Singaporeans face longer wait for financial freedom

Nearly half believe they will never be financially free.

Singapore consumers may need to wait an additional three years to achieve financial independence compared to last year, according to the second edition of Singlife's Financial Freedom Index. The latest study indicates that it could take up to 30 years for individuals to reach this milestone.

In a statement, Singlife also said that 44% of consumers surveyed believe they will never achieve financial freedom. Significant roadblocks cited include insufficient income (53%), unforeseen expenses (38%), job insecurity (32%), and debt repayment burdens (28%).

The average score on Singlife's Financial Freedom Index dropped from 60 in 2023 to 58 in 2024, indicating a decline in optimism. Respondents now believe they need a significantly larger sum to feel financially secure, with the estimated amount rising to $612,045 from $566,640 a year ago. 

Singlife said this surge is likely due to inflation and rising living costs.

With lower median annual savings of S$20,195, it could take Singaporeans approximately 30 years to accumulate enough wealth to feel financially independent, compared to 27 years previously. 

The analysis also revealed that 55% of respondents said they know how to achieve financial freedom, an improvement from last year’s 49%.

In terms of retirement, the Singlife survey showed that four in five consumers aim to retire by 65, slightly above Singapore’s legislated retirement age of 63. Consumers expect they would need a median of $2,856 per month for daily living expenses in retirement. 

Nearly 80% of consumers intend to retire in Singapore, whilst a small percentage of consumers said they wanted to do so overseas due to lower cost of living (71%), slower pace of lifestyle (63%), and a more favourable climate (35%). Most in this minority group favour locations such as Malaysia, Australia, New Zealand, and Thailand.

Meanwhile, Singaporeans estimate over $500,000 is needed to raise a child, delaying retirement by 14-15 years.

This year’s survey was conducted between April and June among 3,000 Singaporeans and Permanent Residents (PRs) aged 18 to 65. Those in the 35- to 44-year-old age group find it most difficult to attain financial freedom.