A recent poll reveals that over 40 percent of Singaporeans doubt they will ever reach financial freedom on their current path. Out of 3,000 respondents, 29 percent said they are optimistic about achieving financial freedom, 27 percent believe they have already achieved it, and 44 percent feel it is beyond their reach. The top three reasons cited by those who doubt they’ll achieve financial freedom are insufficient income, unexpected personal or health issues, and job insecurity.
These findings were a part of Singlife’s second financial freedom index. The index findings, gathered from an online survey of 3,000 Singaporeans and permanent residents aged 18 to 65 between April and June 2024, show a slight decline in the financial freedom score. Respondents scored 58 out of 100 this year, down from 60 in 2023.
The survey revealed that inflation, insufficient retirement savings, and medical expenses are the top sources of financial stress for those polled. Over 44 percent of respondents believe that having children will hinder their path to financial independence, estimating it will delay their progress by 15 years. In contrast, 33 percent are indifferent, and 22 percent feel having kids won’t impact their financial goals.
Singaporeans’ financial worries and concerns
This belief is particularly common among individuals aged 55 to 64, those whose youngest child is over 16, and those with a high monthly household income. Additionally, half of the 3,000 people surveyed think raising a child in Singapore until age 21 will require more than S$500,000 (RM1.67 million).
The index also revealed that 55 percent of those surveyed feel they know the path to financial freedom, while 45 percent are either unsure or have never considered it. The unsure group is primarily aged 35 to 44, while those who haven’t thought about financial independence tend to be women with lower monthly household incomes. Reported from Singlife’s 2024 survey, Singaporeans define financial freedom as the ability to live a desired lifestyle without worry (21 percent), being free from debt (19 percent), having stable employment to support their lifestyle (12 percent), and spending freely (10 percent).
Participants estimate that they need about S$612,000 in cash to feel financially free, an eight percent increase from S$566,000 in 2023. Four in five respondents plan to retire by age 65, believing they will need S$2,856 in monthly living expenses for a comfortable retirement. Additionally, one in five prefers to retire overseas, citing reasons such as lower living costs, a slower pace of life, and favourable weather.
Popular retirement destinations include Malaysia, Australia, New Zealand, and Thailand.
- Yahoo.”Poll reveals over 40pc of Singaporeans doubt financial freedom; children seen as barrier, Malaysia a top retirement spot”.
- StraitsTimes.”Close to half of Singapore residents say they will never achieve financial freedom: Poll”.
- TheIndependent.”69% Singaporeans expect to still work after retirement age—study”.