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Taking care of your future self: Manulife Asia Care Survey 2024

 

Have you made the time to set goals for your future self?

The Manulife Asia Care Survey 2024 shows how people across Asia perceive their current and future physical, mental, and financial well-being, and how Manulife can be their partner for progress. Manulife surveyed more than 1,000 Singapore respondents in January 2024.

Singapore respondents have high aspirations for their future physical, mental, and financial well-being but they are unsure if they will achieve  their desired levels of  well-being.

They feel most unprepared for their 'financial' well-being in ten years, with 15 points' difference between their 'desired' and 'expected' future well-being.

Singapore respondents also rank mental well-being as the most important and financial well-being as the least important. In fact, mental well-being, physical health, and future health indicators are equally important, as mental health can also serve as a sign for future physical ailments.

Let's take a deeper look at what challenges they are facing:

Protecting your health is protecting your wealth.

Having good physical and mental health can positively impact one's financial health. It can help prevent chronic illnesses, reducing the need for costly medical treatments and medications. This can result in lower healthcare expenses and less disruption to financial goals. Similarly, knowing that you are financially prepared for the future will give you a peace of mind.

People in their 40s have the least confidence in their physical and mental well-being

When rating their future well-being in 10 years, the optimism decreases with age in terms of both physical and mental well-being. This reflects that Singapore respondents are less confident in their quality of life as they get older.

Age Physical
(score out of 100)		 Mental
(score out of 100)
25-29 73 74
30-39 71 72
40-49 66 69
50-60 69 71

Cancer and stress worry Singapore respondents the most

The younger generation (aged 25-29) have more concerns about physical and mental conditions such as liver diseases, flu and pneumonia, overweight, stress and anxiety.

Singapore respondents aged 40-60 tend to be more worried about diabetes (aged 40-49), heart disease, stroke and cancer. Addressing these age groups' health needs and concerns  is critical to improve and support their future well-being. 

Physical illnesses Mental illnesses
43% Cancer 41% Stress
38% Heart disease 32% Anxiety
32% Diabetes 29% Sleep disorders
34% Stroke 29% Depression
21% Liver diseases 23% Loneliness
20% Overweight 23% Cognitive impairment
20% Flu and pneumonia  
19% Chronic lower respiratory disease  
15% Renal disease  

What can I do?

76% of respondents are taking actions to change their current lifestyle to prevent sickness and achieve a better health condition for the future 

According to World mental health report1, our mental health is as important as our physical health. People who are mentally unwell may carry a variety of risks, including physical impairments, loss of productivity, and loss of social interactions. Some of these may be present already, while some may develop in the long term.

It is vital to address these mental health issues early on and ensure you have access to the necessary support and resources to maintain your well-being.

For example, stomach issues, muscular-skeletal, and skin complaints are often suffered by people who have been under prolonged stress. Dealing with anxiety at the outset could help prevent the onset of these conditions.

…and get a good night's sleep

Understanding the role of sleep in maintaining your health can help you prioritise a good night's rest. This will help you today, tomorrow and long into the future.

But remember to maintain adequate insurance cover.

Over 64% of respondents agree that having sufficient insurance coverages can help them achieve their desired level of physical and mental well-being in the future.

Suitable health checks and medical services are people's top insurance policy need.

  • 38%

    Seeks recommendations on suitable health checks and medical services suitable for their health situations or life stages.
  • 37%

    Wants regular insurance policy review.
  • 28%

    Is keen to learn about different ways to monitor their health.

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What problems will Singaporean face?

These are the top 3 financial goals of Singaporeans

  • 35%

    Enough emergency savings
  • 34%

    Enjoy financial freedom or security after retirement
  • 29%

    Enough savings for my healthcare or medical needs

The top three long-term financial goals Singaporeans want to achieve are having enough savings for emergencies, having sufficient funds for their healthcare or medical needs, and enjoying financial freedom or security after retirement.

Over 80% thinks that the financial threat comes from rising healthcare costs

  • 81%

    Rising healthcare costs
  • 81%

    Rising cost of living
  • 77%

    Economic slowdown
  • 73%

    Increase in interest rate

Singaporeans are most concerned about rising healthcare and living costs. At regional level, people believed that  healthcare costs have increased by more than 20% in the past 12 months. This leads to the huge gap between their future expected and desired financial well-being.

