More Singaporeans aim to save over S$1 million and retire by 40, study finds - Singapore News

SINGAPORE: Singaporeans are setting their sights on bigger financial goals and hoping to achieve them at a younger age, according to a new joint study by CIMB Singapore and Nanyang Technological University (NTU).

The second edition of the Attitudes and Beliefs towards Financial Independence Report found that more than half of respondents now aspire to accumulate at least $1 million before considering themselves financially independent. The figure rose to 56.3 per cent this year, up from 52.3 per cent in 2025.

Among them, 35.8 per cent identified between $1 million and $2.5 million as the ideal range for achieving financial independence.

The study also found that expectations around when people hope to retire or become financially free are shifting earlier. While retirement in one’s 50s had been the common benchmark a year ago, respondents now increasingly see their 40s as the target. Gen Z respondents were even more ambitious, with some envisioning financial freedom in their 20s or 30s.

The findings were unveiled on May 23 during the third edition of InsureXpo® 2026, which adopted a “Money Gym” concept aimed at promoting financial fitness and resilience. More than 1,000 Singapore residents aged between 18 and 60 took part in the survey.

The event brought together insurers including Singlife, AIA, FWD and Income, alongside policymakers, academics and industry experts. Interactive stations were set up to encourage participants to strengthen their financial planning and money management skills.

Despite the growing optimism around financial independence, the report found that anxiety about money remains widespread.

While 78 per cent of respondents said they believe financial independence is achievable, confidence levels were far more muted. Only 36 per cent described themselves as “moderately confident” about reaching their goals, while 34.6 per cent reported feeling frequent or constant anxiety over their financial future.

The findings also highlighted stark generational differences. Gen Z respondents emerged as the most anxious group, with 41.2 per cent reporting frequent financial worries.

Millennials, meanwhile, were the most confident generation, with 51.8 per cent expressing strong confidence in achieving financial independence. Gen X respondents fell somewhere in between, with 38.3 per cent saying they experienced regular anxiety and 30.5 per cent reporting strong confidence.

The study pointed to a growing disconnect between financial ambition and actual planning, as well.

Although many respondents expressed strong aspirations for financial independence, fewer than half, or 46.4 per cent, had started retirement planning.

High living costs were identified as the biggest obstacle, cited by 70.7 per cent of respondents. Other commonly mentioned barriers included low income at 54 per cent and family responsibilities at 53.4 per cent.

Respondents also pointed to concerns such as market volatility, limited financial education and lifestyle pressures, including spending temptations.

Among those who had yet to begin retirement planning, 42.2 per cent said competing priorities were delaying them, while 34.4 per cent said they were unsure how to get started. Another 31.9 per cent believed it was still too early to begin planning.

The report found that motivations for financial independence differed across generations.

For Gen Z, the strongest motivation was having autonomy and control over income and spending, cited by 25.7 per cent of respondents. Millennials were more focused on wealth accumulation, while Gen X respondents prioritised becoming debt-free.

The study also examined the financial attitudes of the “sandwich generation”, referring to those simultaneously caring for both parents and children.

This group demonstrated significantly higher financial ambitions than other respondents, with 64.4 per cent aiming to accumulate at least $1 million, compared with 51.7 per cent among non-sandwich respondents.

Researchers said this likely reflected the financial burden of supporting multiple generations.

The sandwich generation also appeared more proactive in financial planning. More than 91 per cent said they already had a financial independence plan, while 60.9 per cent said they were open to seeking professional financial advice. Nearly two-thirds also viewed insurance as an investment tool.

The report suggested that access to financial advice could play a significant role in improving both confidence and peace of mind.

Among respondents who sought professional guidance, only 25.4 per cent reported frequent financial anxiety, compared with 42.2 per cent among those who did not seek advice.

Confidence levels also differed sharply. Nearly two-thirds, or 65.8 per cent, of those who engaged a financial planner expressed confidence in achieving financial independence, compared with just 28.2 per cent among those without professional guidance.

The same pattern was observed among respondents who had formal financial plans. Only 30.8 per cent of planners reported frequent anxiety, compared with 51.9 per cent of those without a plan. Confidence levels among planners stood at 52.3 per cent, four times higher than the 13 per cent recorded among non-planners.

Perceptions of insurance also appear to be evolving. More than half of respondents, or 52.6 per cent, now see insurance as a tool that can support financial independence, up from 45 per cent last year.

The report concluded that financial independence is increasingly viewed not as a single milestone, but as an ongoing process that requires resilience at different stages of life.

It added that financial institutions could help close the gap between ambition and reality by offering more integrated support, linking savings, insurance, retirement planning and wealth advisory services into a broader financial journey.

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