Inflationary Impact Analysis Conducted by Sun Life Research in Singapore
Sun Life Singapore has unveiled the findings of its second Sun Life Asia Financial Resilience Index, offering insights into how individuals across the region manage their finances, especially in the context of a volatile financial landscape. The survey included over 6,000 respondents, including 1,000 in Singapore.
Balancing Today's Needs and Tomorrow's Goals
The key findings of the report, titled Balancing today's needs and tomorrow's goals, reveal that inflation significantly impacts Singaporeans' financial behavior, shifting focus from long-term wealth to immediate financial needs. Notably, the number of people with life insurance and investment products dropped by 19% and 18% respectively compared to the previous year.
About 90% of respondents feel the effects of persistent inflation, with 42% reporting a substantial impact on their ability to cover monthly expenses. As a result, managing day-to-day expenses became the top financial priority for 60% of respondents, up from 43% the previous year, while retirement planning fell from second to sixth place in priority. Building emergency savings also rose to the second most important goal for 41% of people surveyed.
Impact Across Income Levels
The report shows that inflation affects even high-income earners in Singapore, with 89% of wealthy respondents feeling the pinch of rising prices and 43% significantly affected in covering monthly expenses.
Health is a top priority, with 94% stating it matters most, yet only 44% feel confident about staying healthy after retirement or being financially prepared for long-term medical care. Mental health pressures, complex healthcare and insurance, and difficulties adopting new habits are main barriers to financial confidence.
Innovative Offering Addresses Financial Resilience
In response to these challenges, Sun Life Singapore has launched the SunBrilliance Whole Life insurance solution, an enhancement to its existing Future - S whole life insurance solution. The SunBrilliance Whole Life insurance solution is an innovative offering from Sun Life Singapore, designed to provide comprehensive financial protection and support for Singaporeans.
Transitioning to a Resilient, Low-Carbon Economy
Separately, WTW has announced the launch of an Asia Pacific Climate Risk Centre (ACRC) in Singapore. The ACRC aims to help the region transition to a resilient, low-carbon economy, addressing another critical aspect of financial resilience in the face of global climate change.
In summary, the report highlights a widespread shift toward short-term financial priorities driven by inflation and uncertain economic conditions, a decline in life insurance and investment product ownership, increased concern over managing current expenses and building emergency funds, health and wellness concerns remaining high but financial preparedness for long-term care being low, and inflation impacts across all income levels, including high-net-worth individuals.
These findings reflect the challenges Singaporeans face in balancing immediate financial needs with securing their future financial resilience.
[1] Sun Life Singapore, Balancing today's needs and tomorrow's goals, 2023. [2] WTW, Asia Pacific Climate Risk Centre, 2023.
- Individuals in Singapore, regardless of their income levels, are focusing on immediate financial needs due to inflation, as revealed in the Balancing today's needs and tomorrow's goals report published by Sun Life Singapore.
- In an attempt to address financial resilience, Sun Life Singapore has introduced the SunBrilliance Whole Life insurance solution as a comprehensive financial protection for Singaporeans, aiding in their personal-finance budgeting amid volatile economic circumstances.
