Big spenders: Singapore workers guilty of meager savings

60% save less than one-fifth of their salary.

According to a recent JobsCentral survey, 55.5 per cent of Singapore workers save less than one-fifth of their income each month, while another 5.2 per cent do not save at all.

In terms of spending, the majority of the workers spend the bulk of their salary on necessities like food, transport and allowances for parents or children. 23.6 per cent confessed they would spend the bulk of their salary on entertainment, while 15.1 per cent said they would spend the majority of their salary on travel.

However, there is an observable improvement in thriftiness habits. One-quarter of those surveyed (25.5%) said they would save 21 per cent to 40 per cent of their salary, up from 19.7 percent in 2011.

These are some of the findings from an online survey carried out by JobsCentral last year. A total of 3,299 respondents from all levels of occupation and industries took part in this survey from September to October in 2012. For this survey, 20 per cent was set as the benchmark of good savings habits.

“While it is encouraging to see that most people do have some savings from their monthly income, it looks like many have low saving rates. For those relying on their CPF for retirement, they may find that it is often insufficient and needs supplement from personal savings or income from investments,” says Michelle Lim, Chief Operating Officer of JobsCentral Group.