Connect with us

Current Affairs

More than two in five Singaporeans believe they will never achieve financial freedom, survey reveals

Published

on

A recent survey by Singlife has revealed that more than two in five people in Singapore believe they will never achieve financial freedom based on their current financial trajectory.

The poll, part of Singlife’s second Financial Freedom Index, shows significant concerns among Singaporeans and permanent residents regarding their financial futures.

According to the survey, 44 per cent of respondents expressed doubts about ever reaching financial freedom, citing major roadblocks such as insufficient income (53 per cent), unforeseen expenses (38 per cent), job insecurity (32 per cent), and debt repayment burdens (28 per cent). These challenges have contributed to a decline in the overall Financial Freedom Index score, which dropped to 58 out of 100 in 2024, down from 60 in 2023.

The survey, conducted between April and June 2024 among 3,000 Singaporeans and permanent residents aged 18 to 65, also found that respondents believe they need approximately S$612,045 to feel financially free, an increase of 8 per cent from S$566,640 in 2023.

However, with the median yearly savings reduced to S$20,195, it may take individuals around 30 years to achieve this goal, up from 27 years in the previous year. This extended timeline reflects the impact of inflation and rising costs of living on consumer sentiment.

Despite these challenges, there is a slight increase in the number of respondents who believe they know how to achieve financial freedom, rising from 49 per cent in 2023 to 55 per cent in 2024. However, the survey also highlighted significant gaps in financial preparedness, particularly among the 35- to 44-year-old age group, who find it most difficult to attain financial freedom.

Retirement Goals and Financial Preparedness

The survey revealed that four in five respondents aim to retire by age 65, slightly above Singapore’s legislated retirement age of 63. To do so comfortably, they estimate needing a median of S$2,856 per month for living expenses. However, with current median monthly savings of $1,682, there is a significant gap between savings and expected retirement needs, underscoring the importance of building up cash reserves early.

Interestingly, nearly 80 per cent of respondents plan to retire in Singapore, while a minority prefer to retire overseas due to factors such as lower costs of living (71 per cent), a slower pace of life (63 per cent), and more favorable weather (35 per cent). Top retirement destinations include Malaysia, Australia, New Zealand, and Thailand.

The Financial Impact of Parenthood

The survey also explored the long-term financial impact of parenthood, with half of the respondents estimating that more than S$500,000 is required to raise a child in Singapore from birth to age 21, based on a median monthly expense of S$1,918.

Over 40 per cent believe that having children will delay their retirement age and ability to achieve financial freedom by an average of 14 to 15 years. As a result, 54 per cent of respondents without children said they do not intend to have any, and 80 per cent of those with at least one child do not plan to have more.

Protection Gaps and Preparedness for Unexpected Events

The survey also revealed that while most consumers have on average three types of insurance products, only 57 per cent are aware of or claim to have life insurance coverage, and just 38 per cent have critical illness protection.

These figures suggest a significant protection gap, particularly when considering industry guidelines that recommend life insurance coverage of at least nine times one’s annual income. However, the median coverage among respondents was only S$286,670, less than half the recommended level.

Moreover, while most respondents (78 per cent) reported having at least three months of emergency funds, only one in three felt they had adequate savings to cushion against unexpected events. This finding highlights the need for better financial planning and risk management among Singaporeans to secure their financial future.

Singlife’s Group Head of Brand, Communications, Marketing and Experience, Debra Soon, emphasized the importance of understanding these challenges to help Singaporeans take meaningful steps toward achieving their financial freedom dreams. As Singaporeans navigate the complexities of financial planning amid rising costs, the insights from this survey provide valuable guidance for both individuals and financial planners.

The post More than two in five Singaporeans believe they will never achieve financial freedom, survey reveals appeared first on Gutzy Asia.

Continue Reading
Click to comment
Subscribe
Notify of
0 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Current Affairs

Reforming Singapore’s defamation laws: Preventing legal weapons against free speech

Opinion: The tragic suicide of Geno Ong, linked to the financial stress from a defamation lawsuit, raises a critical issue: Singapore’s defamation laws need reform. These laws must not be weaponized to silence individuals.

Published

on

by Alexandar Chia

This week, we hear the tragic story of the suicide of Geno Ong, with Ong citing the financial stress from the defamation lawsuit against her by Raymond Ng and Iris Koh.

Regardless of who’s right and who’s wrong, this Koh/Ng vs Ong affair raises a wider question at play – the issue of Singapore’s defamation laws and how it needs to be tightened.

Why is this needed? This is because defamation suits cannot be weaponised the way they have been in Singapore law. It cannot be used to threaten people into “shutting up”.

Article 14(2)(a) of the Constitution may permit laws to be passed to restrict free speech in the area of defamation, but it does not remove the fact that Article 14(1)(a) is still law, and it permits freedom of speech.

As such, although Article 14(2)(a) allows restrictions to be placed on freedom of speech with regard to the issue of defamation, it must not be to the extent where Article 14(1)(a)’s rights and liberties are not curtailed completely or heavily infringed on.

Sadly, that is the case with regard to precedence in defamation suits.

Let’s have a look at the defamation suit then-PM Goh Chok Tong filed against Dr Chee Soon Juan after GE 2001 for questions Dr Chee asked publicly about a $17 billion loan made to Suharto.

