S'pore residents anticipate their cost of living to increase, plan to cut non-essential spending

A majority of residents are not hopeful about their future financial situation and expect it to remain the same or get worse in the next 12 months

With inflation hitting a thirteen-year-high in Singapore last month, it comes as no surprise that residents have begun to feel the pinch. Latest data from YouGov suggests that majority also expect the cost of living to rise over the next 12 months (83%), with more likely to say this will be a substantial increase (51%) rather than a minor one (32%).

Older adults appear to anticipate a greater impact, with those aged 45-54 (60%) and above 55 (57%) most likely to say that the cost of living will increase substantially. On the other hand, those aged 18-24 (45%) and 25-34 (37%) were most likely to say cost would increase slightly.

When asked about measures they would take to counter rising costs, almost seven in ten residents said they would cut back on non-essential expenses like dining out (68%). Other measures residents are most likely to undertake include changing food shopping habits (53%), travelling less (39%), and cutting domestic energy use (36%).

One in three said they would either tap into their existing savings (31%) or save less (30%), while a further one in seven would switch jobs (15%) or work overtime (13%).

Amid rising costs, Singapore adults are not hopeful about the future, with three in eight expecting their personal finances to either get worse (35%) or remain the same (35%) over the next 12 months. Fewer are optimistic, with just two in ten expecting their financial situations to improve (23%).

Notably, younger adults are more confident in their future financial situations, with those aged 18-24 (42%) and 25-34 (33%) most likely to say that their financial situations will improve in the next 12 months. On the other hand, those above the age of 55 are most likely to say their financial situations will worsen (42%).