2 out of 3 Singapore Residents Aspire to Achieve Financial Independence Between 40 to 60

• 1 in 2 Singapore residents believe they need over S$1 million to achieve financial independence.
• Compared to other age groups, Singapore residents under 30 are most confident in achieving their early financial independence goals.

SINGAPORE, April 16, 2025 /PRNewswire/ -- CIMB Singapore released a report that revealed Singapore residents' perceptions and behaviours towards financial planning, with 63% of them aspiring to achieve financial independence between 40 to 60 years old. On top of that, 52% of the respondents believe that they need more than S$1 million to achieve financial independence – defined as being free from financial worries.

Despite the large sum, 72% of Singapore residents believe that financial independence is a realistic goal and 43% of them are confident of managing their finances to achieve financial independence. However, the top three barriers to financial independence cited are the high cost of living, family responsibilities, followed by low income.

On the other hand, 39% of respondents responded that they are "often" or "always" feeling anxious about their financial future. Specifically, those aged 40-50 have higher financial anxiety, with 47% of them claiming that they feel anxious in high frequency ("often" and "always"). Similar sentiments are echoed in other urban cities with strong economies such as Hong Kong, where 28% of their workers reported that their financial situation is causing them higher levels of stress and anxiety^[1].

Out of 71% of respondents with financial plans, only 48% have started planning for their retirement, citing reasons such as prioritising other financial obligations, reliance on CPF, and lack of knowledge as challenges impeding their retirement planning.

The "CIMB Singapore: Attitudes and Beliefs towards Financial Independence Report 2025", done in collaboration with the Nanyang Centre for Marketing and Technology^[2], captured insights from over 500 Singapore residents aged 26-60 on their perspectives towards financial independence and retirement planning last December.

"We are privileged to collaborate with the Nanyang Centre for Marketing and Technology on this study, which revealed key insights into Singapore residents' attitudes and beliefs towards financial independence. Notably, younger Singapore residents show the most confidence in achieving early financial independence compared to other age groups. We recognise that the journey to financial independence is deeply personal and are dedicated to supporting all generations to help them navigate their unique financial journeys," said Raymond Tan, Head of Wealth Management and Preferred Banking at CIMB Singapore.

"We are delighted to partner with CIMB Singapore on this important research initiative examining financial independence. This collaboration highlights the strength of academia-industry partnerships in translating rigorous academic research into actionable insights for the business world. We believe this initiative will serve as a strong foundation for future collaborations, contributing to the development of a dynamic and mutually beneficial ecosystem," said Professor Sharon Ng, Deputy Dean at Nanyang Business School and Director at the Nanyang Centre for Marketing and Technology.

Navigating Generational Shifts in Financial Confidence

A growing number of younger Singapore residents are striving for early financial independence and demonstrating strong confidence in achieving their goals. Of the respondents under the age of 30, 60% aim to achieve financial independence before the age of 40, and 54% expressed confidence in their financial management skills. However, only 39% of respondents aged 40 to 50, and 43% of those aged 50 to 60, report feeling confident in managing their finances. Respondents under 30 are also most willing to seek financial planning advice (54%), compared to the 40 to 50 (35%), and 50 to 60 (28%) age groups.

This signals a clear generational divide in financial confidence and preference for financial advice, underscoring the need for a tailored approach to financial planning and requirement for financial service providers to understand the unique challenges faced by customers across different life stages.

Closing the Gap: Equipping Public to Make Informed Decisions about Their Financial Future

In the pursuit of financial independence, Singapore residents' top three preferred tools for financial growth are savings and fixed deposits, stocks and insurance. Yet, 39% of respondents shared that they are unsure about insurance's effectiveness as an investment tool, which suggests that they might not be maximizing the use of insurance for financial growth.

"As a leading foreign bank in Singapore for bancassurance with an 'open architecture' proposition, CIMB Singapore partners with multiple insurance providers to provide customers the best value. We are committed to uniting major insurers to educate and empower the public to take control of their path to financial independence. Building on the success of our inaugural event, this year's InsureXpo by CIMB had an exciting line-up of industry leaders and experts across private and public sectors, as well as personal finance content creators to address pressing topics on insurance, financial planning and well-being. We want to provide a comprehensive and convenient platform for the public to equip themselves with knowledge to make informed decisions about their financial future, all under one roof," said Merlyn Tsai, Head of Consumer Banking and Digital at CIMB Singapore.

About CIMB

CIMB is one of ASEAN's leading banking groups and Malaysia's second largest financial services provider by assets, with a market capitalisation of approximately RM88.0 billion as at 31 December 2024 and is listed on Bursa Malaysia. The Group is present in seven ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Vietnam and Philippines). Singapore is one of its most important markets with approximately 1,000 employees serving clients across consumer, commercial, wholesale and transaction banking products and services.  

CIMB is committed to providing customers with an extensive range of sustainable finance solutions as guided by the Group's Green, Social, Sustainable Impact Products and Services ("GSSIPS") framework, an internal taxonomy set by the Group to deliver impactful sustainable finance. The Group tripled its sustainable finance target to RM100 billion by 2024, a substantial increase from its RM30 billion target previously announced in 2021. CIMB is on track to achieving its RM100 billion target, recording over RM80 billion in sustainable finance, as of December 2023. 

View original content:https://www.prnewswire.com/apac/news-releases/2-out-of-3-singapore-residents-aspire-to-achieve-financial-independence-between-40-to-60-302430137.html

SOURCE CIMB Singapore