Sun Life Asia Financial Resilience Index: Financial Security Declines as Cost-of-Living Pressure Bites

• More than eight in ten people surveyed across Asia (83%) say inflation has made it harder for them to meet their monthly costs.
• Cost of everyday essentials is soaring; rising grocery prices are affecting 95% of people surveyed, followed by utilities (94%), transport fuel (92%), healthcare (91%) and cooking fuel (91%).
• As a result, just 25% of those surveyed are highly resilient, down from 32% in 2025. Only 13% feel fully secure about their financial position.
• Faced with a short-term budget squeeze, more than half of respondents (55%) are planning no further than a year ahead.
• Nearly two-thirds (61%) would not cope beyond six months in the event of a sudden loss of income.
• Households with higher financial literacy are more likely to feel confident (by 48 percentage points), more likely to feel optimistic (by 43 points), and less likely to experience frequent stress (by 14 points) about the economic environment.

HONG KONG, June 9, 2026 /PRNewswire/ -- Sun Life Asia today released its third Financial Resilience Index: Asia navigates rising costs, revealing new insights into the impact of the cost-of-living crisis across the region. As high inflation continues to impact the global economy, this year's report shows that rising living costs are putting sustained pressure on families, weakening financial resilience and leaving households less prepared for the future. Budgets are significantly strained, with more than eight in ten people surveyed (83%) saying inflation has made it harder to cover their monthly costs.

Cost of living pressure hits household finances

The findings highlight inflation's real-world impact as geopolitical and macroeconomic headwinds, including Middle East tensions and the resulting oil price shock, squeeze family budgets. Rising everyday costs are the most immediate pressure on households in Asia, with grocery prices affecting 95% of people, followed by utilities (94%), transport fuel (92%), cooking fuel (91%) and healthcare (91%).

Nearly half (48%) of those surveyed say rising costs are the biggest barrier to taking control of their finances, highlighting how much financial decision-making in 2026 is shaped by affordability, and more than eight in 10 (83%) say it is harder to cover their monthly expenses. In response, households are making short-term trade-offs to balance the books, yet these compromises are coming at the expense of long-term financial security and the ability to weather future storms.

David Broom, Chief Client and Distribution Officer at Sun Life Asia, said, "What stands out this year is not just the scale of cost pressure but how it is changing financial behaviour. Rising living costs are forcing people to rethink how they manage their money on a day-to-day basis, with the price of food, fuel, and household bills placing increasing pressure on budgets.  As a result, many people are becoming more focused on short-term financial decisions, and that shift is starting to affect their financial resilience."

Fewer families firmly positioned to withstand financial pressure

In an uncertain economic environment, the proportion of highly resilient households has fallen from 32% in 2025 to 25% this year. As families live with a reduced financial buffer, only 13% say they feel fully secure about their financial situation, down from 19% last year, underscoring the scale of the financial impact across Asia.

In response to rising everyday expenses, people are shortening financial planning horizons and making decisions that compromise their long-term stability. Short-term decisions are becoming a key driver of declining resilience across the region; one in four respondents are drawing down savings, 27% are reducing or skipping essential spending, and 10% have paused retirement contributions.

Managing day-to-day expenses is the top priority for 53% of people over the next 12 months, ahead of saving, investing, or long-term planning. More than half (55%) of people have no financial plan or are planning no further than a year ahead, and 61% would not be able to cope for more than six months without external financial support in the event of job loss or illness.

Financial literacy fuels confidence

While cost-of-living pressures are widespread across Asia, their impact is not felt evenly. Financial literacy emerges as a key differentiator, with those who have stronger knowledge and skills significantly more likely to feel confident about their financial situation and optimistic about the future, despite current challenges.

Households with higher financial literacy are more likely to feel confident (by 48 percentage points), more likely to feel optimistic (by 43 points), and less likely to experience frequent stress (by 14 points). These differences are also reflected in behaviour, as households with stronger financial capability are more likely to plan ahead and maintain longer-term financial habits, while others remain focused on immediate costs.

Against a challenging economic backdrop, access to financial information has expanded significantly, including the growing use of generative AI tools in financial decision-making. Around two-thirds (60%) of respondents say they use GenAI tools regularly for financial advice compared to 18% in 2025. However, greater access to information has not consistently translated into stronger financial confidence or preparedness across the board. Strong financial literacy remains a key differentiator in how households react to economic pressure.

In volatile times, household financial resilience is becoming increasingly uneven across Asia. While cost pressures affect households across all income levels, differences in financial knowledge and access to guidance are influencing how people respond, with those better informed more likely to sustain confidence and stay focused on longer-term goals despite ongoing pressures.

Broom said, "As financial decisions become more short-term, the risk is that people lose sight of longer-term outcomes. Even with more access to information and tools, navigating complex financial decisions still requires guidance. This is where professional financial advice continues to play an important role in helping people turn short-term choices into long-term plans." 

The full report is available here.

About this survey

The research surveyed more than 6,000 respondents across Hong Kong SAR, Indonesia, Malaysia, the Philippines, Singapore, and Vietnam, and highlights trends in financial planning, literacy, risk appetite, and the role of professional advice in building long-term resilience in May 2026.

The Index categorises households into low, moderate, and high resilience groups based on how secure they feel and how they manage their finances. It highlights the behaviours and attitudes that distinguish those who are prepared for shocks from those who are more vulnerable.

The Index looks at five key aspects of everyday financial life:

• Financial security: whether households feel secure or insecure in their current situation
• Planning horizon: how far ahead they plan, from only a few months to more than five years
• Emergency preparedness: their ability to cope with unexpected financial shocks
• Financial literacy: how well they understand personal finance concepts and rate their own knowledge
• Confidence in long-term goals: whether they feel able to meet future financial commitments

Together, these dimensions provide a fuller picture of how households are managing today's pressures, and how prepared they are for what comes next.

About Sun Life

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the U.S., the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2026, Sun Life had total assets under management of $1.58 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Media relations contact: Adam Welch, Director, Communications, Asia, M: +852 9071 1821, E: [email protected]

SOURCE Sun Life Asia