Extra Singaporeans reside paycheck to paycheck

Singapore’s repute for monetary prudence and excessive financial savings is exhibiting indicators of pressure. 

Rising prices and a rising prioritization for experiences and self-care are taking priority over long-term monetary planning, specialists noticed. 

“On the finish of each month, when my wage is in, I take advantage of it to pay my credit score payments, dad and mom’ allowance, insurances and investments,” stated 32-year-old Singaporean Jovan Yeo, who works for a digital financial institution providers agency. 

“In spite of everything these, my wage is again to zero once more, with nothing a lot to save lots of,” he stated, including that different bills go into journey, eating out and health class memberships.

60% of employees in Singapore had been residing paycheck to paycheck in 2024 — notably increased than regional friends together with China, South Korea, Japan and Indonesia, and above the Asia-Pacific common of 48%, a latest 2025 analysis from the payroll firm ADP discovered.

Whereas this was the primary time the analysis by ADP, which surveyed almost 38,000 folks in 34 markets, had this particular paycheck metric, different experiences paint an analogous image. A survey performed by international analysis advisory agency Forrester Analysis discovered that again in 2021, the share of Singaporean customers who lived paycheck to paycheck was decrease at 53%.

Moreover, whereas younger Singaporeans of their 20s are extra seemingly than different age teams to spend past their means with the intention to sustain with their friends, fewer Singaporeans between their 20s and 50s have began making monetary plans for his or her retirement as in comparison with 2023, Oversea-Chinese language Banking Corp’s most up-to-date monetary wellness report revealed in late 2024 confirmed.

Yeo acknowledged the significance of saving, however instructed CNBC that it’s an more and more herculean feat to save lots of with the nation’s rising prices of residing. 

“I can save if I do not exit, however I need to have a life and expertise life too!”

Maybank Analysis’s economist Brian Lee famous that sure macroeconomic components have made saving in Singapore objectively more durable. Regardless that Singapore’s inflation has not too long ago cooled to a four-year low, the nation nonetheless has one of many highest prices of residing, based on a number of surveys, as a result of structural components like costly housing and import prices.

In line with Numbeo’s value of residing indices, which swimming pools crowdsourced information throughout groceries, utilities and transportation fares, amongst different indicators, Singapore’s Price of Dwelling Index got here in fifth globally at 85.3 as of mid-2025, however first within the area. The studying additionally marked an 11% bounce yr over yr.

A survey revealed in April by information analytics agency YouGov discovered that the price of residing was the highest concern of 72% of the 1,845 Singaporeans polled, adopted by healthcare and the challenges of an growing old inhabitants.

Dwelling bills have risen sooner than incomes in the course of the post-pandemic bout of elevated shopper worth inflation,” Lee stated. Which means that the standard employee’s buying energy has shrunk barely on common annually for the reason that pandemic, as a substitute of rising because it did up to now.

Actual median employment revenue fell by 0.4% every year between 2019 and 2024, reversing the typical annual progress of two.2% seen from 2014 to 2019, based on information from Maybank.

Whereas actual wage progress recovered in 2024, it is predicted to average in 2025 on account of tariff-related affect, particularly for trade-reliant sectors like wholesale commerce and manufacturing, stated the nation’s Ministry of Manpower.

Housing prices have additional compounded the stress, Lee added. Resale costs of Singapore’s public residences — which home almost 80% of residents — rose 9.6% in 2024, faster than the 4.9% in 2023, information from the nation’s Housing Growth Board confirmed.

“Singapore has restricted land, house and pure assets. This interprets into excessive property costs, excessive automobile costs, and a reliance on imported meals,” the Maybank economist stated. “As a result of our reliance on imports, our home inflation may be very a lot correlated to international inflation, which has been excessive as a result of pandemic disruptions related to elevated items demand, labor shortages and provide chain snags,” he added.

Different specialists CNBC spoke to noticed that the difficulty goes past the upper value of residing — it displays deeper social and cultural shifts, corresponding to not feeling as a lot want to save lots of, or spending past their means.

PhillipCapital’s wealth supervisor, Joshua Lim, noticed that spending has turn out to be more and more aspirational. “Luxurious is an enormous factor right here — Mercedes is among the top-selling manufacturers. Individuals are pushing for a sure picture, a sure life-style.” 

Vehicles are considerably costlier in Singapore due to the Certificates of Entitlement system, which requires consumers to bid for a restricted allow simply to personal a automobile. The COE alone, which was launched to handle street congestion, can value over 100,000 Singapore {dollars}, generally exceeding the value of the automobile itself.

“For 100% spenders, or those that do not actually like to save lots of, it is also as a result of they’re spending what they have not even obtained but,” Lim stated, noting that purchase now, pay later plans are additionally making it simpler for Singaporeans to decide to future spending earlier than they’ve the money. In line with Singapore’s central financial institution, BNPL transactions reached round SG$440 million in 2021, a virtually fourfold improve from 2020. Analysis agency IDC expects BNPL funds in e-commerce transactions in Singapore to extend from 4% in 2023 to 6% by 2028.

This shift, Lim argues, is a part of a broader “debt society,” the place instantaneous gratification and life-style signaling trump long-term monetary prudence, as in comparison with earlier-generation Singaporeans.

Lim additionally talked about that the majority of his purchasers who dwell paycheck to paycheck are largely the middle-income earners, which make up 60% to 70% of his clientele looking for consultations on save extra. Excessive-income earners make up 20% of his consumer base, whereas these within the low-income bracket make up the least at 10%.

Consumerism is extra deeply entrenched than ever, which might make saving more durable, stated He Ruiming, co-founder of The Woke Salaryman, a Singapore-based weblog specializing in private finance training. 

“That is the technology who grew up on much more advertising, so the urge to purchase is much more, and so they evaluate themselves to much more folks,” stated He, who’s at present a council member in Singapore’s Nationwide Youth Council, a authorities physique centered on youth improvement.

34-year-old Singaporean Joyce Ang echoed that she doesn’t really feel the identical urgency as her dad and mom did when it got here to saving. 

“I really feel protected to spend, as a result of I haven’t got a companion but, and I nonetheless dwell with my dad and mom, so I haven’t got a home to fret about. I am not in want of cash instantly,” she added.

In comparison with her dad and mom’ technology, she believes the priorities of the youthful technology have modified. “In my dad and mom’ time, they had been saving to have kids. However these days not each one among us desires youngsters… so we do not have to really scrimp and save a lot,” stated Ang, who has a take-home pay of round SG$3,800 ($2,949) monthly.

Singaporeans’ take-home pay is decrease than their full wage due to obligatory Central Provident Fund (CPF) contributions. Each month, a portion of their wage — as much as 20% for workers beneath 55 — is routinely deducted for retirement, housing, and healthcare financial savings. 

Whereas Singaporeans can solely withdraw $5,000 or extra from CPF financial savings as soon as they hit 55, they will faucet on these financial savings to pay for housing and a few medical prices at any age.

“It isn’t that troublesome to save lots of. I put aside a few of my allowance for my dad and mom so if I wished to, I can simply put aside one other pool of cash for financial savings,” stated Ang.

“However I do not suppose I want to try this at this cut-off date,” she chuckled.