Sun Life Asia has released its second Financial Resilience Index, revealing that Generation Z is the least financially secure and resilient group compared to other generations. The survey, which involved over 6,000 respondents from Hong Kong, the Philippines, Indonesia, Malaysia, Singapore, and Vietnam, indicates that only 57% of Gen Z feels financially secure. This contrasts with 69% of Baby Boomers who report feeling financially stable.
The study highlights that Gen Z is more conservative in their investment approach and less likely to seek professional financial advice. "Gen Z has time on their side," said David Broom, Chief Client and Distribution Officer at Sun Life Asia. "Strengthening their financial literacy and connecting them with a variety of trusted sources of advice will give them the tools to build a more stable future."
Inflation continues to impact financial security across all age groups. According to the survey, 92% of people feel the pressure of inflation while 44% face significant challenges in covering expenses. Many are focusing on immediate needs rather than long-term planning; only 8% have plans extending beyond ten years.
There is also a divide between individuals with high financial resilience and those without. High resilience individuals prioritize building emergency savings and education while low resilience individuals focus on paying off debt or creating emergency funds.
David Broom commented on these findings: "The findings from this research clearly underscore a growing divide between those who are actively building financial stability and those who are caught in a cycle of short-term survival."
Sun Life provides various asset management services globally including wealth management, insurance, and health solutions.