Some insights into the Singapore Life market here;
Sun Life Singapore today released the latest findings from Sun Life Asia’s third Financial Resilience Index: Asia navigates rising costs, revealing that rising living costs are weakening financial resilience and leaving households less prepared for the future.
The findings show that the proportion of highly resilient households in Singapore has fallen from 34% in 2025 to 21% this year, while low resilience households have more than doubled from 9% to 20%. Only 11% of respondents say they feel very financially secure, down from 22% last year.
This pressure extends across income levels. Among High-Net-Worth (HNW) respondents in Singapore, defined as those from households with annual income of SGD250,000 and above, 76% say inflation has made it harder to cover monthly expenses, while 59% expect moderate or significant lifestyle adjustments if living costs continue to rise. While HNW respondents report stronger financial confidence than the broader population, with 67% saying they feel financially secure, the findings show that higher income does not fully insulate households from rising cost pressures.
Everyday expenses force shorter-term financial decisions
Rising everyday costs exert the most immediate pressure on households in Singapore, with groceries affecting 95% of respondents, followed by utilities (94%), healthcare (89%), cooking fuel (86%) and transport fuel (84%). When asked which expenses had increased the most over the past six months, 80% cited groceries and food, followed by utilities (58%) and transport and fuel (55%).
More than half (52%) say the cost of living is the biggest barrier to taking greater control of their finances. Managing day-to-day expenses is now the top financial priority for 55% of respondents over the next 12 months, ahead of saving for retirement (44%) and building emergency funds (37%).
Christopher Albrecht, Chief Executive Officer, Sun Life Singapore, said: “The findings show that rising costs are placing real pressure on households in Singapore, including those with higher incomes. While affluent consumers may be better positioned to withstand financial shocks, resilience is not guaranteed by income alone. As short-term cost pressures grow, it is increasingly important for individuals to build stronger savings, protection and wealth planning strategies.”
Fewer households firmly positioned to withstand financial pressure
As households manage rising costs, many are making short-term trade-offs that could weaken long-term resilience. More than half of respondents (54%) are reducing non-essential spending, while 24% are drawing down savings, 24% are reducing or skipping essential spending, and 14% have paused retirement savings.
The survey found that consumers in Singapore understand the importance of savings in achieving financial security, with 69% saying sufficient savings are one of the most important foundations of financial security. However, many households continue to face gaps in preparedness: only 41% say they could sustain themselves for more than six months without income or external help.
Among HNW respondents, financial confidence is stronger but not absolute. While 67% feel financially secure and 73% feel prepared for future increases in living costs, only 27% believe they could sustain themselves for more than 12 months without income.
Financial literacy and advice remain key to resilience
Financial literacy continues to be a key differentiator. Seven in 10 respondents in Singapore rate their financial literacy as basic, low or very low. Those with higher financial literacy are 44 percentage points more likely to feel confident about their household financial situation and 41 percentage points more likely to feel optimistic about their financial future.
The findings also show that Generative AI (GenAI) is becoming a more common part of financial decision-making. More than half of respondents in Singapore (53%) use GenAI for financial advice at least sometimes, while 55% expect their usage to increase over the next 12 months. Adoption is higher among HNW respondents, with 74% using GenAI tools regularly when making financial decisions and 69% expecting their usage to increase.
Christopher added: “GenAI can be a helpful starting point for financial research, but financial decisions are deeply personal and often involve balancing immediate needs with long-term priorities, which is where professional, in-person advice can add value. This is especially true for affluent households, where protection, wealth preservation and legacy planning can be more complex. Professional advice remains important in helping people make informed decisions that are aligned with their goals and family responsibilities.”
The full report is available here, and full Singapore HNW findings are appended below.
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