Poll reveals over 40pc of Singaporeans doubt financial freedom; children seen as barrier, Malaysia a top retirement spot

KUALA LUMPUR, Aug 26 — A recent poll reveals that over 40 per cent of Singaporeans doubt they’ll ever reach financial freedom with their current path.

According to The Straits Times, out of 3,000 respondents, 29 per cent said they are optimistic about achieving financial freedom, 27 per cent believe they have already achieved it, and 44 per cent feel it is beyond their reach.

The top three reasons cited by those who doubt they’ll achieve financial freedom are insufficient income, unexpected personal or health issues, and job insecurity.

ST said these findings were a part of Singlife’s second financial freedom index.

The index findings, gathered 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 this year, down from 60 in 2023.

The survey revealed that inflation, insufficient retirement savings, and medical expenses are the top sources of financial stress for those polled.

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

In contrast, 33 per cent are indifferent, and 22 per cent feel having kids won’t impact their financial goals. This belief is particularly common among individuals aged 55 to 64, those whose youngest child is over 16, and those with a high monthly household income.

Additionally, half of the 3,000 people surveyed think raising a child in Singapore until age 21 will require more than S$500,000 (RM1.67 million).

The index also revealed that 55 per cent of those surveyed feel they know the path to financial freedom, while 45 per cent are either unsure or have never considered it.

The unsure group is primarily aged 35 to 44, while those who haven't thought about financial independence tend to be women with lower monthly household incomes.

ST reported from the Singlife’s 2024 survey, Singaporeans define financial freedom as the ability to live a desired lifestyle without worry (21 percent), being free from debt (19 per cent), having stable employment to support their lifestyle (12 per cent), and spending freely (10 per cent).

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

Four in five respondents plan to retire by age 65, believing they will need S$2,856 in monthly living expenses for a comfortable retirement.

Additionally, one in five prefers to retire overseas, citing reasons such as lower living costs, a slower pace of life, and favourable weather. Popular retirement destinations include Malaysia, Australia, New Zealand, and Thailand.