- Regardless of income levels, 90% of people in Singapore feel the pressure of inflation, and 42% face a significant impact on their ability to cover expenses.
- More than half (57%) of respondents still lack a financial plan that extends beyond 12 months, and only 8% are planning more than 10 years ahead - this figure is even lower for high-income respondents at 5%.
- Gen Z in Singapore are the least financially secure – 76% of Baby Boomers in Singapore feel financially secure compared to just 61% of Gen Z respondents.
- Close to a quarter of Gen Z respondents (22%) do not seek help when making financial decisions.
Singapore (14 July 2025) – Sun Life Singapore today unveiled its second Sun Life Asia Financial Resilience Index: Balancing today’s needs and tomorrow’s goals, offering a detailed look into how individuals in Singapore are managing their finances while navigating today’s volatile financial landscape. The findings reveal that while overall perceptions of financial security have slightly improved, the reality is more sobering – inflation has forced a shift to short-term thinking over long-term wealth.
The research surveyed over 6,000 respondents across Asia, including 1,000 in Singapore, highlights trends in financial planning, literacy, risk appetite, and the role of professional advice in building long-term resilience.
Short-term focus over long-term wealth
After several years of high inflation, many people in Singapore are struggling to manage their daily and long-term expenses. According to our survey, 90% of Singapore respondents are feeling the effects of persistent price increases, and 42% note a significant impact on their ability to cover monthly expenses.
Additionally, compared to a similar survey we conducted last year, the number of respondents who indicated that they have of life insurance and investment products decreased by 19% and 18% respectively.
As rising living costs continue to squeeze household budgets, more people are focused on meeting their immediate needs rather than planning for their future goals. Managing day-to-day expenses is the top financial priority for 60% of respondents, up from 43% last year, while retirement planning has dropped from second to sixth place this year – a clear sign that budgeting for the present has taken precedence over long-term goals.
In an uncertain economic environment, building emergency savings has also climbed the ranks and is now the second most important goal (41%).
Achieving financial security is further challenged by a lack of long-term planning. Despite slight year-on-year improvements, long-term financial preparedness remains dangerously low. More than half of respondents (57%) still lack a plan that extends beyond 12 months. Only 8% are planning further than 10 years ahead, revealing a widespread gap in financial foresight and resilience.
Inflation pressures also a concern for high-income earners
The impact of inflation is broad-based and is felt across respondents of all income levels. A substantive proportion of the high-income respondents reported that they are feeling the effects of persistent price increases (89%), and 43% note a significant impact on their ability to cover monthly expenses. The proportion of high-income respondents who are planning further than 10 years ahead is even lower at 5%.
These findings illustrate how inflation pressures are very real no matter the income level, highlighting a critical need for greater financial resilience across the board.
Christopher Albrecht, Chief Executive Officer, Sun Life Singapore said, "The study findings reveal a gap in financial resilience for Singapore residents, especially amid rising cost-of-living pressures. Regardless of income level, it is increasingly clear that we need to move from getting caught in a cycle of short-term survival, to building long-term financial stability. Insurance has long been recognised as a strong tool for wealth preservation and transfer to the next generation. With the right insurance plan, one can not only guarantee lifetime coverage, but also gain protection against market headwinds, thus strengthening overall financial resilience.
“At Sun Life, we are committed to helping people better manage their finances and make savings for the future so they can achieve their life goals. At the core of this is greater financial literacy, giving people greater control over their financial resilience and wealth planning journeys."
Gen Z faces the steepest climb to financial security
Gen Z has emerged as the least financially secure and resilient generation surveyed. Gen Z lags other generations in both confidence and preparedness. Only 61% of Gen Z respondents feel financially secure, well below 76% of Baby Boomers, the most financially secure generation, and 72% of Millennials. While time is on their side, their investment approach suggests hesitation rather than ambition, with 63% describing themselves as conservative investors, pointing to a lack of awareness around how to balance risk and long-term reward.
Gen Z is also the most isolated in their financial decision-making compared to other generations. Close to a quarter (22%) do not seek any advice at all, despite being the generation most in need of structured guidance and support. Notably, Gen Z are also most likely to consult AI tools (21%) for financial advice than other age groups (Millennials 18%; Gen X 10%; Baby Boomers 13%).
Christopher Albrecht, Chief Executive Officer, Sun Life Singapore, said, “Gen Z has time on their side, but instead of confidence, we are seeing hesitation and concern as they are coming of age in a world shaped by economic volatility and rising living costs. Strengthening their financial literacy and connecting them with a variety of trusted sources of advice will give them the tools to build a more stable future.”
Bridging the resilience divide
The survey findings also reveal a stark difference between those with high financial resilience and those without.
High resilience individuals — categorised in this survey as those having high ability to withstand financial shocks and meet their financial goals – also have high financial confidence. 84% are sure they can meet short-term obligations and 77% believe they will achieve long-term savings goals. Nearly half (49%) say they could financially support themselves for more than six months in the event of a crisis. This group is also more likely to seek professional advice, with 40% working with financial advisors. Many are taking proactive steps to improve their financial situation – 47% are reading up on personal finance and 45% are investing for stronger returns.
In contrast, only 26% of low resilience individuals – categorised in this survey as having limited ability to withstand financial shocks and limited confidence to meet financial goals – feel they can manage short-term finances, and just 12% expect to meet long-term financial goals. Alarmingly, 87% say they wouldn’t be able to support themselves for more than six months in the face of job loss or serious illness. Just 27% consult professional advisors, relying more often on informal networks or social media.
View the Singapore findings of Sun Life Asia Financial Resilience Index here
About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the U.S., the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2025, Sun Life had total assets under management of $1.55 trillion. For more information, please visit www.sunlife.com. For more information about Sun Life Singapore, pls visit www.sunlife.com.sg.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
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