Insurance company Singlife has released its Financial Freedom Index, a study that looked into the perspective of consumers in Singapore on financial freedom.
“Financial freedom can mean different things to people at different stages of life. Singlife aims to empower Singaporeans to take control of their financial wellbeing through our products and services, regardless of their life stage or financial situation,” said Pearlyn Phau, group chief executive officer at Singlife. “The Financial Freedom Index helps us to understand the evolving needs of Singapore consumers on an even deeper level.”
About 3,000 Singaporeans and PRs aged 18–65 years old participated in the survey, which was conducted between December 2022 and January 2023. The study looked at various metrics, including financial literacy and financial portfolios of consumers in Singapore.
The results reveal only 29% of participants are confident they have achieved financial freedom even though the majority of consumers (73%) are aware of the importance of being financially free.
An average consumer in Singapore believes they need at least S$566,640 to achieve financial freedom. However, only 39% of the participants could meet their monthly savings goal after paying for the essentials. Also, on average, consumers are able to save S$1,733 every month. This means an average consumer would need around 27 or more years to save enough money to achieve financial freedom.
The findings indicate as well that only one out of three (33%) is confident they can manage their finances despite the rising costs or inflation rate in Singapore. Only one in four participants (28%) has enough money to give back to society.
Interestingly, among the group who feel they have achieved financial freedom, only 38% feel comfortable spending on their needs and wants. Among those who are considered everyday consumers, the rating is higher at 43%. This signifies that those who are financially free exercise prudence when spending and are watching their spending habits.
In terms of being able to pay off monthly bills, the significant majority (80%) of the financially-free group is confident about being able to pay off bills, while only 51% of everyday consumers expressed the same confidence.
“More than half of consumers are uncertain how to attain financial freedom. This highlights the need for more personalised products and services that can better support consumers in their journey towards financial freedom,” Phau said. “We recognise that our customers' needs are ever evolving, inspiring us to innovate according to their unique goals and empower them to take control of their financial well-being at every stage of life.”
