Is the Middle Class Disappearing? Reflections as an Early 40s Adult in Singapore

Recently, I have been struck by two things I watched that felt uncomfortably close to home.  One was a video by The Joyful Investors, where Chief Corporate Officer from HRNetGroup shared that hiring demand today is strong at two ends of the spectrum: ground staff earning below SGD 5K, and C-suite executives above SGD 15K.  However the mid-level employees, those in the SGD 5K to 15K range, are increasingly being squeezed out.  The other was a video by CNA Insider, which highlighted that workers in their late 30s and early 40s are now more prone to retrenchment compared to other age groups.

Hearing both points together made me pause.  I am in my early 40s now, which means I fall right into that shrinking middle.  Is the middle class disappearing and is the middle age groups facing some form of employability crisis?  Even though I am self-employed, does that also mean that inevitably with time, my job (as a tutor) will also be replaced by AI?  Is that happens, where does that leave me?

The Hollowing Out of the Middle

What is happening currently feels like the formation of a “M-shaped society” that was talked about, a society where the middle class gets hollowed out, leaving mainly two groups: lower-wage earners and high-flyers at the top.  For years, the narrative in Singapore was clear.  Study hard, get a stable job, work your way up, and one will enjoy middle-class security, and this is why tuition industry was booming.  However the reality today seems quite different.  If one is not "low-cost" and energetic like a fresh graduate, or highly strategic and resourceful like a C-suite (usually above 45 or 50s), one may risk becoming less employable with age, and slowly becoming dispensable at the "sandwich" age where income is of utmost importance with elder parents and possibly young children to care for, and that is the uncomfortable truth for many.

Personal Fears and Quiet Realities

Honestly, sometimes I struggle being a “middle-class”, and in fact, I think I actually belong to the "lower-class" in Singapore.  As a self employed individual, my current income is drifting below the median income.  Sometimes I wonder if I can even keep up in Singapore?  I understand that many will comment that I actually have the option to get a real job, be employed and work as long as possible.  However for me, I think I am away from the corporate world for a little too long, and being in my 40s, it is hard to get a job too.  In addition, I am not a business man with guts and business acumen to scale up my private tutoring business (in fact I did try before, but failed).  Therefore, from my active income portion, I am still exchanging time for income, giving 1 to 1 private tutoring as much as I can, as long as I am needed.  

However, I am thankful to my younger self that have made some preparations, which helped the current self alleviate some of my fears, and not putting blind faith solely in active income currently.  I understand job security is no longer as "cast-in-stone" as before, regardless of the sector one is in due to the widespread use of Artificial Intelligence (AI).  As such, I have been building my own safety net (diversified dividend income stream) to ensure that even if the middle class continues to shrink, even when the day comes that my job is totally replaced by AI and my services are no longer in demand, I will not be dragged down with it.

Barista FIRE: My Middle Path

For me, the concept of Barista FIRE has become increasingly important.  Instead of chasing full financial independence at an extreme level, my aim is simpler: build enough passive income from my dividend portfolio to cover a big portion of my expenses, then top it up with light part-time work, which can be any lower paying job that I am interested in doing, or before tutoring is fully replaced by AI, continuing with what I have been doing all these while with lesser students.

That, to me, is dignity and resilience.

Dividends: My Quiet Ally

My dividend portfolio currently generates about SGD 30K a year (as of 2025 projection).  It is not yet enough to cover a full Singapore lifestyle without worries, but it is a powerful cushion.  What I value most is that dividends do not care about my age or job title.  They do not judge whether I am “too old” or “too expensive”, or too backward in technology to embrace AI in my work.  Dividends just flow in steadily, quarter after quarter, like a loyal ally.  In addition, as I know I am someone without business acumen and cannot succeed in scaling up my business, why not let all the successful businessmen and businesswomen work for me to generate profits and pay me dividends?

At this juncture, whenever I see a dividend payout, I am reminded that I am not completely dependent on my active job (or employment for employees).  I believe I have built something that gives me a measure of freedom and that is deeply comforting on a personal level.

Geo-Arbitrage: Stretching My Middle Class Identity

The other part of my plan is geo-arbitrage: eventually retiring in Johor.  In Singapore, SGD 30K a year does not get me far.  However in Johor, that same amount translates into a much more comfortable lifestyle solely based on exchange rate, thanks to the strength of the Singapore Dollar against the Malaysia Ringgit.  This move allows me to enjoy a slightly better quality living while reducing my expenses slightly.

This strategy gives me peace of mind.  Even if I stop fitting neatly into Singapore’s “middle class”, I can redefine my own version of it just across the Causeway.

Closing Reflections

I do not deny that sometimes, it hurts that people in my age group and income bracket are becoming less valued in Singapore’s workforce.  It feels like the middle class I once thought I belonged to is slowly eroding, leaving me uncertain about where I stand.  But instead of letting that fear paralyze me, I am glad that I have prepared for this day years ahead.  Through Barista FIRE, my dividend portfolio, and eventual geo-arbitraging, I am building a buffer against a future where mid-level workers may no longer be secure.

The middle class may be shrinking.  But with intentional planning, I believe I can still hold on to stability and dignity on my own terms.  Barista FIRE, here I come...!