Singapore's Marriage Decline Impacts Personal Finance

The declining number of marriages in Singapore, with 26,328 couples tying the knot in 2024 compared to 29,389 in 2022, signals a profound shift in societal priorities that reverberates through the nation’s economic and personal finance landscape. This trend, coupled with a historically low total fertility rate of 0.97 and increasing marital stability for recent unions, reflects changing attitudes toward family formation and financial planning among Singaporeans. As fewer individuals commit to marriage and parenthood, the implications for personal finance—particularly in budgeting, saving, and long-term planning—are significant, shaping how Singaporeans navigate their economic futures in a high-cost, rapidly evolving city-state.

The drop in marriages, particularly among those aged 25 to 34, underscores a cautious approach to life-altering commitments in Singapore’s high-pressure economic environment. With civil marriages involving brides aged 25 to 29 falling by 988 and grooms in the same age group by 758 in 2024, young Singaporeans appear to be prioritizing financial stability and career progression over early marriage. The cost of living in Singapore, one of the world’s most expensive cities, plays a pivotal role in this trend. Housing, a cornerstone of family formation, remains a significant financial burden, with HDB resale prices rising by approximately 4.9% in 2024, driven by demand for larger flats and limited supply. For young couples, the prospect of securing a home, often a prerequisite for marriage, requires substantial savings and long-term financial planning, which may delay or deter commitments.

While fewer marriages are being registered, those who do marry are experiencing greater marital stability, particularly among couples wed between 2006 and 2013. The proportion of couples divorcing before their 10th anniversary dropped from 17% for those married in 2005 to 14.4% for those wed in 2013, with Muslim marriages showing even more significant improvement, falling from 25% to 18.2%. This trend toward stronger marriages suggests that couples are entering unions with greater preparation and financial alignment, supported by government initiatives like marriage preparation courses and community-led marital programs. From a personal finance perspective, stable marriages contribute to shared financial goals, pooled resources, and reduced economic volatility, enabling couples to better manage household budgets and long-term planning.

Singapore’s persistently low total fertility rate of 0.97 in 2024, unchanged from 2023, coupled with a rise in childlessness among women aged 40 to 49 (from 11% in 2014 to 15% in 2024), has profound implications for personal finance, particularly retirement planning. Fewer children mean reduced familial support for aging parents, a significant concern in a society where filial piety has traditionally supplemented retirement income. The Central Provident Fund (CPF), Singapore’s mandatory social security system, remains a cornerstone of retirement planning, with contribution rates of up to 37% (employer and employee combined) for those aged 35 and below. However, with fewer children to rely on, Singaporeans must prioritize higher personal savings and investments to ensure financial independence in old age.

The interplay of declining marriages and low fertility rates underscores the importance of robust budgeting strategies for Singaporeans. With fewer marriages and smaller families, individuals and couples have greater flexibility to allocate resources toward savings and investments, but this requires disciplined financial habits. The 2024 National Council of Social Service study highlighted that nine in 10 parents reported moderate to high family resilience, driven by strong communication and problem-solving skills. These qualities are equally critical in financial planning, where clear communication about shared goals and proactive problem-solving can mitigate the risks of overspending or debt accumulation. For instance, adopting a 50/30/20 budgeting rule—50% for needs, 30% for wants, and 20% for savings and debt repayment—can help young Singaporeans build resilience against economic uncertainties.

Financial literacy is pivotal in addressing the challenges posed by these demographic shifts. Singapore’s government has invested heavily in financial education programs, such as MoneySense, which equips individuals with tools to manage budgets, reduce debt, and plan for retirement. However, awareness of these resources remains uneven, particularly among younger Singaporeans who may prioritize immediate career goals over long-term financial planning. The decline in marriages and fertility suggests a need for tailored financial education that addresses the unique needs of singles and smaller families, emphasizing strategies like emergency funds (recommended at 3–6 months of expenses) and diversified savings plans to mitigate risks associated with economic volatility or unexpected life events.

The trends of declining marriages, low fertility, and increasing marital stability point to a future where Singaporeans must adopt proactive and resilient financial strategies to thrive in an evolving economic landscape. As fewer individuals marry and have children, the reliance on personal savings and government-supported schemes like CPF will intensify. To prepare, Singaporeans should prioritize early and consistent savings, leveraging tools like CPF top-ups, which can yield up to 4% interest in the Special Account, and exploring low-risk investment options to counter inflation. Couples, benefiting from greater marital stability, should capitalize on shared financial planning to optimize household budgets and reduce debt, ensuring they can afford major milestones like homeownership or parenthood.