Nearly half of Singaporeans believe having children will delay their financial freedom by 15 years » Singapore News

SINGAPORE: A recent survey has shown that Singaporeans are increasingly concerned about achieving financial freedom. According to the survey, more than two in five Singaporeans believe that having children will delay their financial freedom by about 15 years.

The findings, part of Singlife's second Financial Freedom Index, were collected through a survey of 3,000 Singaporeans and permanent residents aged 18 to 65 between April and June 2024.

According to The Straits Times, the survey found that only 29 percent of respondents are confident of achieving financial freedom, while another 27 percent believe they have already achieved it.

However, 44 percent believe that they will never achieve this goal. In 2024, the index value was 58 out of 100, compared to 60 in 2023.

Respondents identified three main barriers to financial freedom: insufficient income, unexpected personal or health problems, and job insecurity. They also said their biggest concerns were inflation, insufficient savings for retirement and paying medical expenses.

Among the concerns raised, the influence of children is particularly prominent. 44 percent of respondents believe that raising children will hinder their path to financial independence. They said raising children will delay their financial freedom by about 15 years.

This view is more common among people aged 55 to 64, whose youngest child is over 16, and those with higher monthly household incomes. Half of respondents also believe that raising a child in Singapore until they are 21 will cost over S$500,000.

In contrast, 33 percent of respondents are neutral about the impact of having children on their financial goals and 22 percent do not believe it will delay their financial freedom.

Despite these concerns, more than half of respondents (55 percent) feel they know exactly how to achieve financial freedom. The remaining 45 percent are unsure how to achieve this or have not yet thought about becoming financially independent.

The group of insecure people generally includes those aged 35 to 44, and those who have not yet thought about financial independence often include women with lower household incomes.

When asked what financial freedom means to them, most respondents cited the ability to live a desired lifestyle without financial worries (21 percent), being debt-free (19 percent), having a stable job that supports their lifestyle (12 percent) and the freedom to spend money as they please (10 percent).

Participants believe they need about S$612,000 in cash to feel financially free, an 8 percent increase from S$566,000 in 2023. Most (80 percent) aim to retire at age 65, and most believe they need S$2,856 per month to live comfortably.

However, one in five respondents prefer to spend their retirement abroad because the cost of living is lower, life moves at a slower pace and the weather is better. Popular travel destinations include Australia, Malaysia, New Thailand and New Zealand.

The survey also found that 57 percent of respondents know about or have life insurance, while 38 percent have serious illness insurance.

/TISG

Also read: “Is it even possible to get married without money?” – Singaporeans say that due to the high cost of living, marriage and having children are no longer a priority

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