Finance
More than two in five Singaporeans believe they will never achieve financial freedom, survey reveals
More than two in five Singaporeans believe they will never achieve financial freedom, citing insufficient income, unforeseen expenses, and job insecurity. Singlife’s survey reveals that it could take 30 years to reach financial independence, up from 27 years last year, amid rising costs and inflation.
A recent survey by Singlife has revealed that more than two in five people in Singapore believe they will never achieve financial freedom based on their current financial trajectory.
The poll, part of Singlife’s second Financial Freedom Index, shows significant concerns among Singaporeans and permanent residents regarding their financial futures.
According to the survey, 44 per cent of respondents expressed doubts about ever reaching financial freedom, citing major roadblocks such as insufficient income (53 per cent), unforeseen expenses (38 per cent), job insecurity (32 per cent), and debt repayment burdens (28 per cent). These challenges have contributed to a decline in the overall Financial Freedom Index score, which dropped to 58 out of 100 in 2024, down from 60 in 2023.
The survey, conducted between April and June 2024 among 3,000 Singaporeans and permanent residents aged 18 to 65, also found that respondents believe they need approximately S$612,045 to feel financially free, an increase of 8 per cent from S$566,640 in 2023.
However, with the median yearly savings reduced to S$20,195, it may take individuals around 30 years to achieve this goal, up from 27 years in the previous year. This extended timeline reflects the impact of inflation and rising costs of living on consumer sentiment.
Despite these challenges, there is a slight increase in the number of respondents who believe they know how to achieve financial freedom, rising from 49 per cent in 2023 to 55 per cent in 2024. However, the survey also highlighted significant gaps in financial preparedness, particularly among the 35- to 44-year-old age group, who find it most difficult to attain financial freedom.
Retirement Goals and Financial Preparedness
The survey revealed that four in five respondents aim to retire by age 65, slightly above Singapore’s legislated retirement age of 63. To do so comfortably, they estimate needing a median of S$2,856 per month for living expenses. However, with current median monthly savings of $1,682, there is a significant gap between savings and expected retirement needs, underscoring the importance of building up cash reserves early.
Interestingly, nearly 80 per cent of respondents plan to retire in Singapore, while a minority prefer to retire overseas due to factors such as lower costs of living (71 per cent), a slower pace of life (63 per cent), and more favorable weather (35 per cent). Top retirement destinations include Malaysia, Australia, New Zealand, and Thailand.
The Financial Impact of Parenthood
The survey also explored the long-term financial impact of parenthood, with half of the respondents estimating that more than S$500,000 is required to raise a child in Singapore from birth to age 21, based on a median monthly expense of S$1,918.
Over 40 per cent believe that having children will delay their retirement age and ability to achieve financial freedom by an average of 14 to 15 years. As a result, 54 per cent of respondents without children said they do not intend to have any, and 80 per cent of those with at least one child do not plan to have more.
Protection Gaps and Preparedness for Unexpected Events
The survey also revealed that while most consumers have on average three types of insurance products, only 57 per cent are aware of or claim to have life insurance coverage, and just 38 per cent have critical illness protection.
These figures suggest a significant protection gap, particularly when considering industry guidelines that recommend life insurance coverage of at least nine times one’s annual income. However, the median coverage among respondents was only S$286,670, less than half the recommended level.
Moreover, while most respondents (78 per cent) reported having at least three months of emergency funds, only one in three felt they had adequate savings to cushion against unexpected events. This finding highlights the need for better financial planning and risk management among Singaporeans to secure their financial future.
Singlife’s Group Head of Brand, Communications, Marketing and Experience, Debra Soon, emphasized the importance of understanding these challenges to help Singaporeans take meaningful steps toward achieving their financial freedom dreams. As Singaporeans navigate the complexities of financial planning amid rising costs, the insights from this survey provide valuable guidance for both individuals and financial planners.
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How can it be so,not too long ago we have the current President & the howling papee dogs saying if you are earning a $1000/= you easily can buy a HDB flat,what happened,is this NO LONGER TRUE???? What changed?