At the same time, with the rising cost of living eroding people's purchasing power and reducing disposable incomes, Singaporean perceive the highest inflation rate in grocery costs and eating out spending. 

In response, over 56% chose to reduce their non-essential spending, instead of reducing their investment and insurance expenses.

73% of respondents agree that even in an inflationary environment like now, insurance is still essential and necessary. 75% agree it is important that their insurance policy coverage and benefits keep up with the rising costs of living.

How will people achieve their financial goals under inflation?

Cash is still king when inflation bites

68% Cash savings or bank deposits

42% CPF

40% Investment in stocks, bonds, and other similar financial products

38% Savings or endowment insurance

31% Life insurance

31% Health and critical illness insurance

 

Nearly 70% of respondents rely on cash savings and bank deposits rather than other investment tools to achieve their goals.

Over 50% of respondents are reducing non-essential spending to shield themselves from inflation

Cuts in daily life spending Cuts in investment and insurance spending
56% Reduced spending on non-essential items 14% Reduced investment in different financial products
55% Cut back on dining-out expenses 13% Cut or reduced my own insurance expenses
41% Reduced the amount of entertainment activities 10% Cut or reduced my family's insurance expenses
34% Lowered consumption of luxury products or services  

What can I do?

Take care of your cash by investing it. 

History tells us that equities, bonds, and some income-oriented investments have the potential to deliver higher long-term returns than cash and can potentially outstrip inflation.

While investment returns for these asset classes have varied from year to year, over the long term they've compounded to reach levels that tend to beat inflation and are higher than the current nominal rates for time deposits.
Invest regular amounts to smooth the effects of market volatility.

To navigate any market volatility, investors can also diversify their risk exposure with dollar-cost averaging. Over the long term, this strategy of investing set amounts at regular intervals over time can lower the amount you pay for investments and smooth out fluctuations that affect their portfolio.

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Cash is king? Find out more

70% of respondents think that their workplace benefits are inadequate

70%

Feels that health benefits and coverage from their employers are not enough.
68%

Thinks they need to top up the retirement and pension benefits from their employers.

Ensuring adequate medical protection is crucial when planning for retirement, as healthcare needs increase with age. Yet, government healthcare systems may not necessarily offset escalating treatment costs.

Furthermore, 70% of respondents feel that the health benefits and coverage from their employers are not enough. 68% of them think that they need to top up the retirement and pension benefits from their employers to boost their future financial well-being.

Top 3 rising healthcare costs felt by Singaporeans

The price of out-patient services is a leading concern.

  • 19%

    Out-patient services
  • 17%

    Hospitalisation
  • 15%

    Preventive healthcare

Based on people's perceptions, costs in these areas have increased by 17%, 20%, and 20% respectively in the last 12 months. This can be attributed to factors including new technology, rising wages, as well as general inflation.

Top 5 actions taken in response to the impact of rising healthcare costs

1. Exercised more to stay healthy

  
2. Watched my diet more carefully to stay healthy

  
3. Used less expensive healthcare services (e.g. government hospitals)

  
4. Used less expensive medicines (e.g. generic drugs)

  
5. Delayed or skipped health checks

    

People across Asia have different strategies towards mitigating the impact of rising healthcare costs. In the last 12 months, nearly 50% of respondents tried exercised more to stay healthy , which are the right approaches to enhance immunity1. 

Interestingly, 14% of respondents will choose a medical insurance plan with a higher premium and more coverage and benefits to mitigate the impact of rising healthcare costs.

Why aren't people taking action to alleviate rising healthcare costs? Many don't know how.

  • 38%

    I have no idea what to do.
  • 23%

    Medical inflation is too high that there is nothing that I can do about it.
  • 17%

    I want to get the best healthcare and money is secondary.
  • 9%

    I do not know who can give me professional advice.

Only 11% of respondents have not taken any actions. The main reason is that the majority have no idea what to do. Many of them feel helpless under soaring medical inflation and uncertain about where to seek professional advice. 

However, 17% of respondents still want to get the best healthcare and think money is secondary. That's why they did not lower their medical healthcare standard, i.e. by delaying or skipping health checks and treatments, or choosing a medical insurance plan with a lower premium and less coverage and benefits.

What can I do?

Don't let medical inflation hinder your retirement.

