Rising living costs are weakening financial resilience and leaving households less prepared for the future, according to Sun Life Singapore Financial Resilience Index.
Sun Life Asia’s third “Financial Resilience Index: Asia navigates rising costs”, released on 9 June 2026 revealed that rising living costs are weakening financial resilience and leaving households less prepared for the future.
The Index 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% in 2025.
A press release issued by Sun Life Singapore said, “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 ($194,454) 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.
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%).
Sun Life Singapore CEO Christopher Albrecht said, “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.”
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 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.
Mr Albrecht said, “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. Professional advice remains important in helping people make informed decisions that are aligned with their goals and family responsibilities.”