More Singaporeans aim to save over S$1M and retire in their 40s yet fewer have started retirement planning

SINGAPORE: More Singaporeans are aiming to save over a million dollars and retire in their 40s, according to a joint study by CIMB Singapore and Nanyang Technological University (NTU), titled the “Attitudes and Beliefs towards Financial Independence Report”, which gathered responses from over 1,000 Singapore residents aged 18 to 60.

Now, 56.3% of Singaporeans are aiming to save over S$1 million to gain financial independence, compared to 52.3% last year. Meanwhile, 35.8% said between S$1 million and S$2.5 million would be the “sweet spot”.

It also found that Singaporeans are now looking to retire in their 40s instead of their 50s, which was the norm last year, as reported by The Edge Singapore.

In fact, Gen Zs, the younger generation known for breaking the norm, are aiming to achieve financial freedom in their 30s, with some even as early as their 20s.

However, only 46.4% said they have started planning for retirement, held back by competing priorities (42.2%), not knowing where to start (34.4%), and believing it is still too early (31.9%).

While 78% believe financial freedom is attainable, only 36% are “moderately confident,” while 34.6% said they constantly feel anxious about their financial future.

Among generations, Millennials, whose main focus is building wealth (27%), were found to be the most confident about achieving financial independence, with 91.2% already having financial independence plans.

On the other hand, Gen Zs, who are aiming to retire earlier as they value autonomy and control over income and spending (25.7%), were found to be the most anxious (41.2%).

Gen X, who insist on living debt-free (20.1%), sits in the middle, with 38.3% saying they often feel anxious and 30.5% feeling strongly confident.

Singaporeans mentioned the same struggles holding them back: high cost of living (70.7%), low income (54.0%), and family responsibilities (53.4%). Others also cited concerns over market volatility (32.8%), limited financial education (28.2%), and lifestyle pressures like shopping (22.8%). /TISG

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