In one of the world's most expensive cities, more workers are living paycheck to paycheck
Rising costs and a growing prioritization for experiences and self-care are taking precedence over long-term financial planning, experts observed.
"At the end of every month, when my salary is in, I use it to pay my credit bills, parents' allowance, insurances and investments," said 32-year-old Singaporean Jovan Yeo, who works for a digital bank services firm.
"After all these, my salary is back to zero again, with nothing much to save," he said, adding that other expenses go into travel, dining out and fitness class memberships.
60% of workers in Singapore were living paycheck to paycheck in 2024 — notably higher than regional peers including China, South Korea, Japan and Indonesia, and above the Asia-Pacific average of 48%, a recent 2025 research from the payroll company ADP found.
While this was the first time the research by ADP, which surveyed nearly 38,000 people in 34 markets, had this specific paycheck metric, other reports paint a similar picture. A survey conducted by global research advisory firm Forrester Research found that back in 2021, the percentage of Singaporean consumers who lived paycheck to paycheck was lower at 53%.
Furthermore, while young Singaporeans in their 20s are more likely than other age groups to spend beyond their means in order to keep up with their peers, fewer Singaporeans between their 20s and 50s have started making financial plans for their retirement as compared to 2023, Oversea-Chinese Banking Corp's most recent financial wellness report published in late 2024 showed.
Yeo acknowledged the importance of saving, but told CNBC that it is an increasingly herculean feat to save with the country's rising costs of living.
"I can save if I don't go out, but I want to have a life and experience life too!"
Maybank Research's economist Brian Lee noted that certain macroeconomic factors have made saving in Singapore objectively harder. Even though Singapore's inflation has recently cooled to a four-year low, the country still has one of the highest costs of living, according to multiple surveys, due to structural factors like expensive housing and import costs.
According to Numbeo's cost of living indices, which pools crowdsourced data across groceries, utilities and transportation fares, among other indicators, Singapore's Cost of Living Index came in fifth globally at 85.3 as of mid-2025, but first in the region. The reading also marked an 11% jump year over year.A survey published in April by data analytics firm YouGov found that the cost of living was the top concern of 72% of the 1,845 Singaporeans polled, followed by healthcare and the challenges of an aging population.
Living expenses have risen faster than incomes during the post-pandemic bout of elevated consumer price inflation," Lee said. This means that the typical worker's purchasing power has shrunk slightly on average each year since the pandemic, instead of growing as it did in the past.
Real median employment income fell by 0.4% per annum between 2019 and 2024, reversing the average annual growth of 2.2% seen from 2014 to 2019, according to data from Maybank.
While real wage growth recovered in 2024, it is expected to moderate in 2025 as a result of tariff-related impact, in particular for trade-reliant sectors like wholesale trade and manufacturing, said the country's Ministry of Manpower.
Housing costs have further compounded the pressure, Lee added. Resale prices of Singapore's public apartments — which house nearly 80% of residents — rose 9.6% in 2024, quicker than the 4.9% in 2023, data from the country's Housing Development Board showed.
"Singapore has limited land, space and natural resources. This translates into high property prices, high car prices, and a reliance on imported food," the Maybank economist said. "Due to our reliance on imports, our domestic inflation is very much correlated to global inflation, which has been high due to pandemic disruptions associated with increased goods demand, labor shortages and supply chain snags," he added.
Other experts CNBC spoke to observed that the issue goes beyond the higher cost of living — it reflects deeper social and cultural shifts, such as not feeling as much need to save, or spending beyond their means.
PhillipCapital's wealth manager, Joshua Lim, observed that spending has become increasingly aspirational. "Luxury is a big thing here — Mercedes is one of the top-selling brands. People are pushing for a certain image, a certain lifestyle."
Cars are significantly more expensive in Singapore because of the Certificate of Entitlement system, which requires buyers to bid for a limited permit just to own a vehicle. The COE alone, which was introduced to manage road congestion, can cost over 100,000 Singapore dollars, sometimes exceeding the price of the car itself.
"For 100% spenders, or those who don't really like to save, it's also because they're spending what they haven't even received yet," Lim said, noting that buy now, pay later plans are also making it easier for Singaporeans to commit to future spending before they have the cash. According to Singapore's central bank, BNPL transactions reached around SG$440 million in 2021, a nearly fourfold increase from 2020. Research firm IDC expects BNPL payments in e-commerce transactions in Singapore to increase from 4% in 2023 to 6% by 2028.
This shift, Lim argues, is part of a broader "debt society," where instant gratification and lifestyle signaling trump long-term financial prudence, as compared to earlier-generation Singaporeans.
Lim also mentioned that most of his clients who live paycheck to paycheck are largely the middle-income earners, which make up 60% to 70% of his clientele seeking consultations on how to save more. High-income earners make up 20% of his client base, while those in the low-income bracket make up the least at 10%.
Consumerism is more deeply entrenched than ever, which can make saving harder, said He Ruiming, co-founder of The Woke Salaryman, a Singapore-based blog focusing on personal finance education.
"This is the generation who grew up on a lot more marketing, so the urge to buy is a lot more, and they compare themselves to a lot more people," said He, who is currently a council member in Singapore's National Youth Council, a government body focused on youth development.
34-year-old Singaporean Joyce Ang echoed that she does not feel the same urgency as her parents did when it came to saving.
"I feel safe to spend, because I don't have a partner yet, and I still live with my parents, so I don't have a house to worry about. I'm not in need of money immediately," she added.
Compared to her parents' generation, she believes the priorities of the younger generation have changed. "In my parents' time, they were saving to have children. But nowadays not every one of us wants kids… so we don't have to actually scrimp and save so much," said Ang, who has a take-home pay of around SG$3,800 ($2,949) per month.
Singaporeans' take-home pay is lower than their full salary because of mandatory Central Provident Fund (CPF) contributions. Every month, a portion of their salary — up to 20% for employees under 55 — is automatically deducted for retirement, housing, and healthcare savings.
While Singaporeans can only withdraw $5,000 or more from CPF savings once they hit 55, they can tap on these savings to pay for housing and some medical costs at any age.
"It's not that difficult to save. I set aside some of my allowance for my parents so if I wanted to, I can just set aside another pool of money for savings," said Ang.
"But I don't think I need to do that at this point in time," she chuckled.
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