Sun Life Asia recently released the Sun Life Asia Financial Resilience Index, a study that assesses the financial activities and prospects of people across the region, in addition to the challenges they face in achieving long-term financial stability.
The results show that while many individuals have high levels of confidence and optimism about their funds, a major number still should not have concrete plans of motion. The research also highlights that Millennials are essentially the most financially resilient group.
In a double-blind study of 8,000 people in eight Asian markets (China, Hong Kong SAR, India, Indonesia, Malaysia, Singapore, the Philippines and Vietnam), the index found that financial confidence in Asia tends to trump the particular desire to attain long-term financial goals.
In Singapore, 70% of respondents imagine they will achieve their long-term financial goals, higher than the Asia-wide average of 69%. However, only 44% have financial plans beyond one 12 months, compared with the Asia average of 40%.
Respondents rated retirement savings and financial planning as their second-highest financial priority after managing day-to-day expenses. However, only 16% currently have structured retirement plans or pension funds to assist them achieve their financial goals.
Meanwhile, the index also reveals significant confidence amongst millennials about their financial future, with 75% of them expressing optimism, which is higher than in other age groups. This optimism is supported by high levels of self-confidence, with 70% of millennials fully confident of their ability to attain their long-term financial goals, outpacing older generations.
Despite their optimism and confidence, millennials face similar financial planning challenges as previous generations. Only 42% have formulated financial plans beyond the following 12 months, indicating a possible gap between their financial optimism and actual preparedness.
David Broom, Sun Life’s Chief Client and Distribution Officer in Asia, notes the unique role that millennials play within the financial landscape. He notes that this case provides insight into how Asian households are approaching financial goals and protecting their futures.
Broom also points out that many persons are feeling more optimistic about their funds in 2024, and he believes that this optimism deserves a plan to make it a reality. He also emphasizes that financial plans provide easy, clear steps to achieving wealth and health goals.
The Sun Life Asia Financial Resilience Index was conducted in October 2023 to match levels of economic resilience by analysing five key dimensions: beliefs, behaviours, planning, tools and available resources.
