Economic Research by Sun Life underscores inflationary pressures in Singapore
Singapore, 1st June – Sun Life Singapore has launched the SunBrilliance Whole Life insurance solution, an enhancement to its existing Future - S whole life insurance solution. The launch comes at a time when a volatile financial landscape has caused many Singaporeans to re-evaluate their financial priorities.
According to the Sun Life Asia Financial Resilience Balancing survey, 90% of Singapore respondents feel the effects of persistent price increases, and 42% note a significant impact on their ability to cover monthly expenses. The survey, which provides insights into how individuals across the region are managing their finances, reveals major challenges for Gen Z in its second iteration. However, it did not provide specific details about the challenges faced by Gen Z or the regions covered.
The financial resilience index for Singapore in 2025 reveals a notable trend where individuals increasingly prioritize short-term financial needs over long-term wealth planning. This shift is largely driven by the impact of inflation and economic uncertainty, which has caused a decline in long-term financial foresight, including the ownership of life insurance and investment products.
Specifically, a recent Sun Life Asia Financial Resilience Index found that only 8% of Singaporeans plan their finances more than 10 years ahead, highlighting a widespread gap in long-term financial planning. The number of people holding life insurance and investment products fell by about 18-19% compared to the previous year, reflecting a tendency to focus resources on immediate needs amid inflationary pressures.
This short-term focus contrasts with Singapore's broader economic resilience: the Singapore Dollar remains strong against global headwinds, supported by export-driven growth and a recovering manufacturing sector, indicating macroeconomic stability despite external trade tensions. The Monetary Authority of Singapore (MAS) maintains a cautious monetary policy to navigate inflation and financial market volatility, emphasizing stress testing and urging vulnerable businesses and households to build financial buffers and exercise prudence to maintain stability.
Challenges highlighted include risks faced by smaller, externally oriented firms vulnerable to revenue drops and households with unstable incomes, underscoring a need for improved financial resilience beyond short-term measures. Overall, while Singapore's economy shows strength and structural advantages, financial resilience at the individual level is challenged by inflation and global uncertainties, leading to a pronounced short-term orientation rather than long-term wealth accumulation.
In response to these challenges, Sun Life Singapore has released its second Sun Life Asia Financial Resilience Index and the SunBrilliance Whole Life insurance solution. Managing day-to-day expenses is the top financial priority for 60% of respondents, up from 43% last year. Building emergency savings has become the second most important goal (41%). More than half of respondents (57%) lack a financial plan that extends beyond 12 months.
The SunBrilliance Whole Life insurance solution is an innovative offering from Sun Life Assurance Company of Canada Singapore Branch. It aims to provide a comprehensive solution for long-term financial planning, offering benefits such as lifetime protection, cash value accumulation, and the potential for tax-advantaged growth.
As the world continues to navigate uncertain economic conditions, it is crucial for individuals to prioritize long-term financial planning alongside immediate needs. The SunBrilliance Whole Life insurance solution and the insights provided by the Sun Life Asia Financial Resilience Index serve as valuable resources for Singaporeans seeking to build a more financially resilient future.
Investing in a comprehensive long-term financial planning solution like the SunBrilliance Whole Life insurance could be beneficial for Singaporeans, as many individuals prioritize managing day-to-day expenses over long-term wealth planning, and more than half lack a financial plan extending beyond 12 months. The volatile financial landscape and inflation have caused a decrease in life insurance and investment products ownership among Singaporeans, highlighting the need for personal-finance education and strategies for a solid financial future. Given these business and personal-finance circumstances, it is essential for individuals to consult resources such as the Sun Life Asia Financial Resilience Index to make informed decisions on their financial events and investing strategies.