If we look at point 12 of the above link, in the “lawyer’s letter” sent to Dr Chee, Goh’s case of himself being defamed centred on lines Dr Chee used in his question, such as “you can run but you can’t hide”, and “did he not tell you about the $17 billion loan”?

In the West, such lines of questioning are easily understood at worse as hyperbolically figurative expressions with the gist of the meaning behind such questioning on why the loan to Suharto was made.

Unfortunately, Singapore’s defamation laws saw Dr Chee’s actions of imputing ill motives on Goh, when in the West, it is expected of incumbents to take the kind of questions Dr Chee asked, and such questions asked of incumbent office holders are not uncommon.

And the law permits pretty flimsy reasons such as “withdrawal of allegations” to be used as a deciding factor if a statement is defamatory or not – this is as per points 66-69 of the judgement.

This is not to imply or impute ill intent on Singapore courts. Rather, it shows how defamation laws in Singapore needs to be tightened, to ensure that a possible future scenario where it is weaponised as a “shut-up tool”, occurs.

These are how I suggest it is to be done –

  1. The law has to make mandatory, that for a case to go into a full lawsuit, there has to be a 3-round exchange of talking points and two attempts at legal mediation.
  2. Summary judgment should be banned from defamation suits, unless if one party fails to adduce evidence or a defence.
  3. A statement is to be proven false, hence, defamatory, if there is strictly material along with circumstantial evidence showing that the statement is false. Apologies and related should not be used as main determinants, given how many of these statements are made in the heat of the moment, from the natural feelings of threat and intimidation from a defamation suit.
  4. A question should only be considered defamatory if it has been repeated, after material facts of evidence are produced showing, beyond reasonable doubt, that the message behind the question, is “not so”, and if there is a directly mentioned subject in the question. For example, if an Opposition MP, Mr A, was found to be poisoned with a banned substance, and I ask openly on how Mr A got access to that substance, given that its banned, I can’t be found to have “defamed the government” with the question as 1) the government was not mentioned directly and 2) if the government has not produced material evidence that they indeed had no role in the poisoning affair, if they were directly mentioned.
  5. Damages should be tiered, with these tiers coded into the Defamation Act – the highest quantum of damages (i.e. those of a six-figured nature) is only to be reserved if the subject of defamation lost any form of office, revenue or position, or directly quantifiable public standing, or was subjected to criminal action, because of the act of defamation. If none of such occur, the maximum amount of damages a plaintiff in a defamation can claim is a 4-figure amount capped at $2000. This will prevent rich and powerful figures from using defamation suits and 6-figure damages to intimidate their questioners and detractors.
  6. All defendants of defamation suit should be allowed full access to legal aid schemes.

Again, this piece does not suggest bad-faith malpractice by the courts in Singapore. Rather, it is to suggest how to tighten up defamation laws to avoid it being used as the silencing hatchet.

Continue Reading

Current Affairs

Man arrested for alleged housebreaking and theft of mobile phones in Yishun

A 23-year-old man was arrested for allegedly breaking into a Yishun Ring Road rental flat and stealing eight mobile phones worth S$3,400 from five tenants. The Singapore Police responded swiftly on 1 September, identifying and apprehending the suspect on the same day. The man has been charged with housebreaking, which carries a potential 10-year jail term.

Published

on

SINGAPORE: A 23-year-old man has been arrested for allegedly breaking into a rental flat along Yishun Ring Road and stealing eight mobile phones from five tenants.

The incident occurred in the early hours on Sunday (1 September), according to a statement from the Singapore Police Force.

The authorities reported that they received a call for assistance at around 5 a.m. on that day.

Officers from the Woodlands Police Division quickly responded and, through ground enquiries and police camera footage, were able to identify and apprehend the suspect on the same day.

The stolen mobile phones, with an estimated total value of approximately S$3,400, were recovered hidden under a nearby bin.

The suspect was charged in court on Monday with housebreaking with the intent to commit theft.

If convicted, he could face a jail term of up to 10 years and a fine.

In light of this incident, the police have advised property owners to take precautions to prevent similar crimes.

They recommend securing all doors, windows, and other openings with good quality grilles and padlocks when leaving premises unattended, even for short periods.

The installation of burglar alarms, motion sensor lights, and CCTV cameras to cover access points is also advised. Additionally, residents are urged to avoid keeping large sums of cash and valuables in their homes.

The investigation is ongoing.

Last month, police disclosed that a recent uptick in housebreaking incidents in private residential estates across Singapore has been traced to foreign syndicates, primarily involving Chinese nationals.

Preliminary investigations indicate that these syndicates operate in small groups, targeting homes by scaling perimeter walls or fences.

The suspects are believed to be transient travelers who enter Singapore on Social Visit Passes, typically just a day or two before committing the crimes.

Before this recent surge in break-ins, housebreaking cases were on the decline, with 59 reported in the first half of this year compared to 70 during the same period last year.

However, between 1 June and 4 August 2024, there were 10 reported housebreaking incidents, predominantly in private estates around the Rail Corridor and Bukit Timah Road.

The SPF has intensified efforts to engage residents near high-risk areas by distributing crime prevention advisories, erecting alert signs, and training them to patrol their neighborhoods, leading to an increase in reports of suspicious activity.

Continue Reading

Trending