Sun Life Singapore has unveiled findings from its Financial Resilience Index, highlighting that rising living costs are eroding financial security across all income levels in Singapore. The report shows a significant decline in the proportion of highly resilient households, dropping from 34% in 2025 to 21% this year, with only 11% of respondents feeling very financially secure.
The survey indicates that inflation is affecting 81% of Singaporeans, with 76% of High-Net-Worth (HNW) respondents—those earning SGD250,000 or more annually—struggling to cover monthly expenses. Despite their financial confidence, 59% of HNW individuals anticipate making lifestyle adjustments if costs continue to rise. Christopher Albrecht, CEO of Sun Life Singapore, noted, “Rising costs are placing real pressure on households in Singapore, including those with higher incomes.”
Everyday expenses, such as groceries and utilities, are cited as the primary financial burdens, affecting 95% and 94% of respondents, respectively. This financial strain has led 24% of households to draw down savings and 14% to pause retirement contributions.
Financial literacy remains a crucial factor in resilience, with those possessing higher literacy levels feeling more confident about their financial future. The use of Generative AI (GenAI) for financial advice is increasing, with 53% of respondents using it at least sometimes, rising to 74% among HNW individuals.
The report underscores the importance of professional financial advice, particularly for complex areas like wealth preservation and legacy planning. As Albrecht emphasised, “Professional advice remains important in helping people make informed decisions that are aligned with their goals and family responsibilities.”
