Retirement readiness is about more than reaching a wealth target. It starts with understanding the life you want, making a plan and building the habits that can help you get there.
Many Singaporeans aspire to achieve financial independence, but relatively few have taken concrete steps towards retirement planning. While accumulating $1 million or more has become a common goal, new research by CIMB and Nanyang Technological University (NTU) suggests that retirement readiness is about far more than chasing a headline figure.
At InsureXpo by CIMB 2026, the DollarsAndSense Podcast spoke with Professor Sharon Ng, Deputy Dean at NTU, about what the research reveals about how Singaporeans think about financial independence, retirement readiness and the psychology behind long-term financial planning.
Financial Independence Starts With The Life You Want To Live
Retirement planning often begins with one question: “How much do I need?”
While having a financial target can provide direction, Professor Ng believes the conversation should begin with a different question: what kind of life do you want your finances to support?
As she explains, “If you’re looking at it from being free of financial stress, then you take into account what you need, what amount you need to reach that, and how that makes you feel psychologically. That’s a more holistic way to look at it.”
Thinking about retirement this way recognises that financial independence looks different for everyone. Someone who prefers a simpler lifestyle may need far less than someone who hopes to travel regularly or maintain higher monthly spending.
Rather than adopting a retirement target from social media or headlines, it may be more useful to work backwards from the lifestyle you hope to maintain.
Why A Million-Dollar Goal Can Be Useful And Misleading
The study found that more Singaporeans now aspire to accumulate at least $1 million, with many seeing between $1 million and $2.5 million as an ideal retirement target.
Having a financial goal can help you measure progress. Problems arise when the number becomes something to chase rather than a guide for planning.
For example, someone who aims to accumulate $1 million by age 40 may feel discouraged if they reach it at 42 instead, even though those two additional years may have little impact on their long-term financial security.
Rather than treating financial independence as a pass-or-fail milestone, Professor Ng believes it is more useful to see it as a long-term journey, where consistent progress matters more than meeting an arbitrary deadline.
Early Retirement Stories Can Be Motivating, But They Are Not The Norm
The Financial Independence, Retire Early (FIRE) movement has made early retirement seem increasingly attainable. Social media is filled with stories of people achieving financial independence in their 30s or early 40s.
While these examples can be inspiring, they often reflect exceptional circumstances, such as unusually high incomes, disciplined saving habits or successful investing. For many Singaporeans, building enough wealth to retire within 15 to 20 years of starting work may not be realistic.
That does not mean these stories have no value.
“The fact that younger people are thinking about financial independence is already a plus,” says Professor Ng.
Even if someone eventually retires later than planned, starting to save and invest earlier gives them more time to benefit from compounding and develop healthy financial habits.
The Biggest Challenge Is Taking The First Step
Despite recognising the importance of retirement planning, more than half of the Singapore residents surveyed have yet to begin.
For many, the challenge is not a lack of awareness but competing priorities. Mortgage repayments, raising children and everyday living expenses naturally demand more immediate attention than a goal that may still be decades away.
Professor Ng compares retirement planning to staying fit. Most people know what they should do, but taking the first step is often the hardest part.
Having a plan can make the process more manageable by breaking a distant objective into smaller, achievable milestones. Instead of worrying about one overwhelming end goal, people can focus on making steady progress over time.
Read Also: Fitness Vs Finance: 5 Ways Planning Your Future Is Similar To Keeping Fit
Planning Can Reduce Anxiety Even When The Future Is Uncertain
The research found that people with a financial independence plan were generally more confident about reaching their goals and experienced lower levels of financial anxiety.
That confidence does not come from believing the future is predictable. Economic cycles, geopolitical tensions and technological change mean uncertainty will always be part of financial planning.
Gen Z respondents, in particular, reported the highest levels of financial anxiety, reflecting concerns about today’s rapidly changing job market and future opportunities.
Planning cannot remove uncertainty, but it can give people something they can control. Focusing on practical actions rather than unpredictable events can make long-term financial goals feel more manageable.
Retirement Planning Is Also About Protecting Your Wealth
Growing wealth is only one part of retirement readiness. Protecting it is equally important.
Investments are designed to grow wealth over time, while insurance serves a different purpose. It can help protect against major financial setbacks that might otherwise derail years of careful planning.
A serious illness or unexpected event can quickly erode retirement savings if adequate protection is not already in place.
Professor Ng says her own perspective has changed over time.
“When I was younger, I kept feeling that the insurance premiums I paid were just a cost. Now that I’m older, I see the value of it. When you need it, it’s there, and it doesn’t eat into the retirement funds you’ve built.”
Rather than viewing insurance and investing as competing priorities, it may be more useful to see them as complementary parts of a long-term financial plan.
A Simple Financial Health Check: The Sleep Test
Instead of focusing only on complicated retirement calculations or constantly checking investment returns, Professor Ng offers a simpler way to assess financial readiness: the “sleep test”.
If you can sleep soundly knowing that your emergency savings, insurance protection and long-term plans are reasonably in place, you may be in a stronger financial position than someone who is constantly worried about unexpected expenses or setbacks.
Financial independence is ultimately less about reaching a particular number than having confidence that your finances can support the life you want.
Like physical fitness, financial fitness is built through small, consistent actions over time. The earlier you begin, the more time you give yourself to make steady progress towards the future you want.
Read Also: Retirement Planning In Singapore: How Much Do I Need To Save And Invest To Retire At 55?
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