Respondents to a financial survey in Singapore believe that they need approximately S$612,045 ($469,870) to be considered financially free, up by 8% from S$566,640 in 2023.
The study, by financial services company Singlife, said that it may take consumers in Singapore around 30 years to achieve financial freedom, based on median yearly income. This is nearly three years longer compared to a year ago.
The second edition of Singlife’s Financial Freedom Index, released yesterday, also reveals that four out of 10 (44%) Singapore consumers surveyed believe they will never achieve financial freedom.
Significant roadblocks cited include insufficient income (53%), unforeseen expenses (38%), job insecurity (32%) and debt repayment burdens (28%).
As compared to last year, there is a slight dip in how financially free Singaporeans felt, with an average score of 58 out of 100, down from 60 in 2023.
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Key Insights (year-on-year)
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2024
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2023
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Changes
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Median amount required to feel financially free
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S$612,045
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S$566,640
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+8%
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Average score (out of 100) on the Financial Freedom Index
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58
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60
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-2 pts
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Consumers who see the importance of being financially free
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77%
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73%
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+4%
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Consumers who feel financially free
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29%
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29%
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No change
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Time needed to achieve financial freedom based on median yearly savings
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30 years
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27.3 years
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+2.7 years
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Median yearly savings recorded in survey
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S$20,195
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S$20,790
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-2.9%
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Consumers saving
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70%
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50%
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+20%
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Consumers saving
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37%
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25%
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+12%
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Consumers aiming to retire by 65 years old
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80%
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New question for 2024 survey
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Singlife head of brand, communications, marketing and experience Debra Soon said, “This year’s Financial Freedom Index shows that consumers feel an increasing difficulty in achieving financial freedom.
“We added more questions in the study and obtained more insights on how much consumers are saving, versus their goals, and what gaps they have in their finances. Perception studies are important in helping us understand how to help Singaporeans find a better way to financial freedom. By understanding the challenges they have to overcome to become financially free, we believe that we can help them plan and take meaningful steps to reach their financial freedom dream, whatever it may be.”
This year’s Singlife Financial Freedom Index also uncovered Singaporeans’ attitudes towards raising a family, retirement, and protection gaps:
Retirement: Four in five consumers aim to retire by 65, slightly above Singapore’s legislated retirement age of 63. Consumers expect they would need a median of S$2,856 per month for daily living expenses in retirement.
Family Planning: Over 40% believe having a child will delay their retirement age and ability to achieve financial freedom by an average of 14 to 15 years.
Protection Gaps: Only 57% of respondents are aware of or claim to have life insurance coverage. Even fewer (38%) indicate that they have coverage for critical illness.
This year’s survey was conducted between April and June among 3,000 Singaporeans and permanent residents aged 18 to 65. Those in the 35- to 44-year-old age group find it most difficult to attain financial freedom.