Singaporeans’ Top Financial Regrets in 2025

by | Feb 16, 2026 | Uncategorized | 0 comments

Executive Summary

In 2025, Singaporean households faced mounting financial pressures characterized by recession fears, declining disposable income, and persistent cost-of-living concerns. This case study examines the primary financial regrets experienced by Singaporeans, analyzes the economic outlook that shaped these challenges, and proposes evidence-based solutions to address them.

Background Context

Singapore’s economy demonstrated resilience in 2024, yet consumer sentiment reflected growing caution as concerns over recession, income stability, and inflation prompted many to cut back on discretionary expenses Yougov. Nearly half of Singaporeans believed the global economy would fall into recession within six months, while concerns about rising living costs dominated 83% of the population’s financial anxieties Yougov.

Despite median household income increasing by 3.9% nominally to S$11,297 in 2024, real growth was only 1.4% after inflation, while household spending surged significantly across transport, discretionary items, and food categories Financial Horse.

Top Financial Regrets in 2025

1. Inadequate Retirement Savings

The Singlife Financial Freedom Index revealed that inadequate retirement savings ranked among the biggest financial concerns, alongside inflation and medical expenses Hubbis. Only 33% of working adults felt confident about being financially comfortable in retirement, while 38% expressed a lack of confidence in achieving this goal Fund Selector Asia.

Key Findings:

  • Respondents believed they needed S$612,000 in cash to feel financially free, an 8% increase from S$566,000 in 2023, with most expecting to require S$2,856 per month for comfortable retirement living Hubbis
  • Over 40% of Singaporeans felt unlikely to achieve financial independence based on their current financial situation, citing insufficient income, unexpected health issues, and job insecurity Hubbis
  • 44% believed having children delayed their path to financial independence by an estimated 15 years Hubbis

2. Insufficient General Savings and Investment Capacity

Increasing savings and investments emerged as the most pressing financial need for nearly half of adults in Singapore, yet only 22% felt confident about their ability to invest their money Fund Selector Asia.

Impact on Households:

  • 46% of respondents reported a decrease in disposable income over the past six months, compared to just 17% who saw an increase Yougov
  • More than three-quarters of Singapore adults highlighted that rising inflation and cost of living caused them stress, followed by healthcare costs and retirement savings concerns Fund Selector Asia

3. Discretionary Overspending and Impulse Purchases

While specific Singapore data on impulse purchase regrets was limited, behavioral patterns indicated significant challenges with discretionary spending control, particularly in food and beverage, entertainment, and luxury categories.

Spending Pressure Points:

  • A quarter of Singaporeans planned to reduce spending on dining out, with 23% intending to cut back on indulgent foods and drinks, and 20% aiming to spend less on food delivery services Yougov
  • Buy Now, Pay Later schemes, which can lead to impulse spending and debt mismanagement, grew in popularity despite the absence of specific regulatory frameworks in Singapore Orionw
  • Median households received S$300-500 less in direct government transfers in Budget 2026 compared to 2025, placing additional pressure on discretionary spending Medium

4. Housing Affordability Concerns

Gen Z and millennials were especially worried about housing affordability, while Baby Boomers prioritized healthcare access and elderly care, highlighting generational differences in financial pressures Yougov.

Economic Outlook for 2025-2026

Macroeconomic Challenges

Growth was projected to slow to 1.7% in 2025 due to escalating global trade tensions and associated spikes in policy uncertainty, with risks firmly tilted to the downside International Monetary Fund. The unemployment rate increased from 1.9% in December 2024 to 2.1% in March 2025, showing signs of labor market weakening International Monetary Fund.

Inflation and Cost Pressures

MAS Core Inflation was forecast at 1.0% in 2025, reflecting emerging slack in the economy and projected declines in commodity prices from slower global growth International Monetary Fund. However, 47% of respondents expected living costs to definitely rise, with another 42% anticipating a possible rise Yougov.

Consumer Sentiment Shifts

Optimism among workers dropped to 60% in 2025 from 75% the previous year, with being financially comfortable in retirement becoming the most common financial objective Yougov.

Impact Assessment

Financial Well-being Consequences

  1. Wealth Inequality Concerns: The Financial Freedom Index score declined to 58 out of 100 in 2024 from 60 in 2023 Hubbis
  2. Generational Disparities: Younger generations prioritized building savings (Gen Z: 37% planned to increase savings), while older generations focused on healthcare spending
  3. Psychological Stress: Two in five Singaporeans did not seek advice or help with their financial planning, potentially exacerbating financial difficulties Fund Selector Asia

Spending Behavior Changes

Entertainment, bars, pubs, and luxury goods sectors expected reduced demand with 18-21% planning to trim spending, while 31% of Singaporeans planned to allocate more money to savings and 20% to investments Yougov.

