SINGAPORE: A recent survey has revealed a growing concern among Singaporeans about achieving financial freedom. According to the survey, over two in five Singaporeans believe having children will delay their financial freedom by around 15 years.
The findings, part of Singlife’s second Financial Freedom Index, were gathered through a poll of 3,000 Singaporeans and permanent residents aged 18 to 65 between April and June 2024.
According to The Straits Times, the survey showed that only 29 per cent of respondents feel confident that they will attain financial freedom. Another 27 per cent believe they have already achieved it.
In contrast, 44 per cent think they will never reach this goal. In 2024, the index score was 58 out of 100, down from 60 in 2023.
Respondents cited three main obstacles to financial freedom: insufficient income, unexpected personal or health issues, and job insecurity. They also said they are most worried about inflation, not having enough savings for retirement, and paying for medical expenses.
Among the concerns raised, the impact of having children is particularly notable. 44 per cent of those surveyed feel that raising children will hinder their path to financial independence. They said raising children will delay their financial freedom by approximately 15 years.
This view is more common among individuals aged 55 to 64, those with the youngest child over 16 years old, and those with higher monthly household incomes. Half the respondents also believe raising a child in Singapore until age 21 will require over S$500,000.
In contrast, 33 per cent of respondents are neutral about the effect of having children on their financial goals, while 22 per cent do not think it will delay their financial freedom.
Despite these concerns, over half of the respondents (55 per cent) feel they clearly understand how to achieve financial freedom. The remaining 45 per cent are unsure how to achieve it or have not considered becoming financially independent.
The uncertain group is generally aged 35 to 44, while those who have not thought about financial independence often include women with lower household incomes.
When asked what financial freedom means to them, most respondents highlighted the ability to live a desired lifestyle without financial worries (21 per cent), being free from debt (19 per cent), having a stable job to support their lifestyle (12 per cent), and the freedom to spend as they wish (10 per cent).
Participants believe they need about S$612,000 cash to feel financially free, an 8 per cent increase from the S$566,000 reported in 2023. Most (80 per cent) aim to retire by age 65, with most believing they will need S$2,856 per month to live comfortably.
However, one in five respondents prefers to retire overseas, drawn by lower living costs, a slower pace of life, and better weather. Popular destinations include Australia, Malaysia, New Thailand, and Zealand.
The survey also found that 57 per cent of respondents are aware of or have life insurance, while 38 per cent have critical illness protection.
/TISG
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