Survey Reveals Financial Struggles Amid Increasing Costs and Irregular Income for Gig Workers
A recent survey conducted by Singlife, PwC, and the Singapore FinTech Association (SFA) has highlighted significant financial concerns among gig workers. Only 1 in 10 freelance workers feel confident in managing the rising cost of living, with 62% citing increasing daily expenses as their top financial worry.
The survey, which polled 500 gig workers in July 2023, including delivery riders, taxi drivers, and freelancers in various sectors, reveals that most workers struggle to meet monthly savings goals. Despite working over 40 hours a week, 80% of respondents earn below S$4,000 monthly, and 81% rely solely on gig work for their income. Even those working over 60 hours a week often fall short of their savings targets.
Furthermore, only 1 in 10 workers have taken steps towards retirement planning. On average, gig workers rated their financial freedom as 50 out of 100, significantly lower than the broader population’s score.
The survey also draws attention to the irregular income faced by platform workers, which exacerbates financial pressures. While the Singapore government has introduced measures to protect these workers, including Workplace Injury Compensation Act (Wica) and CPF contributions, platform operators expressed concerns about implementing these protections effectively. They highlighted challenges in managing claims, ensuring legitimacy, and the potential negative effects of mandatory CPF contributions on the ecosystem.
The findings underscore the need for continued support and reforms to ensure the financial stability of platform workers, who remain vulnerable amid rising costs and unstable earnings.
