The financial services group has conducted research among Singapore citizens – and those in other Asian nations – to explore their financial preparadness, how they plan, and what they expect to achieve financially.

The survey of 1,000 households in Singapore by Sun Life finds that even the wealthiest respondents had gaps relating to preparedness, underestimating expenditure and lack of long-term financial planning. 

High-income respondents are almost as likely to exceed their monthly budgets as lower-income respondents (19 per cent vs 22 per cent). The survey also found that lower-income respondents score better (60 per cent) than those in the high-income category (52 per cent) in being able to cover short-term financial obligations while saving for long-term goals.

The findings came from the international firm’s inaugural “Asia Financial Resilience Index,” which examines the financial behaviours and beliefs of individuals across the region and the barriers they face in building long-term financial security.

While the results of the survey understandably play to Sun Life’s desire to advocate for financial planning and related solutions, they also underscore how financial resilience is an important topic for wealth managers to grapple with. 

The Index shows that Singaporean Millennials have the highest levels of financial resilience . However, while confidence and optimism are high across all generations, many people including wealthy individuals still lack a plan of action. They also scored higher in financial literacy compared with their Baby Boomer counterparts (52 per cent vs 46 per cent).

Figures showed that 27 per cent of Millennials are likely to have a five-year+ financial plan in place, while only 21 per cent of older citizens have one. 

The Sun Life Asia Financial Resilience Index is based on a survey of 8,000 people in eight markets: Singapore, mainland China, Hong Kong SAR, India, Indonesia, Malaysia, the Philippines, and Vietnam.

In Singapore, 70 per cent of respondents are confident that they will meet their long-term financial goals (compared with a 69 per cent Asia average) yet only 44 per cent have a financial plan beyond one year ahead (compared with a 40 per cent Asia average).