Many Singaporeans are taking positive steps to improve their financial wellbeing.
According to UOB's latest ASEAN Consumer Sentiment Study (ACSS) 2026, Singaporeans are making encouraging progress in their financial preparedness, with more building emergency savings, investing for the future and meeting basic financial planning milestones than a year ago.
The study found that four in ten Singaporeans now meet at least two of four basic financial planning guidelines, up from three in ten in 2025. At the same time, those who do not meet any of the guidelines have fallen from 22% to 18%.
These findings suggest more Singaporeans are taking action to strengthen their finances. At the same time, gaps remain across key areas of financial planning, highlighting opportunities to build stronger financial foundations for the future.
A simple framework for life-long financial planning
The findings from ACSS 2026 show that financial preparedness is improving. But good financial planning is not about doing well in one area alone.
Here is where Your Financial Basics comes in. Previously known as the Basic Financial Planning Guide, it outlines clear guidelines, simple product options and key national schemes that can help Singaporeans across life stages take practical steps towards financial wellbeing.
It covers four key areas.
| Key pillar |
What you can do |
| Savings |
Build an emergency fund that can cover at least three to six months of living expenses. Keep these funds in accounts or products that are easy to access when needed, such as:
• High-yield savings accounts
• Singapore Savings Bonds (SSBs) |
| Insurance |
Protect yourself and loved ones against major financial risks while keeping insurance affordable. As a guide:
• Spend no more than 15% of your take-home pay on insurance protection.
• Aim for coverage of four times your annual income for critical illness, and nine times annual income for death and total permanent disability (TPD).
Consider term insurance for affordable coverage and understand how basic health insurance like MediShield Life can also protect you against large medical bills. |
| Investments |
Set aside at least 10% of your take-home pay regularly for retirement and other long-term goals. Choose investments based on your budget, risk tolerance, time horizon and objectives.
Examples include:
• Shorter-term goals, such as planning for your wedding: SSBs, Treasury Bills (T-bills), fixed deposits
• Longer-term goals, such as retirement in a decade: CPF top-ups, diversified exchange-traded funds (ETFs), diversified unit trusts (UTs)
Start early and invest regularly to benefit from potential compounding. |
| Legacy planning |
Put key arrangements in place so your wishes are clearly communicated and your loved ones are supported.
Essential steps include:
• Making a will
• Making a CPF nomination
• Appointing a Lasting Power of Attorney (LPA)
• Completing an Advance Care Plan (ACP)
Review these arrangements regularly, especially with major life events such as marriage, parenthood or retirement.
|
The ACSS 2026 findings provide a useful snapshot of how Singaporeans are progressing across the four pillars of financial wellbeing.
Savings: Building a financial safety net
Unexpected events such as job loss, illness or urgent household expenses can happen at any time. Having emergency savings helps cushion the financial impact and provides greater peace of mind.
The ACSS 2026 found that 93% of Singaporeans have some form of emergency fund, while 68% have enough savings to cover at least three to six months of expenses. This is an improvement from 61% in 2025 and 60% in 2024.
Savings remains the strongest performing pillar. However, almost one in three Singaporeans still does not have the recommended emergency buffer. For those who are still building their savings, setting aside a fixed amount regularly can make the goal more manageable over time.
Insurance: Closing insurance coverage gaps
Insurance helps protect you and your loved ones from critical illness, total and permanent disability and death.
The ACSS 2026 found that while many Singaporeans have some form of insurance protection, protection levels often fall below guidelines.
Among those with death and TPD insurance, 49% reported coverage of only one to three times their annual income, while just 8% reported coverage of at least nine times annual income. For critical illness, 34% reported having coverage of at least four times annual income.
On a positive note, protection remains affordable for most households. Among current insurance holders, 73% spend up to 15% of their annual salary on insurance premiums.
There may be opportunities for you to review if you have sufficient insurance coverage to support your needs and financial commitments at your stage of life.
Investments: Making money work harder
Investing plays an important role in helping your savings potentially grow over time and supporting long-term goals such as retirement.
The ACSS 2026 found that 59% of Singaporeans invest more than 10% of their annual income, up from 47% in 2025. The proportion of those who did not invest also fell from 14% to 6%.
The study also found that 83% actively seek information to improve their investment knowledge, highlighting growing interest in learning how to build wealth over the long term.
Overall, the findings are encouraging. More Singaporeans are taking steps not only to strengthen their financial foundations but also to prepare for future needs through investing.
Legacy planning: Putting plans in place for the future
Legacy planning helps ensure your wishes are carried out and reduces uncertainty for your loved ones when important decisions need to be made.
The ACSS 2026 found that adoption of key legacy planning arrangements like Lasting Power of Attorney and Advance Care Plan is improving. However, 33% have yet to put any legacy planning arrangements in place.
Acting early can provide greater clarity and peace of mind for both you and your loved ones.
Progress is encouraging, but gaps remain
The ACSS 2026 findings show that more Singaporeans are taking positive steps towards better financial preparedness. More people have built emergency savings, are investing regularly and are putting key legacy planning arrangements in place.
At the same time, opportunities remain. Many have yet to strengthen insurance coverage, while others may benefit from taking a more balanced approach across all four pillars of financial planning.
Financial preparedness is not about getting everything right at once. It is about making steady progress, building good habits and re viewing your plans as your needs and priorities change.
Whether you are just starting your financial journey or reviewing existing plans, Your Financial Basics and its four pillars of savings, insurance, investments and legacy planning provide a useful framework to help you stay on track and build a stronger financial future.
Not sure where to start?
Take UOB's Financial Health Check to identify your strengths and the areas that may need more attention for your life stage.
1Your Financial Basics was developed by the Monetary Authority of Singapore and MoneySense, together with the CPF Board, Association of Banks in Singapore, Association of Financial Advisers (Singapore) and Life Insurance Association. It provides practical guidelines to help Singaporeans build strong financial foundations and make informed decisions across savings, insurance, investments and legacy planning at different life stages. The Basic Financial Planning Guide was introduced in October 2023 and refreshed as Your Financial Basics on 17 October 2026.
While the information provided herein is believed to be reliable as at the date of publication, United Overseas Bank Limited makes no representation or warranty whether express or implied, of the information contained in this article and the Financial Health Check Quiz and accepts no responsibility or liability for its completeness or accuracy or reliability.
The Financial Health Check Quiz is benchmarked against Your Financial Basics and 2026 ASEAN Consumer Sentiment Study (ACSS) and is for general information only - it does not have any regard to your specific investment objectives, financial situation and any of your particular needs. The information contained in this article shall not be regarded as an offer, recommendation, solicitation or advice to buy or sell any investment product, to buy or deal in any insurance product, or to make any investment, or to undertake any particular investment strategy and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose. Any description of insurance or investment products is qualified in its entirety by the terms and conditions of the insurance policy or investment product.
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