[ad_1]
SINGAPORE — The average consumer in Singapore say they need to accumulate a median savings of S$566,640 to feel financially free, according to a survey conducted by local financial services company Singlife.
Furthermore, the Singlife Financial Freedom Index 2023 revealed that it would take approximately 27 years for the average consumer to reach this amount, based on median monthly savings of S$1,733 per month.
The survey, which involved 3,000 Singaporeans and Permanent Residents (PRs) aged between 18 and 65, was conducted online between December 2022 and January 2023 and aimed to understand the attitudes of individuals from diverse income levels towards achieving financial freedom amid inflation and the rising cost of living.
Financial freedom indicators
In the survey, participants were categorised into three distinct consumer groups based on their current levels of financial freedom, measured on a scale from one to 10.
The Financially Free group constituted 29 per cent of the surveyed population and had an average monthly personal income of S$9,067 while the Everyday Consumer made up 54 per cent of survey participants and had an average monthly personal income of S$5,652. Finally, the Financially Constrained group comprised 17 per cent of survey participants and had an average monthly personal income of S$3,442.
Among the six themes of financial freedom identified by the survey, the ability to retire at any time and having enough money to give back to society were ranked as the top two indicators of financial freedom. Additionally, results of the survey indicated that while 73 per cent of those surveyed acknowledge the importance of financial freedom, only 29 per cent feel that they have actually achieved it.
How much did each group save for financial freedom?
The survey further revealed that participants consider savings a crucial factor in achieving financial freedom. About half of the respondents save approximately S$3,000 or less per month, while 25 per cent save S$1,000 or less per month.
Individuals in the Financially Free group save 51 per cent or nearly three times more than the average consumer, with an average monthly saving of at least S$4,629.
The Everyday Consumers group save 45 per cent of their monthly personal income, resulting in an average monthly saving of at least S$2,593, while Financially Constrained individuals save 50 per cent of their monthly personal income, resulting in an average monthly saving of at least S$1,728.
Spending habits of each group
When asked whether they felt comfortable spending on their needs and wants, 38 per cent of the Financially Free group said they were compared to 43 per cent for the Everyday Consumers group. The survey inferred that this was an indication that a higher proportion of Financially Free individuals exercise greater prudence in their spending habits compared to Everyday Consumers.
The survey also revealed that 80 per cent of Financially Free individuals feel confident in their ability to pay off monthly bills. In contrast, this confidence is reported by only 51 per cent of Everyday Consumers and only 39 per cent of Financially Constrained individuals.
Follow us on Facebook, Instagram, TikTok and Twitter.
[ad_2]
Source link