This only confirms that SG policies are constantly tweaked to exploit Singaporeans – costs are artificially inflated (esp. housing) so that Singaporeans have to keep working just to survive – reaching financial freedom is portrayed as only an “aspiration” (maybe like striking Toto). Typically both parents in a family have to work to make ends meet – yet the monkeys say this is “personal choice”, while happily awarding themselves million$ salary to constantly tweak the policies to enslave the population.
I just got paid 7268 Dollars Working off my Laptop this month. And if you think that’s cool, My Divorced friend has twin toddlers and made 0ver $ 13892 her first m0nth. It feels so good making so much money when other people have to work for so much less.
This is what I do………> Www.NetPay1.Com
Other factors that contributed to “never able to achieve financial freedom” and govt inflicted high cost of living includes raise in property taxes and high absd. Even if local born citizens intend to purchase additional property for renting as a source of retirement income, they will be forced robbed by pee air pee under the name of absd and high property taxes making additional housing unaffordable. While foreigners with deep pockets will just pay them with ease. Every little attempt to save petty cash eg. going to jb to pump fuel is somehow plugged by pee air pee with three… Read more »
What? I thought Singlife always say “Cannnnn. Singlife has a plan … for you” The only thing they can’t promise you is Pierre Png. So Singlife got no plan to persuade these 2 out of 5 Singies that they can achieve financial freedom? I got a very simple plan that is SURE to work wan. DIE young.
(1) Expensive housings, even for public HDB housings. (2) Costly medicine. (3) Expensive vehicles with that COE tagged along. (4) Rising public transport fares. (5) Rising education fees. (6) Even rising refuse collection fee (from $7 to $9 to now $9-something raised quietly)…..lol. (7) Raised GST. (8) Raised electricity, water and gas tariffs. (9) Raised S&CC fee (but neighbourhood still as dirty)…lol. (10) Raised public medical insurance fees (Medishield, Careshield Life and whatever shields except bulletproof shield….lol). And etc. If anyone who can abstain from most of the abovementioned points, maybe he can achieve financial freedom in Singapore. LOL. What… Read more »
Propaganda from strait media
During LKY times, people thought that they work hard and they can retire well as they think they can make enough money. They vote PAP foolishly then like now. In the end, many of them collect cardboard and wash toilet even with CPF policy. ” work hard and you will be rewarded” scam is happening around the world and so many people get cheated when they believe in all these lies. Look at people around the world when they are old, many of these hardworking people are suffering. They are all been fooled.
According to the survey, 44 per cent of respondents expressed doubts about ever reaching financial freedom, citing major roadblocks such as insufficient income (53 per cent), unforeseen expenses (38 per cent), job insecurity (32 per cent), and debt repayment burdens (28 per cent). These challenges have contributed to a decline in the overall Financial Freedom Index score, which dropped to 58 out of 100 in 2024, down from 60 in 2023. Are the 44 % belong to low income family Still not enough ? Lower-income families receive more help, but everyone benefits from schemes such as CDC Vouchers, GST Vouchers,… Read more »
I think most of them are dreaming they will achieve financial freedom. Prices in Singapore keep going up, making prediction hard and impossible. Strong Singapore dollar policy to keep inflation down as we know is not effective in the past. Every time recession, Singapore dollar go to low again, making import expensive(kill you when you are sick). Prices never go down in Singapore but many policies like welcome foreigner to snatch job, can make you jobless and with no income are increasing risk of Singaporeans having suffering days.
Cannot be 2 in 5. PAP ways of tracking how wealthy is thru the kind of residences their locals live. Less than 0.5 are GCBs. 16.5% are in pte properties of various kind. 4% in landed and lastly 79% in slum low ses HDB pigeon holes. Based on the ratio that more or less does not change much thru the yrs ,except a 1 or less than 1 % point movement, if 79% were olre or less that way till now ,that would mean for every 10 folks, 8 of them cannot ‘make it’! If 5 is 100% Approx 79… Read more »
Wait for a counter survey from U know who.
And as usual, similar to Desmond said, affordability has been proven when many many has been able to service their mortgages without problems using CPF, is this the correct statement, which I cannot rmb word for word.