Singapore Tops Wealth Allocation in Insurance and Pensions Despite Growing Inequality

SINGAPORE – According to the latest Global Wealth Report by Swiss bank UBS, Singapore has seen a rise in average wealth per adult, while the median wealth has declined, highlighting growing wealth disparity. The report shows that 31 per cent of Singaporeans’ wealth is tied up in insurance and pensions, the highest among five markets studied, including Australia, Switzerland, the UK, and the US, where the figure is below 19 per cent.

Wealth Allocation

This significant allocation toward long-term financial instruments reflects an emphasis on retirement security, particularly as life expectancy rises. Average wealth in Singapore has grown faster than the median, similar to trends in South Korea, and the city-state now counts 331,000 US dollar millionaires.

Wealth inequality remains high, with Singapore ranking eleventh globally and a Gini coefficient of 0.70. Since 2020, pension and insurance holdings have increased from just over 22 per cent to nearly 30 per cent, underscoring a shift toward financial security and cautious wealth management amid rising living costs and longevity.

Business News