More Singaporeans eye early retirement but not many are confident they can achieve it

SINGAPORE: A sizeable number of Singaporeans are setting their sights on early retirement and financial freedom by midlife, yet many remain unsure about their financial preparedness, according to a new report by CIMB Singapore.

The report, developed in collaboration with the Nanyang Centre for Marketing and Technology, surveyed more than 500 Singapore residents aged between 26 and 60. It revealed that 63% of respondents aim to achieve financial independence between the ages of 40 and 60, even though over half believe they will need more than $1 million to do so.

Encouragingly, 72% still consider early retirement a realistic goal. However, confidence levels are mixed—only 43% of those surveyed say they feel capable of managing their finances to reach that target.

Young adults under 30 emerged as the most optimistic. Among them, 60% hope to attain financial independence before turning 40, and 54% express confidence in their ability to plan accordingly.

That optimism appears to wane with age. Just 39% of respondents in their 40s and 43% of those in their 50s said they feel confident managing their finances. Additionally, financial anxiety is more common among older respondents—nearly half (47%) of those aged 40 to 50 reported “often” or “always” feeling anxious about their financial future.

Several common challenges were cited as obstacles to achieving financial independence: the high cost of living, family responsibilities, and low income topped the list. While 71% of participants reported having a financial plan, less than half (48%) had actually begun planning for retirement.

Many attributed the delay to factors such as dependence on the Central Provident Fund (CPF), competing financial priorities, and a lack of knowledge about retirement planning.

The report also highlighted gaps in financial literacy. Although insurance ranks among the top three preferred tools for financial growth—alongside savings and stocks—39% of respondents expressed uncertainty about how effective insurance is as an investment option.