2 in 5 Singaporeans value financial freedom over having a happy family

Good health continues to be the top-ranked purpose in life.

Family is now playing a declining role in most Singaporean’s journey to a better life, as financial freedom has stolen its place as the second most important purpose in life.

Around 40% of Singaporeans believe that financial freedom is the most important purpose in life, whilst only 34% believe that it is having a happy family. Having good health (53%) continues to retain the top spot according to AXA Singapore’s Better Life Index 2021.

“The results have shown that the pandemic has inevitably changed how Singaporeans think about their future, with many reassessing their goals as well as focusing on more pragmatic aspects such as personal finance to build up resilience. We are always ready to support Singaporeans in taking steps to secure their financial future, so they can confidently refocus on the other things that matter to them in their life journey,” said AXA Singapore CEO Jean Drouffe.

In tandem with this shift, more Singaporeans have added financial goals such as financial protection and wealth accumulation into their short- and long-term goals, whereas fewer have family-related goals. Correspondingly, less count family support as a factor that empowers them to achieve their goals. For Generation Z, having good saving habits has replaced family support as the top factor of empowerment for the achievement of long-term goals.

Are Singaporeans leading a better life?

In AXA’s Better Life Index 2021, in which its purpose is to understand how Singaporeans define a better life and how they are progressing on their journey towards it, the overall Better Life index score dropped to 45.8 from 50.1 in 2019.

The index noted a drop in Singaporeans having a purpose in life, with a significant drop in those who say they have short-term and long-term goals.

Financial concerns and emotional and mental stress have weighed down most Singaporeans. Amongst the struggles that they face, emotional and mental stress has risen in rank compared to two years ago, brought on by the pandemic and the changes and challenges that have come with it.

Many still grapple with financial concerns, namely the increasing cost of living (45%) and inability to save enough money (33%) which remain the top two struggles Singaporeans face as they work towards their goals. Inadequate financial knowledge (33%) has become a struggle for significantly more Generation Z youth as they strive to build their wealth.