SINGAPORE, August 29, 2024 – A recent survey from Singlife has revealed that it could take Singaporeans up to 30 years to achieve financial freedom, a nearly three-year increase from last year. The 2024 edition of the Singlife Financial Freedom Index highlights growing concerns among consumers, with 44% of respondents believing they may never attain financial freedom. The main barriers identified include insufficient income (53%), unforeseen expenses (38%), job insecurity (32%), and debt repayment burdens (28%).
This year’s index shows a decline in consumer confidence, with the average score dropping to 58 out of 100, down from 60 in 2023. Survey participants estimated they would need around S$612,045 to feel financially free, an 8% increase from last year. However, with median yearly savings now at S$20,195 (or S$1,682 per month), it may take three decades to reach that goal, compared to 27 years previously. Inflation and rising living costs have been cited as key factors influencing this trend.
Despite the challenges, the survey offers some optimism: 55% of respondents now say they know how to achieve financial freedom, an increase from 49% last year.
Debra Soon, Singlife’s Group Head of Brand, Communications, Marketing, and Experience, commented on the findings: “This year’s Financial Freedom Index reflects the growing difficulty consumers feel in reaching financial freedom. By understanding these challenges, we can better assist Singaporeans in planning and taking meaningful steps toward achieving their financial freedom goals.”
The survey, conducted between April and June, involved 3,000 Singaporeans and Permanent Residents aged 18 to 65. It also revealed that those aged 35 to 44 find it most challenging to attain financial freedom.
The study provided additional insights into key life stages, such as retirement planning and family dynamics. Four in five respondents aim to retire by age 65, with a median expected retirement expense of S$2,856 per month. This contrasts sharply with current median savings, emphasizing the need for early financial planning.
Parenthood also poses significant financial implications, with half of the respondents estimating that it costs more than S$500,000 to raise a child in Singapore. Over 40% believe that having a child will delay their retirement by 14 to 15 years, and as a result, 54% of consumers without children do not plan to have any, while 80% of those with at least one child do not intend to have more.
In terms of financial protection, the survey found that while most consumers have three types of insurance, only 57% have life insurance, and a mere 38% have critical illness coverage. This highlights a significant gap, as industry guidelines recommend coverage levels that many consumers have yet to achieve.
While 78% of respondents have at least three months’ worth of emergency funds, only one in three feels adequately prepared for unexpected financial events.