Why 6 in 10 Gen Zs don’t feel financially secure

But emergency savings has gained traction amongst the generation.

Over half of Generation Z (Gen Z) indicated feeling financially secure, versus that of the 69% amongst baby boomers and 66% amongst millennials, according to Sun Life Asia.

Gen Z also shows a more conservative investment approach, with 59% identifying as conservative investors, and 28% reporting they do not seek any financial advice. However, they are the most likely to turn to AI tools (19%) for guidance, revealed the insurer in its latest Financial Resilience Index.

The index surveyed over 6,000 individuals across Hong Kong, the Philippines, Indonesia, Malaysia, Singapore, and Vietnam. 

The report shows that whilst overall perceptions of financial security have improved slightly, younger generations—particularly Gen Z—face the most significant financial challenges.

Across the region, persistent inflation continues to impact daily living. 

About 92% of respondents report feeling the effects of rising prices, and 44% say it significantly affects their ability to meet monthly expenses. 

Short-term needs are now taking precedence over long-term planning: 60% prioritise managing day-to-day expenses, up from 54% last year, whilst retirement planning has dropped from second to sixth place in financial goals.

Emergency savings have gained importance, with 42% citing it as a top priority. 

Yet long-term financial planning remains weak—54% of respondents do not have a financial plan beyond 12 months, and only 8% are planning further than 10 years ahead.

The index also highlights a growing divide in financial resilience. Highly resilient individuals are more likely to invest, save for education, and consult professional advisors. 

About 45% say they could support themselves for more than six months during a crisis. 

In contrast, only 13% of low-resilience respondents expect to meet long-term financial goals, and 89% say they couldn’t financially sustain themselves beyond six months in an emergency.