Sun Life Asia has launched its inaugural “Sun Life Asia Financial Resilience Index,” which delves into the financial behaviors and beliefs of individuals across eight markets in the region, along with the obstacles they encounter in establishing long-term financial security.
The survey found that millennials in the Philippines are the most confident in meeting long-term financial goals. There is also high confidence across all generations, but 59% of those surveyed don’t have financial plans beyond one year. Only 21% of respondents also seek professional help or advice in managing their finances.
Despite Filipino millennials exhibiting the highest levels of financial resilience, many still lack a concrete plan of action, a crucial component of financial stability.
Filipino millennials are the most financially resilient generation
Filipino millennials emerged as the most financially resilient generation, showcasing greater optimism about their financial futures compared to Baby Boomers and Generation Z peers.
They are also inclined to base financial decisions on thorough research, yet a significant proportion lacks a long-term financial plan, putting their goals at risk.
“Filipino millennials stood out in our study as the most financially resilient generation,” said Carla Gonzalez-Chong, Chief Client Experience and Marketing Officer of Sun Life Philippines.
“As a very tech-savvy generation, millennials have more tools at their disposal when it comes to financial planning and are more likely to base their decisions on research. That said, the study shines a spotlight on a worrying phenomenon that not many have a long-term financial plan in place to meet their life goals.”
“Having a well-thought-out plan needs to be a priority for those looking to secure their financial future, especially in today’s ever-changing and dynamic investment landscape,” she added.
The index, which is based on a survey of 8,000 individuals across the Philippines, Malaysia and Singapore as well as China, Hong Kong SAR, India, Indonesia, and Vietnam, also yielded several other noteworthy findings:
Wealth is not a guarantee of financial resilience — among the most affluent participants in the Philippines, a notable portion exhibit a lack of preparedness. They also tend to underestimate their spending levels or the advantages of a comprehensive, long-term financial strategy. Surprisingly, individuals with higher incomes are more prone to surpassing their monthly budgets (28%) compared to those with lower incomes (24%). Additionally, they express less assurance in effectively managing their finances to achieve long-term objectives when juxtaposed with lower-income cohorts (69% versus 75%).
Confidence outstrips preparedness— while confidence in meeting long-term financial goals is high among Filipinos, actual preparedness falls short. Despite listing retirement and savings as key priorities, a mere 14% have a retirement or pension plan in place. Only 41% have a financial plan extending beyond one year.
The role of trust, emotion in financial resilience— emotion and trust significantly influence financial decision-making for over half of Filipino respondents. While financial institutions are the most trusted sources of financial information, social media remains a common but less trusted platform. Although there is a desire for more personal finance education, reluctance to seek professional advice persists.
Sun Life Asia’s Financial Resilience Index aims to shed light on how individuals navigate unexpected financial events. The study assesses financial resilience across five key pillars: confidence, behaviour, planning, tools, and resources.
Conducted through a double-blind survey in October 2023, the index provides insights into financial attitudes and practices across diverse Asian markets.
To know more about the survey, check out this link: https://sunlife.co/financial-resilience-report-PH.