Sun Life Asia recently released the "Sun Life Asia Financial Resilience Index", a study that assesses the financial actions and perspectives of individuals across the region, as well as the challenges they face in achieving long-term financial stability.
The findings show that while many people have high levels of confidence and optimism about their finances, a significant number still lack concrete action plans. In addition, the research highlights that Millennials are the most financially resilient group.
Through a double-blind survey of 8,000 individuals across eight Asian markets (China, Hong Kong SAR, India, Indonesia, Malaysia, Singapore, the Philippines, and Vietnam), the Index found that financial confidence across Asia tends to outweigh a concrete willingness to achieve long-term financial goals.
In Singapore, 70% of respondents believe they can achieve their long-term financial goals, higher than the Asia-wide average of 69%. However, only 44% have financial plans that extend beyond one year, compared to the Asia-wide average of 40%.
Respondents ranked retirement savings and financial planning as their second highest financial priority after managing daily expenses. However, only 16% currently have structured retirement plans or pension funds to help them achieve their financial goals.
Meanwhile, the Index also reveals significant confidence among Millennials about their financial future. 75% of them express optimism, which is higher than other age groups. This optimism is supported by high levels of self-confidence, with 70% of millennials fully confident in their ability to achieve their long-term financial goals, outpacing older generations.
Despite their optimism and confidence, Millennials face similar financial planning challenges as previous generations. Only 42% of them have formulated financial plans that extend beyond the next year, indicating a potential gap between their financial optimism and actual readiness.
David Broom, Chief Client and Distribution Officer for Sun Life in Asia, observes the unique role that millennials play in the financial context. He notes that this situation provides insights into how households in Asia approach financial goals and future protection.
Broom also highlights that many people feel more optimistic about their finances in 2024, and he believes that this optimism deserves a plan to make it a reality. He also stresses that financial plans provide simple and clear steps to achieve wealth and health goals.
The Sun Life Asia Financial Resilience Index study was conducted in October 2023 to compare levels of financial resilience by analyzing five key aspects: beliefs, behaviors, planning, tools and available resources.
