Dual-income, no-kids (DINK) couples in Singapore are not as financially prepared as commonly perceived, according to the OCBC Financial Wellness Index 2024.
The survey revealed that DINKs lagged behind parents on eight of the 24 financial wellness indicators, with significant gaps in retirement planning, financial discipline, and long-term financial preparedness.
DINKs scored 33 on retirement planning compared to 44 for parents, highlighting a key area of concern.
The findings were based on an online survey conducted in August 2024 among 2,000 Singaporeans aged 21 to 65.
The survey assessed measurable actions, financial virtues, and undesirable habits influencing financial health. DINKs underperformed across all five financial virtues, including reviewing financial plans annually, seeking professional advice, and sticking to a budget.
Only 39% of DINKs reviewed their financial plans annually compared to 50% of parents, while 21% of DINKs sought professional financial advice, lagging behind the 32% of parents who did so.
Additionally, just 63% of DINKs adhered to a budget, compared to 70% of parents.
When it came to ensuring that finances would be passed on in the event of death, 57% of DINKs had made arrangements, compared to 82% of parents.
DINKs and the Retirement Reality Gap
Retirement planning emerged as a significant shortfall for DINKs.
While 58% of DINKs have not started planning for retirement, only 40% of parents reported the same. Among those without a plan, 55% of DINKs indicated no intention to start one within the next year.
Despite their lack of planning, DINKs aspire to ambitious goals, with 34% aiming to retire by 55, compared to 22% of parents.
However, nearly 85% of DINKs underestimated the financial requirements for retirement, and one in four without a retirement plan expressed a desire for the most expensive retirement lifestyle (Lifestyle C), which includes private property, high-end cars, and frequent international travel.
Seniors, in contrast, are opting for the most basic retirement lifestyle (Lifestyle A), with 63% of those in their 60s choosing this option.
This marks a significant 21-percentage point increase from last year, reflecting a more conservative approach to retirement planning as they near retirement age.
DINKs Dilemma in Balancing Today’s Lifestyle with Future Security
DINKs also struggled with generating regular passive income, scoring 22 compared to 26 for parents, reflecting a lack of focus on long-term financial stability.
On broader financial health indicators, DINKs outperformed parents in some areas, including saving regularly (96 vs. 93), managing unsecured debt well (95 vs. 87), and paying off housing loans (78 vs. 70).
However, these short-term wins were overshadowed by weaker long-term planning.
The survey also highlighted undesirable financial habits. For example, 15% of DINKs reported spending beyond their means to keep up with peers, compared to 21% of parents.
Additionally, 14% of DINKs reported paying only the minimum sum on their credit cards, far below the 31% of parents who did the same.
Among other demographics, Gen Zs and young Millennials in their 20s were particularly prone to overspending, with 27% admitting to spending beyond their means to match their peers, an all-time high for this group.
Overall, the OCBC Financial Wellness Index rose to 61 in 2024, up from 60 last year, reflecting slight improvement in Singaporeans’ financial habits amid easing inflation and steady economic growth.
Increased investment activity, particularly among older Singaporeans, contributed to this rise, with 88% of respondents now holding investments—up 9 percentage points from 2023.
Fixed-income securities such as Treasury Bills and Singapore Savings Bonds played a key role, with 43% of investors owning such assets, a 5-percentage point increase from last year.
Despite these positive trends, gaps in retirement planning remain persistent, especially among DINKs.
Tan Siew Lee, Head of Group Wealth Management, 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.”
Featured image credit: Edited from Freepik
