Extra Singaporeans live paycheck to paycheck

Singapore’s fame for monetary prudence and excessive financial savings is displaying 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 exploit it to pay my credit score payments, mother and father’ allowance, insurances and investments,” stated 31-year-old Singaporean Jovan Yeo, who works for a digital financial institution providers agency. 

“In any case these, my wage is again to zero once more, with nothing a lot to avoid wasting,” he stated, including that different bills go into journey, eating out and health class memberships.

60% of employees in Singapore have been residing paycheck to paycheck in 2024 — notably greater 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 practically 38,000 individuals in 34 markets, had this particular paycheck metric, different studies 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 doubtless than different age teams to spend past their means as a way 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 printed in late 2024 confirmed.

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

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

Maybank Analysis’s economist Brian Lee famous that sure macroeconomic elements have made saving in Singapore objectively more durable. Though Singapore’s inflation has just lately 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 consequence of structural elements like costly housing and import prices.

In response to Numbeo’s price of residing indices, which swimming pools crowdsourced knowledge 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% soar 12 months over 12 months.

A survey printed in April by knowledge 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 quicker than incomes throughout the post-pandemic bout of elevated client value inflation,” Lee stated. Because of this the everyday employee’s buying energy has shrunk barely on common every year for the reason that pandemic, as a substitute of rising because it did up to now.

Actual median employment earnings fell by 0.4% each year between 2019 and 2024, reversing the common annual progress of two.2% seen from 2014 to 2019, based on knowledge 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 strain, Lee added. Resale costs of Singapore’s public flats — which home practically 80% of residents — rose 9.6% in 2024, faster than the 4.9% in 2023, knowledge from the nation’s Housing Improvement Board confirmed.

“Singapore has restricted land, area and pure assets. This interprets into excessive property costs, excessive automobile costs, and a reliance on imported meals,” the Maybank economist stated. “Attributable to our reliance on imports, our home inflation could be very a lot correlated to international inflation, which has been excessive as a consequence 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 price of residing — it displays deeper social and cultural shifts, reminiscent of not feeling as a lot want to avoid wasting, or spending past their means.

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

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

“For 100% spenders, or those that do not actually like to avoid wasting, it is also as a result of they’re spending what they have not even acquired 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 response to Singapore’s central financial institution, BNPL transactions reached round SG$440 million in 2021, an almost 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 way of life signaling trump long-term monetary prudence, as in comparison with earlier-generation Singaporeans.

Lim additionally talked about that the majority of his purchasers who reside paycheck to paycheck are largely the middle-income earners, which make up 60% to 70% of his clientele looking for consultations on the best way to save extra. Excessive-income earners make up 20% of his shopper 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 and marketing, so the urge to purchase is much more, and so they examine themselves to much more individuals,” 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 mother and father 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 reside with my mother and father, so I haven’t got a home to fret about. I am not in want of cash instantly,” she added.

In comparison with her mother and father’ technology, she believes the priorities of the youthful technology have modified. “In my mother and father’ time, they have been saving to have youngsters. However these days not each considered one of 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) per thirty days.

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

Singaporeans can faucet on these financial savings to pay for housing and a few medical prices at any age. Nevertheless, those that haven’t put aside their Full Retirement Sum (FRS) can solely withdraw a most of $5,000 from their CPF financial savings as soon as they hit 55.

“It is not that tough to avoid wasting. I put aside a few of my allowance for my mother and father so if I needed 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.