Financial Resilience and Literacy in Asia Pacific: Key Takeaways for Business Leaders

Financial Resilience and Literacy in Asia Pacific: Key Takeaways for Business Leaders

July 2025

Across Asia, while inflation in major economies appears to be easing, the region continues to feel the impact of rising costs. Financial pressure is leading more people to prioritise day-to-day budgets over long-term planning, affecting financial resilience.

Financial resilience is crucial to individuals’ ability to navigate their way through turbulent times, while financial literacy is key to understanding how to achieve that resilience.

New Research from Sun Life on Financial Resilience

According to new research published by Sun Life, financial resilience and how it’s managed by individuals in Asia Pacific is not only impacted by price increases but shows stark differences across generations. The research also points to a significant gap in financial literacy, between the perceived and actual levels of literacy, in the region.

In this article we look at this new research, some important key takeaways, and how these takeaways can guide financial leaders in Asia Pacific in tailoring their messaging to better align with the needs of diverse audiences.

What Does the Research Tell Business Leaders?

Based on a survey of 6,000 respondents across Hong Kong, the Philippines, Indonesia, Malaysia, Singapore, and Vietnam, the report Financial Resilience Index: Balancing today’s needs and tomorrow’s goals provides detailed insights into how individuals across the region are managing their finances while navigating an uncertain financial landscape.

The study shows that the impact of inflation is being experienced widely across the region, with 92% across Asia saying they are feeling the effects of price increases, while almost half note a significant impact on their ability to cover monthly expenses, and a majority, 60%, saying that managing day-to-day budgets is their leading financial priority over the next year.

Some Key Takeaways for Leaders in Asia Pacific

There are three key takeaways in the research of interest to business leaders in Asia Pacific with respect to financial resilience and literacy –

Takeaway 1: Substantial divide in financial resilience

There are stark differences between high resilience individuals – those with high ability to withstand financial shocks and meet financial goals and low resilience individuals – those with more limited ability to withstand financial shocks and with limited confidence in meeting financial goals. Of high resilience individuals 83% are sure they can meet short-term obligations and 82% believe they will achieve long-term savings goals. The contrast to low resilience individuals is evident – only 25% say feel can manage finances in the short-term, and just 13% expect to meet long-term financial goals.

Takeaway 2: Large generational divide emerging in Asia

A substantial generational divide in financial resilience and literacy is emerging, especially between Gen Z and the Baby Boomer generation. In terms of resilience, a larger proportion, 69%, of baby boomers, and 66% of millennials, feel financially secure and educate themselves, compared to Gen Z of whom 57% feel financially secure. When it comes to financial advice, 28% of Gen Z individuals seek no help when making financial decisions, compared to 18% of the total, even though they arguably need financial advice the most. Clearly there’s both a gap and an opportunity for leaders to address this gap.

Takeaway 3: There is a significant financial literacy gap

While there are differences between groups, our research shows that people in Asia Pacific overestimate their financial literacy. Only 6% rated their financial knowledge as poor or very poor, but when tasked to answer basic financial literacy questions, a much larger proportion, 15-27% depending on groups got their answers wrong. The research indicates there is a knowledge gap spanning across generations, and that there are opportunities to better educate the audience, to give them greater control over their financial journeys.

So, how can business leaders in Asia Pacific leverage the findings from the research and specifically these three key takeaways?

A Guide to a More Tailored and Nuanced Approach

Business leaders in Asia Pacific should consider the following points when planning financial communications outreach and information programmes or campaigns, especially around financial resilience and literacy.

Firstly, outreach, whether long-term communications programmes, or short-term campaigns, they should consider the fact that there is a substantial divide between high and low resilience individuals, and tailor the messaging, tone and language according to the needs and priorities of these two, very distinct audiences.

Secondly, the generational divide must also be accounted for. While there is some correlation between this and the above factor, they don’t track coherently. Engagement must therefore also be adapted to different age groups, ranging from messaging and channels to spokespersons and visual language.

Finally, and perhaps most challenging, leaders need to address the gap between perceived and actual financial literacy. While aligning with perceived financial literacy levels of target audiences, communications should reflect educational elements, packaged in a way that seeks to meet both the perceived and actual levels of financial literacy.

Sandpiper Research & Insights combine deep data and research expertise, with many years of experience in financial services and a solid understanding of audiences across Asia Pacific. This allows us to support business leaders – transforming complex issues into powerful narratives – to strengthen brands and messaging.

Read more about Sandpiper Research & Insights here: https://sandpipercomms.com/research/

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