Stagnant wages deepen money stress nationwide

Workers face rising financial insecurity as living costs surge and resilience declines.

Singapore’s workforce is experiencing a growing financial strain as rising costs outpace wage growth, leaving workers across income levels increasingly vulnerable. According to Deel, only 13% of Singapore employees believe their pay is keeping up with inflation, a gap that is reshaping spending habits, career choices, and expectations of employer support.

Karen Ng, Country Leader, Asia at Deel, said the mismatch between wages and living costs has created widespread insecurity. “Only 13% of Singapore workers feel their wages are keeping up with the cost of living. This creates, of course, a fundamental sense of financial insecurity, regardless of industry or salary level.”

She noted that wage freezes are becoming more common. “More than 60% of businesses are looking to freeze wages due to the impact of global tariffs,” she said, adding that 50% of workers report “just getting by or struggling,” while 42% cannot sustain three months without income. As a result, “Workers are cutting back on discretionary spending” and many have taken on part time or freelance jobs.

Paul Gordon, Head of Financial Wellbeing at Aon, said the trend reflects global pressures as well. “There's a lot of financial stress globally, and particularly around workers.” He added that financial resilience is weakening. “They're also finding they're not building up that emergency fund like generations in the past,” contributing to anxiety about sudden income shocks. With inflation, rising housing costs, and a “fairly flat pay market,” stress among workers is intensifying.

Millennials appear to be the most affected. Ng said many face “sandwich pressures,” supporting both young children and aging parents. “They are themselves parents, and of course, have aging parents to support,” leaving them thinly stretched. Gordon added that people aged 29 to 44 are in a particularly demanding stage of life, accumulating assets while managing high housing costs. Millennials “have a fear that they may not have the income in the future that they've got now because of the change in the job scene.”

Both experts agree that employers must play a bigger role in financial wellbeing. Gordon said workers want support with elder care, childcare, retirement savings, and crisis benefits such as “debt management and emergency loans.” Ng added that “workers want flexibility,” citing strong interest in earned wage access and employer-led financial planning support.

Looking ahead, Gordon noted that long-term solutions start with education. “We need to be teaching kids about money earlier,” he said, stressing the importance of preparing future workers for financial realities.