Singapore's CPF scores big in global pension index; Trump’s odds dwindle as Harris gains momentum in US election: Singapore live news

A recent report reveals a troubling trend: middle-class young adults in Singapore are increasingly burdened by debt.

According to loan matching platform Lendela, loan applications from those aged 20 to 35 have surged, with young adults now accounting for nearly half of all loan requests, as the cost of living continues to rise.

The average loan size sought by this group has also climbed, reflecting growing financial pressures tied to essential living expenses.

The study indicates a 140 per cent increase in loan applications from young adults over the past two years, although their overall share of applications has decreased by 20 per cent.

Young adults now apply for an average loan of $13,000, with amounts reaching as high as $270,000.

The primary reasons for borrowing include debt consolidation (31.8 per cent), bills (19.3 per cent), and home-related expenses (6.7 per cent), underscoring the urgent financial challenges faced by this demographic.

Millennials, particularly those in the middle-income bracket, have seen a notable rise in loan applications, often linked to significant life expenses such as mortgages, family care, and education costs.

Over 30 per cent of applications from millennials earning more than $84,000 reflect the increasing financial strain they encounter.

This trend is exacerbated for Gen Z borrowers, whose favourable debt serviceability ratios have declined, indicating greater difficulties in managing existing debts.

The report highlights a critical need for financial literacy and support, as more young adults turn to loans to cope with their economic realities.

Bryan Tay, Lendela's Singapore country manager, emphasises the importance of maintaining a healthy credit profile to navigate these pressures.

“While credit options need to remain accessible in a high-cost environment and to young adults who need them, it’s incredibly important for the long term financial health of younger borrowers that they maintain a healthy credit profile,” Tay said.

“This involves paying on time and in full, as well as how many debt and credit facilities they have, on top of several other indicators, and can significantly influence the financing options available to them, as well as the associated costs,” he added.

As discussions around the cost of living persist in Singapore's public discourse, the data serves as a stark reminder of the financial challenges affecting the nation’s younger generations.

With the economic landscape evolving, understanding the borrowing behaviours and financial health of young adults becomes increasingly essential for policymakers and financial institutions alike. Addressing these issues may be key to fostering long-term financial stability for Singapore's middle-class youth.

(Note: All figures quoted in the report are for share of applications, not total volume of applications, unless otherwise stated.)

Read on how the rising cost of living hits young Singaporeans hard here.

A stunning piece of calligraphy by President Tharman Shanmugaratnam raised an impressive $208,888 at the Singapore Red Cross (SRC) charity auction held Saturday (2 Nov) at the Shangri-La Singapore.

This remarkable artwork, inscribed with the Chinese phrase "同心协力，与时并进" (tóng xīn xié lì, yǔ shí bìng jìn), embodies the spirit of unity and progress.

The calligraphy piece, measuring 66cm by 124.5cm, drew significant interest, starting at a bid of $25,000.

The winning bid came from Fang Angzhen, founder of Angen Fund Management.

The auction attracted a diverse group of philanthropists, community leaders, and corporate executives eager to support the SRC’s mission.

Funds raised from this auction will directly benefit SRC's essential programs that support children, youth, families, persons with disabilities, and elderly individuals living alone.

This aligns with the organisation’s commitment to serving vulnerable communities throughout Singapore.

In addition to Tharman’s calligraphy, the charity auction featured a variety of other items, including artworks, a sculpture, a bottle of 18-year single malt whiskey, and a pair of round-trip business class tickets on Gulf Air.

These items fetched between $4,300 and $100,000, further contributing to the overall success of the event.

This year marks the 75th anniversary of the Singapore Red Cross, and the charity gala served as a crucial fundraising effort to ensure its programs continue to thrive.

Tao Yaqiong, wife of Zhu Su, co-founder of the collapsed cryptocurrency hedge fund Three Arrows Capital, has sold her Singapore mansion for S$51 million ($38.5 million).

The sale, completed recently, comes despite a court-imposed freeze on many of the couple's assets.

The luxurious good class bungalow, located on Dalvey Road near the Botanic Gardens, covers 1,446 square meters (15,568 square feet) of land.

Tao purchased the property in 2020 for S$28.5 million and has since redeveloped it, making the sale particularly notable given the couple's financial woes.

Zhu Su and fellow co-founder Kyle Davies saw their hedge fund implode in 2022 after poor investment decisions.

As a result, they have faced significant regulatory scrutiny, including nine-year bans from Singapore's financial market and other legal challenges.

Despite these setbacks, Tao’s sale is a rare financial win for the family.

The couple's assets remain under a global freeze initiated by liquidators Teneo, who argue creditors are owed approximately US$3.3 billion following the fund's collapse.

The buyer, Chrispianto Karim, a Singapore citizen and member of the influential Indonesian Karim family, has added the property to his portfolio, showcasing the continued demand for high-end real estate in Singapore, even amid financial turbulence.

Read on the $51 million mansion sale by the wife of disgraced Three Arrows Capital co-founder Zhu Su here.

Well, hopefully you won't find this article TLDR.

In a digital landscape dominated by quick conversations and social media, understanding text abbreviations is crucial, yet many Singaporeans find themselves puzzled.

A recent study by Preply has identified the 20 most confusing text abbreviations, revealing a significant gap in knowledge among the younger generation.

Topping the list is “TLDR,” which stands for “Too Long Didn’t Read,” with an astounding 79,080 Google searches for its meaning last year.

This abbreviation is commonly used to summarise lengthy posts, yet it remains widely misunderstood.

Following closely is “NSFW” or “Not Safe For Work,” which racked up 76,320 searches.

This term serves as a crucial warning for potentially inappropriate content, particularly in professional settings.

Other abbreviations such as “POV” (Point Of View) and “GOAT” (Greatest Of All Time) are also causing confusion.

With search volumes of 62,520 and 61,320 respectively, these terms are frequently used in social media conversations, especially among Gen Z.

Meanwhile, “SMH” (Shaking My Head) rounds out the top five, showing how the language of youth culture is evolving.

The study underscores the challenges faced by both native and non-native English speakers in Singapore.

Despite English being a primary language, the rapid adoption of slang and abbreviations from various online platforms complicates understanding.

The multicultural environment in Singapore only adds to the confusion, making these shortcuts even harder to decipher.

Read on the most confusing text abbreviations in Singapore here.

Singapore's pension system ranks fifth globally in the 2024 Mercer CFA Institute Global Pension Index, scoring 78.7 and earning a B+ grade.

The Central Provident Fund (CPF) is the cornerstone of this system, ensuring that citizens save for retirement, housing, healthcare, and education.

With its strong framework, Singapore effectively addresses the financial needs of its ageing population.

The CPF mandates contributions from both employees and employers, creating a robust pool of savings.

This approach ensures a high adequacy score of 79.8, reflecting the system's ability to provide sufficient retirement income.

Furthermore, the sustainability score of 74.3 indicates that the system can support benefits for future generations.

Singapore’s pension integrity shines with a score of 83.0, highlighting strong governance and regulatory measures.

This fosters public trust, ensuring that citizens have confidence in their retirement savings.

The government also promotes flexible retirement options, allowing individuals to invest their CPF savings based on personal risk preferences.

However, challenges lie ahead.

As Singapore's population ages, policymakers must adapt the system to meet the needs of a growing number of retirees.

Enhancing financial literacy and providing ongoing public education will be crucial in preparing citizens for their retirement.

Singapore’s proactive approach to retirement savings positions it as a model for other countries.

As global demographic shifts continue, the island nation’s pension system will be closely watched for best practices in retirement planning.

Find out what makes Singapore's CPF a model for retirement savings here..