- Singaporeans now need 30 years to achieve financial freedom.
- 44% of Singaporeans think they’ll never be financially free.
- People need S$612,045 to feel financially free, up 8% from 2023.
Singlife’s new survey shows Singaporeans are finding it harder to reach their money goals.
Key Terms Simplified
- Financial Freedom means having enough money to live comfortably without worrying.
- Inflation is when things cost more over time.
- Median is the middle number in a list of numbers.
Singaporeans Face Longer Road to Financial Freedom
A new survey by Singlife shows Singaporeans are struggling more with money.
The survey was done from April to June 2024.
It asked 3,000 Singaporeans and PRs aged 18 to 65 about their finances.
The results are not good.
People now think it will take 30 years to be financially free.
This is 3 years longer than last year.
Debra Soon from Singlife said, “This year’s Financial Freedom Index shows that consumers feel an increasing difficulty in achieving financial freedom.”
Why People Are Struggling
The survey found many reasons why people are having money problems:
- 53% say they don’t earn enough
- 38% worry about surprise expenses
- 32% are scared of losing their jobs
- 28% have too much debt
These problems make it hard for people to save money.
The survey found people are saving less than before.
The median yearly savings is now S$20,195.
This is about S$1,682 per month.
The Cost of Financial Freedom
People now think they need more money to be financially free.
The amount has gone up by 8% since last year.
Now, people say they need S$612,045 to feel financially free.
This is a lot more than the S$566,640 they said last year.
The increase shows that things are getting more expensive.
| Year | Amount Needed for Financial Freedom |
|---|---|
| 2023 | S$566,640 |
| 2024 | S$612,045 |
Savings Are Going Down
The survey found that people are saving less money than before.
About 70% of people save less than S$3,000 per month.
This is up from 50% last year.
Even worse, 37% of people save less than S$1,000 per month.
Last year, only 25% saved this little.
Retirement Worries
Most people (80%) want to retire by 65.
But they think they’ll need S$2,856 per month when they retire.
This is a problem because people aren’t saving enough.
The median yearly savings of S$20,195 is not enough for retirement.
This gap is making people worry about their future.
The Cost of Raising a Child
The survey also asked about the cost of raising kids.
Half of the people think it costs over S$500,000 to raise a child in Singapore.
This is from birth until the child is 21 years old.
Having kids can delay financial freedom by 14 to 15 years.
This is what 40% of the people surveyed said.
Insurance Coverage is Low
The survey found that many people don’t have enough insurance.
Only 57% have life insurance.
Just 38% have critical illness coverage.
This is not enough to protect against big financial risks.
Hope for the Future
Despite the challenges, there is some good news.
More people understand how to achieve financial freedom.
55% say they know how to do it now.
This is up from 49% last year.
Debra Soon from Singlife said, “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.”
The road to financial freedom is longer, but with better understanding, Singaporeans can work towards their money goals.
