Sun Life Asia has released its second Financial Resilience Index, revealing that Gen Z is the least financially secure generation in Asia. The survey, which included over 6,000 respondents from Hong Kong, the Philippines, Indonesia, Malaysia, Singapore, and Vietnam, highlights the impact of inflation on financial security and planning. Whilst 69% of Baby Boomers feel financially secure, only 57% of Gen Z share this sentiment, indicating a significant generational gap in financial confidence.
The research underscores a shift towards short-term financial priorities, with 60% of respondents focusing on managing daily expenses, up from 54% last year. Retirement planning has notably dropped from second to sixth place in financial priorities. David Broom, Chief Client and Distribution Officer at Sun Life Asia, noted, “Gen Z has time on their side, but instead of confidence, we’re seeing hesitation and concern as they are coming of age in a world shaped by economic volatility and rising living costs.”
The survey also highlights that 92% of respondents feel the pressure of inflation, with 44% experiencing a significant impact on their ability to cover expenses. Furthermore, more than half of the respondents lack a financial plan extending beyond 12 months, and only 8% are planning more than 10 years ahead.
The findings reveal a stark divide between individuals with high financial resilience and those without. High resilience individuals are more likely to seek professional financial advice and focus on long-term goals, whereas low resilience individuals rely more on informal networks and struggle with short-term financial management. The full report is available on Sun Life’s website.
“`
