Survey shows: More than 40 percent of Singaporeans doubt their financial freedom; children are seen as an obstacle, Malaysia is a top location for retirement

KUALA LUMPUR, Aug 26 – A recent survey shows that over 40 percent of Singaporeans doubt they will ever achieve financial freedom on their current path.

Accordingly The Straits TimesOf the 3,000 respondents, 29 percent were optimistic about achieving financial freedom, 27 percent believe they have already achieved it, and 44 percent believe it is out of their reach.

The three most common reasons for doubts about their financial independence are insufficient income, unexpected personal or health problems and job insecurity.

ST said these findings were part of Singlife's second Financial Freedom Index.

The index results, obtained from an online survey of 3,000 Singaporeans and permanent residents aged 18 to 65 between April and June 2024, show a slight decline in the financial freedom score.

Respondents scored 58 out of 100 points this year, compared to 60 points in 2023.

According to the survey, inflation, inadequate retirement savings and medical expenses are the main causes of financial stress for respondents.

Over 44 percent of respondents believe that having children will hinder their path to financial independence, estimating that it will delay their progress by 15 years.

In contrast, 33 percent are indifferent and 22 percent say children have no influence on their financial goals. This view is particularly common among people aged 55 to 64, those whose youngest child is over 16, and those with high monthly household incomes.

In addition, half of the 3,000 respondents believe that it would take more than S$500,000 (RM1.67 million) to raise a child to the age of 21 in Singapore.

The index also found that 55 percent of respondents believe they know the path to financial freedom, while 45 percent are either unsure or have never thought about it.

The group of insecure people mainly includes those aged 35 to 44, and those who have not yet thought about financial independence tend to be women with lower monthly household incomes.

ST According to the 2024 Singlife survey, Singaporeans define financial freedom as the ability to live a desired lifestyle without worries (21 percent), being debt-free (19 percent), having a steady job that supports their lifestyle (12 percent) and spending money freely (10 percent).

Participants estimate that they need about S$612,000 in cash to feel financially free, an 8 percent increase from S$566,000 in 2023.

Four in five respondents plan to retire at 65 and expect to need monthly living expenses of S$2,856 to have a comfortable retirement.

In addition, one in five people prefer to spend their retirement abroad, citing lower living costs, a slower pace of life and better weather. Popular retirement destinations include Malaysia, Australia, New Zealand and Thailand.