Singaporeans are concerned regarding their ability to pay mortgages while expatriates are troubling over lesser incomes, according to the survey of Zurich International Life (ZIL).
Andy Robinson, regional director of ZIL Asia said, “I wonder about the result if the survey is done now”. The country is now experiencing a worst recession with several forecasting that the financial system could decline as much as 8% to 10% this year.
Seventy percent of Singapore citizens in the November study were certain in saving sufficiently, while 60% of them worry about how they can pay their mortgages. Mr. Robinson believes the Central Provident Fund compulsory contributions account for the savings optimism while anxieties of job security keep Singaporeans up over the mortgages.
The survey has involved a total of 212 Singaporeans and expats with a least amount of monthly income worth $4,000, showed a low level of assurance in terms of economic recovery. Ninety percent of expatriates make changes in wealth allocation, with more for savings. Eighty-two percent of expatriates describe a disposable income reduction, which warranted 62% feeling the call for a lifestyle change.
Mr. Robinson said, “Part of that is buying less property”, pertains to the alterations of wealth allocation by the expatriates. Five years ago, big purchasers of high-end properties were foreigners and a large number of expatriates have switched from costly expats packages to local terms.
ZIL arranges two investigative reports every year asking expatriates and Singaporeans about their attitudes towards financial planning, as well as the correlativity between their lifestyle and financial behaviour.
Zurich International Life started business four years ago transacting investment-related products has perceived an augmentation in policyholders giving up their policies, according to Mr. Robinson.
ZIL is also a part of the Zurich group, which provides investment products and life insurance to affluent expatriates and customers.
So far, ZIL consists of 4,000 policyholders, of which almost 1,800 are Singapore citizens. In the year 2008, the annual premium reached US$71.2 million and sales are expected to be levelled this year. Mr. Robinson added ”Clearly we are seeing lower levels of business now compared to third quarter 2008”.
For several customers who desire to give up their policies due to job lost or they wish to cut losses, Zurich International Life does provide several alternatives for instance a premium holiday.
Minimum premiums of Zurich International Life investment-related products are $425 per month. This company operates in Singapore and serves as a division of the Zurich Financial Services Group, a provider of insurance-based financial services. Based in Zurich and it employs nearly 60,000 individuals and has clients in 170 countries worldwide.