Commentary: Single and secure? Does family life come at the expense of financial freedom?

SINGAPORE: Family performs a declining function in Singaporeans’ journey to a greater life.

At least in response to AXA Insurance Singapore when it launched findings of its Better Life Index 2021.

Fellow financial bloggers alerted me to this fascinating discovering that millennials seen financial freedom as a more vital goal in life than having a contented family.

Unsurprising maybe, when 2020 census knowledge from the Department of Statistics confirmed a rising proportion of singles, significantly these aged 25 to 34.

Still, the conclusion appeared miserable and alarmist. Surely they aren’t mutually unique pursuits on this journey of life? Though having financial management is usually an vital prerequisite for a contented family life so we don’t must endure day-to-day worries.

My personal expertise displays this: More than a decade in the past, I labored aggressively to dwell inside my funding earnings as a bachelor and grew it additional to assist my spouse and two kids.

In truth, my family of 4 had no breadwinner in the 4 years I pursued my legislation diploma.

Today, regardless that we will dwell comfortably on funding returns, I continued with my enterprise to put aside financial savings for the youngsters’ schooling and our future healthcare wants.

But simply how a lot do we have to put for a contented, fufilled family life of consolation?

Financial advisors say you must give attention to the protected fee of withdrawal - a staple in retirement planning that states we will spend the quantity equal to 4 per cent of financial savings at retirement for 30 years with out operating out of cash.  

Going by this, somebody with S$1 million in investments might spend S$40,000 yearly, inflation-adjusted, for about 30 to 40 years.