Rising burden: People sitting next to a pond with a view of the skyline in Singapore. More than two in five Singaporeans – or 44% – believe having children will slow them down in being financially independent. — AFP
SINGAPORE: More than two in five people in Singapore believe they will never be able to achieve financial freedom based on their current trajectory, a poll finds.
Of the 3,000 people polled, 29% said they will be able to achieve financial freedom, 27% said they have already attained it, while 44% said they will never be able to do so.
The top three reasons they cite for not being able to be financially free are: insufficient income, unforeseen personal or health circumstances, and job insecurity.
The findings were part of composite insurer Singlife’s second financial freedom index.
The index findings were gathered through an online survey of 3,000 Singaporeans and permanent residents aged 18 to 65 from April to June in 2024.
In 2024, respondents scored 58 out of 100 in the index. This is slightly down from the score of 60 in 2023.
Those polled said they are most stressed about inflation, not having enough savings for retirement, and having to pay for medical expenses.
More than two in five – or 44% – believe having children will slow them down in being financially independent. This group estimated that having children would keep them away from financial freedom by 15 years.
Of the rest, 33% are neutral, and 22% do not think having kids will slow them down.
The sentiment that having children will delay them financially is more prevalent among those aged 55 to 64, and among people whose youngest child is above the age of 16, and those with a high monthly household income.
Half of the 3,000 surveyed believe they need more than S$500,000 to raise a child here till the age of 21.
The index also found that more than half of those polled – 55% – said they know how to get to financial freedom.
The remaining 45% comprise people who are unsure and those who have never thought about this.
Those unsure are usually aged 35 to 44, while those who did not think about becoming financially independent are usually women with low monthly household income.
When asked, Singlife said that based on the 2024 survey results, Singaporeans felt that financial freedom means the ability to lead a desired lifestyle without worry (21%); free from debt obligations (19%); having stable work to support lifestyle (12%); and the ability to spend freely (10%).
As for the amount to feel financially free, participants said they need about S$612,000 in cash. This is an increase of 8% from S$566,000 in 2023.
Four in five polled aim to retire by age 65. Most believe they need S$2,856 in living expenses per month to do so comfortably.
Meanwhile, one in five prefers to retire overseas, citing reasons such as the lower cost of living, slower pace of life and preferred weather.
The top destinations are Malaysia, Australia, New Zealand and Thailand.
About three in five, or 57%, are aware of or said they have life insurance coverage, while nearly two in five – 38% – have critical illness protection. — The Straits Times/ANN
