Sun Life Reports Highlight Lack of Financial Resilience Among Singapore's Wealthiest
Sun Life has conducted a study across various Asian countries, including Singapore, to delve into the financial preparedness, planning habits, and financial goals of the citizens.
This research, which surveyed 1,000 Singaporean households, reveals that even the most affluent individuals exhibit significant gaps in their financial preparedness, often underestimating expenses and lacking in long-term financial planning.
The study found that high earners in Singapore are nearly as prone to exceeding their monthly budgets as those with lower incomes (19% compared to 22%). Interestingly, individuals with lower incomes were more adept (60%) at managing short-term financial commitments while also saving for future goals, compared to their wealthier counterparts (52%).
These insights stem from Sun Life's first “Asia Financial Resilience Index,” which assesses the financial habits and attitudes of people across Asia, along with the challenges they encounter in securing their financial future.
While the survey aligns with Sun Life's interest in promoting financial planning and solutions, it also highlights the critical issue of financial resilience, a concern for wealth management professionals. The index revealed that Millennials in Singapore exhibit the highest levels of financial resilience. Despite a general sense of confidence and optimism across generations, a considerable number of individuals, including those with high net worth, lack a solid financial plan. The survey also noted that Millennials are more financially literate than Baby Boomers (52% vs 46%) and are more likely to have a financial plan for five years or more (27%) compared to older generations (21%).
The Sun Life Asia Financial Resilience Index, which involved 8,000 participants from eight markets, including Singapore, mainland China, Hong Kong SAR, India, Indonesia, Malaysia, the Philippines, and Vietnam, found that 70% of Singaporeans are confident in achieving their long-term financial objectives (compared to the Asian average of 69%). However, only 44% have a financial plan extending beyond a year (compared to the Asian average of 40%).
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