More Singaporeans are living paycheck to paycheck
Customers who buy food in a supermarket in Singapore.
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Singapore’s reputation on financial precaution and high savings shows signs of coercion.
Experts give priority to long -term financial planning, increasing priority for increasing costs and experiences and self -care.
“At the end of each month, when I have a salary, I use my credit bills, parents’ allowance, insurance and investments,” working for a digital bank services company. He said.
“After all, my salary has returned to zero again, without much to save, dedi he said, and other expenses went to travel, dinner and fitness class membership.
60% of the workers in Singapore were experiencing salary withdrawal in 2024-especially from regional peers such as China, South Korea, Japan and Indonesia, and 48% of the Asian-Pacific average. Bordro Company A 2025 research found recently from ADP.
I can save if I don’t go out, but I want to experience a life and life!
Jovan Yeo
32 -year -old Singapore
This is a similar picture, as ADP’s research has this special salary metric, which investigates approximately 38,000 people in 34 markets. A questionnaire Forrester Research, conducted by the Global Research Consultancy company, found that the percentage of Singapore consumers who had a salary shoot in 2021 was 53%lower.
Moreover, even though it is more likely to spend beyond their vehicles to keep up with the peers of young Singaporers in their 20s, less Singapore between the 20s and 50s began to make financial plans for their retirement compared to 2023. The latest financial health report published It was shown at the end of 2024.
Yeo accepted the importance of savings, but he told CNBC that saving the country’s increasing living costs was an increasing feat.
“I can save it if I don’t go out, but I want to experience a life and life!”
Maybank Research’s economist Brian Lee said some macroeconomic factors objectively difficult to save in Singapore. Although Singapore’s inflation has recently cooled down to the lowest level of four years, the country still has one of the highest living costs due to structural factors such as expensive housing and import costs.
Accordingly NUMBEO’S LIFE INDEXS COSTIn addition to other indicators, Singapore’s life index costs are crowded data pools between food, public service and transportation fees. Reading was also a leap of 11% from year to year.
Questionnaire Published by data analysis company Yougov in April The cost of life found that 72% of Singaporers have a survey, which was the greatest concern of the difficulties of health care and aging population.
Living costs increased faster than income during the post -pandemic match of high consumer price inflation, Lee Lee said.
According to Maybank’s data, the real Median employment income fell by 0.4% per year between 2019 and 2024, reversing an average annual growth of 2.2% from 2014 to 2014 between 2014-2024.
While real wage growth improves in 2024 It is expected to be moderate in 2025 As a result of the impact on the tariff, especially for trade sectors Wholesale trade and manufacturingHe said the country’s Ministry of Manpower.
Lee, housing costs further combine the pressure, he added. Re -sales prices of Singapore’s public apartments – which house Approximately 80% of the residents – 9.6% rose in 2024faster 4.9% in 2023The data obtained from the country’s housing development committee showed.
“Singapore has limited land, area and natural resources. This relys on high real estate prices, high vehicle prices and imported foods.” He said. “Because of our confidence in imports, our internal inflation, increasing demand for goods, labor shortage and supply chain attachment is very highly related to global inflation, which is high due to pandemic interruptions associated.”
Singapore’s ‘100% spending’
Other experts observed that CNBC has gone beyond the higher the cost of living – reflecting deeper social and cultural changes, such as not needing too much to save or spending beyond their vehicles.
Joshua Lim, Director of Fillipcapital, observed that expenditures are more and more willing. “Luxury is one of the best-selling brands here. People forced them for a certain lifestyle.”
In Singapore, automobiles are significantly more expensive because of the certificate of authorization system that requires buyers to bid for a limited permission to have one vehicle. COE alone introduced to manage road blockage More than 100,000 costs Singapore Dollar, sometimes exceeds the price of the car.
“For those who spend 100%, or for those who don’t really like to save, because they spend what they don’t even have yet to, Lim said now that the purchase makes it easier for later plans to commit future expenses before paying cash. According to the Central Bank of Singapore, BNPL transactions reached around 440 million dollars in SG 2021almost four -fold increase From 2020 onwards, IDC expects BNPL payments to increase from 4% in 2023 in e-commerce transactions in Singapore. 6% by 2028.
Lim argues that this change is part of a wider “debt society” in which Trump points to long -term financial cautiousness compared to previous generation Singaporers.
Lim also stated that most of the customers with salary shoots are largely moderate winners, which is in search of consultancy on how to save more than 60% to 70% of the customer. High -income winners constitute 20% of the customer base, while low -income brackets occur at least 10%.
Generation differences?
Ruiming, the founding partner of Woke Salaryman, a Singapore -based blog focusing on personal finance education, said that consumer is deeply settled than ever.
In Singapore’s National Youth Council, he is a member of a council with a government organ that focuses on the development of youth, “This is much more growing on marketing, so the urge to purchase is much more and they compare themselves with more people.”
34 -year -old Singapore Joyce Ang reiterated that he did not feel the same urgency as his family.
Orum I feel safe to spend, because I don’t have a partner yet and I still live with my family, so I don’t have a house to worry about. I don’t need money right away, ”he added.
Compared to the generation of his parents, he believes that the priorities of the young generation have changed. “In the time of my parents, they saved to have children. But these days we don’t want children … So we really don’t have to scare and save too much.” He said.
The host salary of the Singaporers is lower than their salaries Compulsory Central Specialization Fund (CPF) Contributions. Every month, a part of its salaries – up to 20% for employees under the age of 55 – is automatically deducted for retirement, housing and health savings.
After reaching 55, Singaporers can only attract CPF savings or more, while at all ages, housing and some medical costs can address these savings to pay for payment.
“It is not so difficult to save. I put aside a part of the allowance for my family, so if I want, I can put another pool of money aside for savings.” He said.
“But I don’t think I have to do that right now,” he giggled.