It's important to review your insurance coverage regularly, because the impact of not keeping up with the medical inflation is compounded over time. In Singapore, like most markets, medical inflation tends to rise more quickly than general inflation: 
  20242
Annual General Inflation (%) 3.5
Annual Medical Trend Net Rates (%) 9.5
Tips for reducing insurance policy costs.

While we're not able to negotiate the price of a health insurance plan, there are ways to bring down the cost of your policy.

For example, you could purchase a plan early in life, ensure that your premium payments and renewals are timely, undertake regular checkups to catch any health issues early, and generally live a healthy life.
Tips from Manulife's Asia Chief Medical Officer

Manulife's Asia Chief Medical Officer Detloff Rump advises, 'when it comes to health, prevention is better than cure. Hence, a good way of protecting against medical cost and inflation is to reduce the risk of needing expensive healthcare by eating a healthy diet, keeping fit, getting vaccinated, and having regular health screenings. But if illness strikes despite those measures, having critical illness insurance can reduce the financial impact and enable you to focus on recovery.'

These are just a few suggestions to help save some cash on your health insurance.

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Embracing solo: The rise of singlehood

Financial concerns of those not planning to get married

  • 21%

    The wedding and other ceremonies / traditions cost too much money
  • 19%

    Do not have stable or good income.
  • 12%

    Housing is a big concern.

For many in Asia, financial insecurity remains a major deterrent to starting a family. 

The Asia Care Survey 2024 reveals that 25% of respondents do not intend to get married, with worries about financial constraints, including the high cost of housing, wedding expenses, or insufficient income. 

Over 50% of the over 25s and single worry about a lack of savings

  Single Married
Insufficient savings 55% 44%
Unexpected medical expenses 57% 51%
Reduced income 44% 41%
Insufficient health insurance coverage 30% 27%
Providing for dependent parents 24% 24%

Respondents who are single and over 25 appear to have more financial concerns than those who are married. Single respondents are more anxious about their savings, unexpected medical expenses, and reduced incomes.

Financial literacy is also lacking among singles

  Single Married
Saving products 73% 76%
Insurance products  60% 64%
Investment products  54% 65%

The financial literacy of single respondents is lower than those who are married. Furthermore, only 58% of single respondents versus 71% of married respondents have a financial planner. Not having a financial planner could be a key reason for their greater concerns on their financial well-being and could also explain their lower financial literacy.

Shifting family dynamics: couples opting for child-free lifestyles

What keeps Singapore couples child-free?
Most are worried about added responsibility and education costs.

Personal concerns

  • 58%

    Too much responsibility to raise children.
  • 35%

    I want to have more free time for myself.
  • 10%

    I don't like kids in general.
  • 6%

    I want to focus on my career.

Financial concerns

  • 49%

    Education costs too much money.
  • 41%

    Healthcare for children costs too much money.
  • 17%

    I don't have stable / good income.
  • 14%

    It will delay my retirement plan.

When it comes to expanding a family, among those who are married without kids, 9% are unsure at this stage. For many, this decision extends beyond financial concerns and is based on personal reasons.

Interestingly, 33% of married respondent would rather have pets than kids in their family.

Are children great investments as future providers?

  • 42%

    Disagree

    Singles

  • 55%

    Disagree

    Married without child(ren)

  • 40%

    Disagree

    Married with child(ren)

There is a noticeable shift in Singaporeans' mindset, where having children is no longer viewed as an investment. The traditional notion of considering children as a future income source or 'insurance' is evolving; parents are less likely to rely on the next generation to provide for them in their old age.

Ageing without children: what are the concerns?

59% None

  
27% Having no children to take care of me and my spouse

  
20% Having no children to look after our healthcare needs

  
17% Having no children to provide for us

  
2% Having no children to keep us company

    

What can I do?

Secure your future. Start planning today.

Empowering personal choices beyond financial fears.

As family costs continue to rise, more people are choosing to remain single or not have children. Moreover, the decision to get married or have children is a deeply personal one, which should be guided by personal choice, not financial fears.

With a long-term investment and retirement plan tailored to your goals, you have the freedom to plan a family on your own terms.
Two things you can do now.

The most effective way for you to minimise the risk of running out of money in retirement is to maximise the two things you can control before retirement: start saving earlier and save more.

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