The number of Singaporeans who indicated that they have of life insurance and investment products has decreased by 19% and 18%, respectively, compared to that a year ago.
This is one of the findings from Sun Life Asia Financial Resilience Index: Balancing today’s needs and tomorrow’s goals, which took a detailed look into how individuals in Singapore are managing their finances while navigating today’s volatile financial landscape.
The findings reveal that while overall perceptions of financial security have slightly improved, inflation has forced a shift to short-term thinking over long-term wealth.
After several years of high inflation, many people in Singapore are struggling to manage their daily and long-term expenses. According to the survey, 90% of Singapore respondents are feeling the effects of persistent price increases, and 42% note a significant impact on their ability to cover monthly expenses.
As rising living costs continue to squeeze household budgets, more people are focused on meeting their immediate needs rather than planning for their future goals. Managing day-to-day expenses is the top financial priority for 60% of respondents, up from 43% last year, while retirement planning has dropped from second to sixth place this year – a clear sign that budgeting for the present has taken precedence over long-term goals. In an uncertain economic environment, building emergency savings has also climbed the ranks and is now the second most important goal (41%).
Achieving financial security is further challenged by a lack of long-term planning. Despite slight year-on-year improvements, long-term financial preparedness remains dangerously low. More than half of respondents (57%) still lack a plan that extends beyond 12 months. Only 8% are planning further than 10 years ahead, revealing a widespread gap in financial foresight and resilience.
The impact of inflation is broad-based and is felt across respondents of all income levels. A substantive proportion of the high-income respondents reported that they are feeling the effects of persistent price increases (89%), and 43% note a significant impact on their ability to cover monthly expenses. The proportion of high-income respondents who are planning further than 10 years ahead is even lower at 5%.