Proposed Solutions

1. Retirement Planning Enhancement

Immediate Actions:

  • Maximize CPF contributions: Review and optimize voluntary CPF top-ups to benefit from government co-matching schemes
  • Employer CPF engagement: Ensure full understanding of employer CPF contribution schedules and retirement sum schemes
  • Eligible Singaporeans aged 50+ should take advantage of the one-time CPF top-up of up to S$1,500 for those with retirement savings below the Basic Retirement Sum introduced in Budget 2026 Medium

Long-term Strategies:

  • Establish Supplementary Retirement Scheme (SRS) accounts for tax relief benefits
  • Consider diversified investment portfolios through robo-advisors or low-cost index funds
  • Create a retirement income plan incorporating CPF LIFE, personal savings, and investment returns

2. Savings and Investment Capability Building

Financial Literacy Initiatives:

  • Participate in MoneySense programs and workshops provided by government agencies
  • Seek guidance from financial advisors (18% currently do so) or trusted financial services providers
  • Utilize digital budgeting tools to track expenses and identify saving opportunities

Practical Saving Mechanisms:

  • Implement automatic salary deductions into separate savings accounts immediately upon receiving monthly income
  • Among Gen Z, 37% planned to increase savings and 29% to boost investments, demonstrating strong focus on future financial security Yougov

3. Controlling Discretionary Spending

Behavioral Interventions:

  • Implement the “24-hour rule” before making non-essential purchases
  • Use cash instead of credit cards for discretionary spending to create psychological barriers
  • Remove saved payment information from online shopping platforms to add friction to impulse purchases
  • Create pre-planned budgets for social activities and gift-giving occasions

Strategic Spending Adjustments:

  • Reduce dining out frequency (26% planned this adjustment) and food delivery usage (20% planned cutbacks) Yougov
  • Substitute expensive social activities with lower-cost alternatives while maintaining relationship quality
  • Conduct quarterly subscription audits to eliminate unused services

4. Managing Budget Constraints

Government Support Utilization:

  • Families with household income below S$15,000 monthly should verify eligibility for enhanced preschool subsidies, which could provide S$500-800 monthly for households with two young children Medium
  • Access the Cost-of-Living special payment (S$400) and reduced CDC vouchers (S$500) provided in Budget 2026
  • Participate in enhanced ComLink+ Progress Packages offering S$500 quarterly for commitment to work with family coaches, with participating families potentially receiving around S$10,000 annually Medium

Household Efficiency Measures:

  • Implement energy-saving practices to reduce utility bills
  • Purchase groceries during markdown periods and take advantage of supermarket timing strategies
  • Utilize cashback credit cards strategically for essential spending categories

Monitoring and Adjustment Framework

Quarterly Financial Review Process

  1. Income Assessment: Track salary increases and adjust retirement contributions accordingly
  2. Expense Analysis: Review spending patterns across all categories and identify areas for optimization
  3. Savings Rate Evaluation: Calculate savings as percentage of income and compare against targets
  4. Investment Performance: Monitor portfolio returns and rebalance as necessary

Annual Financial Health Checkup

  • Review CPF balances and projection to retirement adequacy
  • Assess insurance coverage gaps (critical illness, life insurance)
  • Update financial goals based on life stage changes
  • Consult financial professionals for complex planning needs

Conclusion

Singaporeans’ financial regrets in 2025 reflected broader economic uncertainties characterized by slower growth projections, persistent inflation concerns, and declining disposable income. The primary regrets—inadequate retirement savings, insufficient general savings capacity, discretionary overspending, and housing affordability concerns—require multifaceted solutions combining behavioral changes, government support utilization, and systematic financial planning.

The outlook for 2026 remains cautious but manageable. While growth forecasts of 2.7% for 2025 reflect continued resilience, Singapore faces multiple challenges requiring careful policy calibration ASEAN+3 Macroeconomic Research Office. Success in addressing these financial regrets depends on individual commitment to implementing recommended solutions, maintaining financial discipline during uncertain times, and leveraging available resources for long-term financial security.

By adopting the proposed strategies—enhancing retirement planning, building savings capacity, controlling discretionary spending, and managing budget constraints—Singaporeans can transform 2025’s financial regrets into actionable improvements for 2026 and beyond. The key lies in recognizing that small behavioral adjustments, when consistently applied, compound into significant financial improvements over time.

References

  1. YouGov Survey (May-June 2025): 4,035 adults aged 18+ in Singapore
  2. Singlife Financial Freedom Index 2024: 3,000 respondents
  3. Fidelity International Global Sentiment Survey 2025: 1,000 working adults
  4. IMF Article IV Consultation Reports (2025)
  5. Singapore Budget 2026 Analysis