popular belief that young Singapore workers spend more than they save, a survey has found that they save more than their older peers.

According to a survey by career builder, JobsCentral Group, 46 per cent of workers who are between 21 and 30 years old said they save more than 20 per cent of their income.

That's almost double the savings of those who are between 41 and 50 years old.

Only one quarter of workers in this age group said they save more than 20 per cent of their income.

The survey team described these findings as encouraging.

It said older workers may be saving less as they have more financial responsibilities like mortgage and car payments, as well as supporting a family.

For the survey, 20 per cent was set as the benchmark of good savings habits.

Overall, 56 per cent of Singapore workers save less than one-fifth of their income each month, while another 5.2 per cent do not save at all.

The majority spend the bulk of their salary on necessities like food, transport and allowances for parents or children.

About a quarter (24%) spend the bulk of their pay on entertainment, while 15 per cent said they would spend mostly on travel.

One-quarter of those surveyed (25.5%) said they would save 21 per cent to 40 per cent of their salary, up from 19.7 per cent in 2011.

Those earning S$7,000 to S$7,999 per month are big on savings, with 62 per cent most likely to save over 20 per cent of their salary.

This is followed by those who earn S$6,000 to S$6,999 (51%) and S$8,000 to S$8,999 (50%).

The online survey was conducted between September and October 2012, involving about 3,300 respondents.

- CNA/ir
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#2
Yet another skin deep article from our national papers...

Think young people save more as a % because the major expenses (house, wedding, kids and maybe cars) haven't kicked in yet.

I used to save almost 80% of my income, just after buying a house, proposal and factoring upcoming wedding expenses... I'd be lucky to stay above 60%.
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#3
older people(40-55) just need to save 10% which is maybe more than 50% of those just starting to work...
The thing about karma, It always comes around and bite you when you least expected.
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#4
Currently 70% saving if total income counted exclude Tax ... Smile

Just my Diary
corylogics.blogspot.com/


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#5
(22-01-2013, 08:34 PM)corydorus Wrote: Currently 70% saving if total income counted exclude Tax ... Smile
Thats impressive!!! Possibly 6-figure salary....
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#6
No comment ... I wrote something on basic needs.

"Portfolio Size Matters

Everyone has a mouth, a pair of ears and eyes. And each of us need a basic amount of water, food and air to breath. When come to basic necessity to survive the minimum sum tends to converge.
"

Anything more thus can go to saving.
http://corylogics.blogspot.com/2013/01/c...maths.html

Sorry for some reason, my MS surface do not works well with the forum tool on link.

Just my Diary
corylogics.blogspot.com/


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#7
I have a big issue on savings and will appreciate advice from forumers. My saving rate is relatively about 5% of my income (not counting CPF savings) as I take into consideration that money to be spent on wedding, housing and renovation will not be considered as saving. In other words, my saving defintion is money that is added to my net worth. Does anyone share a similar experience with me?
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#8
MrEngineer, I am no expert. Neither do I consider myself rich. In my article I have indicated career because it can build up the seed funds needed as it gives more saving room. When I start invest more actively later, the Xirr basically compound the seed fund. This are the twin pillars to build up.

Just my Diary
corylogics.blogspot.com/


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#9
my goal is to only spend 10% of my income...when I go over that I don't feel too good...
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#10
(22-01-2013, 10:16 PM)mrEngineer Wrote: I have a big issue on savings and will appreciate advice from forumers. My saving rate is relatively about 5% of my income (not counting CPF savings) as I take into consideration that money to be spent on wedding, housing and renovation will not be considered as saving. In other words, my saving defintion is money that is added to my net worth. Does anyone share a similar experience with me?

It is quite normal to go broke in the initial years.
Actually, if the parents, in-laws and wife are fine with no wedding dinner, you will have one less major expenditure.

Opting for a simpler renovation will help too.
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