The majority of expats living in Singapore believe their relocation will accelerate their financial freedom, according to a new report by St. James's Place Asia.
The findings show 93% of expats deem it possible to fast-track greater wealth while 83% expect to be able to retire earlier.
More than half (57%) of Singapore respondents believe achieving financial freedom would have taken at least five years longer had they never lived overseas, while 59% believe living abroad will bring forward their retirement by at least three years. Indeed, 96% earn more than they would in their home country and 97% save more each month after expenses, the report found.
The report, titled Money on the Move, canvassed affluent and high-net-worth expats living in Singapore, and found many are happy to settle in the city-state for the long run; 78% plan to stay for at least eight years, 50% say they will likely only return to their home country upon retirement, and 16% are unlikely to return at all.
Wealthier expats are the most likely to settle overseas permanently, with high-net-worth respondents (31%) more than twice as likely to say they will not return home than mass affluent and affluent respondents combined (14%).
However, many expats in Singapore find managing assets and wealth across borders difficult, with 85% of expats citing exposure to currency volatility as a barrier to effective wealth accumulation. Other obstacles include limited access to preferred investment products and the complexity of cross-border regulations and taxes, while the high cost of living in the city-state and insufficient time to manage finances also weigh on expats.
Despite the complexities of managing and owning assets across borders, only 27% of Singapore expats consider themselves highly financially literate.
Expats in Singapore using professional financial advisers to manage their global wealth account for 53% of the respondents, with 89% admitting that obtaining the right financial advice earlier would have improved their investment earnings and savings.
On average, they estimate they could have saved US$58,464, or US$9,744 per year of living abroad, had they sought the right advice earlier. Meanwhile, 90% say a better understanding of cross-jurisdictional tax rules would have helped them avoid tax losses, with the average estimated loss being US$53,980, or US$8,997 per year of living abroad.
Oliver Wickham, Asia & Middle East partnership director at St. James’s Place, said: “Living in Singapore is full of economic opportunities, accelerating both earnings potential and financial freedom. Yet expats face challenges on the road to wealth accumulation due to the complexities of managing assets in different countries. As wealth becomes increasingly mobile across borders, having the right expertise and knowledge to manage global assets, and financial plans, is essential.”
He added: “The value of financial advice for expats goes beyond achieving better returns. It is about an ongoing relationship that evolves with increasingly international lives, offering continuity, clarity and confidence for the future.”
