Sun Life Financial Resilience Index Finds Inflation Forcing Malaysians to Prioritise Short-Term Needs, with Gen Z Feeling Least Financially Secure

 Sun Life Malaysia today unveiled its second Sun Life Asia Financial Resilience Index: Balancing today’s needs and tomorrow’s goals, offering a detailed look into how individuals across the region are managing their finances while navigating today’s volatile financial landscape. In Malaysia, the findings reveal that while overall perceptions of financial security have slightly improved, the reality is more sobering – particularly for Gen Z, who emerge as the least financially secure and resilient generation surveyed, in sharp contrast to 66% of Baby Boomers who feel financially secure.

 

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

 

Short-Term Focus Over Long-Term Wealth

 

After several years of high inflation, many people are struggling to manage their daily and long-term expenses. 92% of people are feeling the effects of persistent price increases, and 43% note a significant impact on their ability to cover monthly expenses.

 

As rising living costs continue to squeeze household budgets, more Malaysians are focused on meeting their immediate needs rather than planning for their future goals. Managing day-to-day expenses is the top financial priority for 62% of respondents, up from 55% last year, while retirement planning has dropped from second to seventh place this year – a clear sign that budgeting for the present has taken precedence over long-term goals.

 

In an uncertain economic environment, building emergency savings has also climbed the ranks and is now the second most important goal (41%).

 

Achieving financial security is further challenged by a lack of long-term planning. Despite slight year-on-year improvements, long-term financial preparedness remains dangerously low. More than half of respondents (56%) still lack a plan that extends beyond 12 months, and only 8% are planning further than 10 years ahead, revealing a widespread gap in financial foresight and resilience.

 

Ho Teck Seng, President & Country Head at Sun Life Malaysia said the findings show a clear divide: “While some Malaysians feel financially secure, many are struggling with daily expenses and lack of long-term financial planning. The situation is made worse by increasing inflation, which especially impacts the younger generations. As a trusted insurance and takaful company, we recognise the important role we play in helping Malaysians improve their financial literacy so they can manage their money better, save more, and reach their future goals.”

 

Building on the success of the InsureLit Campaign 2024, Sun Life Malaysia is set to expand its efforts in 2025 with a series of targeted initiatives. These include digital and social educational resources, nationwide roadshows, an explainer video series, and a youth-focused financial literacy programme. Through these initiatives, the company aims to deepen public understanding of financial planning and empower Malaysians—especially younger generations—with the tools and knowledge to make informed financial decisions.