Savings Behavior Survey During A Pandemic: 32 Percent Of Millennials Trying To Invest In Gold

Illustration. (Photo: Unsplash)

JAKARTA - The Pluang team revealed the results of research with a focus on millennial saving and investment behavior in the new normal, involving more than 5,500 respondents in big cities in Indonesia. This research was carried out by means of an online survey in July-August 2020.

Some millennials claim to have a new investment instrument in the midst of a pandemic, namely gold. From this research, it was also found that the millennial allocation to invest after the pandemic was smaller when compared to the previous allocation. This reduction in allocation means that millennials are looking for affordable investment instrument alternatives while still providing promising returns.

"As many as 32 percent of the millennial generation reportedly tried new investments, namely gold. This is the highest percentage compared to other well-known investments such as mutual funds, stocks and deposits," said Humprey, VP of Business Development Pluang by PT PG Berjangka, in a written statement, Friday November 20

Apart from affordability, the factor of economic uncertainty and the price of gold, which had soared around April-July 2020, is thought to be the main driver, specifically the gold instrument being the choice of respondents.

Humprey said respondents changed their consumption patterns during the COVID-19 pandemic. As many as 53 percent of respondents changed their allocation to buy supplements, vitamins and minerals more than in the period before the pandemic began.

The allocation for medical diagnosis and savings has also become larger. On the other hand, the allocation for vacation, using public transportation, shows a decline.

COVID-19 also has an impact on the allocation of saving and investing millennials. The allocation for saving has increased slightly, while the allocation for investment has decreased. The majority of respondents saved 5-10 percent after the pandemic.

Millennials have higher scores for financial literacy and knowledge to invest when compared to other age groups. However, this does not mean that millennials have many financial products and investment products.

Savings, especially for family savings, emergency funds, and pension funds, are the top three financial targets for survey respondents. The need for liquid funds to be used in a short period of time appears to be more significant than the need for having funds in a longer term.

In achieving their financial targets, the majority of respondents still prefer to save cash instead of investing.

Humprey said to achieve their financial targets, it appears that millennials prefer to save rather than invest. Around 41 percent of millennials prefer to save, while the remaining 69 percent is channeled into other types of investment. Physical investments like gold remain the most popular, followed by mutual funds and stocks.