Do Singaporeans Feel Financially Free? — Financial Independence Report 2025 by CIMB Singapore

Financial independence (FI) has become a universal aspiration for many Singapore residents in today's fast-paced and ever-changing economic landscape.

According to the CIMB Singapore: Attitudes and Beliefs towards Financial Independence Report 2025, two out of three Singaporeans aim to achieve financial independence between the ages of 40 and 60.

But what does this mean for different generations, and how are they planning—or not planning—to get there?

We explore the key findings from CIMB’s report, exploring aspirations, challenges, and strategies for achieving financial independence.

Whether you’re under 30, navigating your peak earning years, or planning for retirement, these insights will help you understand where Singapore stands on the journey to financial freedom.

Aspirations for Financial Independence: A Shared Goal

This sentiment is consistent across all age groups, underscoring the universal perception that financial freedom requires substantial savings.

Barriers to Achieving Financial Independence

Despite widespread aspirations, several barriers stand in the way of achieving financial independence:

Top 3 Challenges

1. High Cost of Living: Rising expenses make it harder to save and invest.
2. Family Responsibilities: Supporting dependents adds financial strain.
3. Low Income: Limited earnings restrict the ability to build wealth.

Planning Preparedness

• 71% of respondents have some form of financial plan, but only 48% have started planning specifically for retirement.
• Reasons for Not Planning:
  1. Financial obligations (e.g., debt, daily expenses).
  2. Over-reliance on CPF as a sole retirement solution.
  3. Lack of knowledge about financial planning tools and strategies.

Strategies for Financial Growth

Singapore residents are leveraging various tools to grow their wealth, but opinions on their effectiveness vary:

Psychological Factors: Confidence vs. Anxiety

1. Optimism About Achievability

• 72% believe financial independence is a realistic goal, showcasing widespread optimism.

2. Financial Anxiety

• 39% of respondents report feeling financial anxiety “often” or “always.”
• Peak Anxiety Group: Those aged 40–50, likely due to balancing family responsibilities, career pressures, and retirement planning.

Key Takeaways: Lessons for Every Age Group

For Young Adults (Under 30)

• Strengths: High confidence and willingness to seek advice position this group well for early financial independence.
• Action Steps: Start investing in diversified portfolios (e.g., stocks, ETFs) and leverage tools like CPF and insurance for long-term growth.

For Middle-Aged Groups (40–50)

• Challenges: Higher financial anxiety and competing priorities can derail progress.
• Action Steps: Reassess financial plans, reduce reliance on CPF alone, and explore income-generating investments to bridge gaps.

For Older Adults (50+)

• Challenges: Limited time to accumulate wealth necessitates strategic planning.
• Action Steps: Focus on preserving capital while ensuring steady income through annuities, dividend-paying stocks, or rental properties.

The CIMB Singapore Report 2025 paints a clear picture: Financial independence is a shared aspiration. However, achieving it requires overcoming significant hurdles.

From high living costs to family responsibilities and lack of planning, the challenges are real. But so are the opportunities.

By understanding your financial goals, addressing barriers, and adopting tailored strategies, you can take meaningful steps toward financial freedom.

Whether you’re just starting out or nearing retirement, remember that every small step counts.

References

• CIMB Singapore: Attitudes and Beliefs towards Financial Independence Report 2025.