Life’s brighter under the sun
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Aligned with our corporate purpose of helping our clients achieve lifetime financial security and live healthier lives, we are pleased to share our inaugural Sun Life Asia Financial Resilience Index. Singapore is one of the eight key Asian markets covered by this Index, which measures household financial resilience across five pillars: literacy and confidence, behaviour, planning, tools, and resources. In October 2023, a survey of 8,000 consumers was conducted in Singapore, mainland China, Hong Kong SAR, India, Indonesia, Malaysia, Vietnam and the Philippines, with respondents drawn from different wealth levels, generations, and both rural and urban settings.
This report seeks to understand financial resilience in Asia. Through a survey, we investigated the factors and behaviours that contribute to financial resilience, including financial literacy, planning and budgeting, and access to advice and services. So we will be in a better position to create workable strategies and solutions for our clients*.
*Sun Life Assurance Company of Canada Singapore Branch is a Direct Insurer (Life), licensed and regulated by the Monetary Authority of Singapore (“MAS”), serving a defined market segment.
1. Optimism is high, but achieving financial goals requires a plan
A long-term approach to financial planning is critical for building resilience. However, our survey shows a gap when it comes to Singaporeans’ optimism about their finances versus their long-term preparedness.
2. Even wealthy Singaporeans have gaps in financial resilience
Good discipline in money management goes hand in hand with improved financial resilience at all wealth levels. Our survey shows that even among the wealthiest respondents, many people in Singapore lack preparedness and underestimate their expenditure levels or the benefits of building a long-term financial plan.
3. Millennials – Singapore’ most financially resilient generation
Millennials in Singapore appear to be in the sweet spot in life, with enough investable assets, less familial obligations than older groups, and just the right amount of adventure and knowledge to build toward their financial future.
4. Financial behaviour is often guided by emotion, while desire for education is strong
The survey found that perceptions of trust and emotion play a large part in financial behaviour, with 42% of respondents saying it influenced their financial decisions. Financial education was identified as a key desire by 39% of respondents, underlining the need for better access and professional help in financial management.
To understand how Singapore measures up in terms of financial resilience, we also need to compare it with other markets in the region. Overall, Singapore shows higher levels of resilience in financial planning, tools and resources than the other Asia markets surveyed. The Sun Life Asia Financial Resilience Index demonstrates that in Singapore, confidence and behaviour are key to achieving greater resilience. With a clearer understanding of financial resilience and the means to realise it, Singaporeans could secure a prosperous future for themselves and contribute to a reinvigorated national economy.