30% of Malaysian millennials grasp insurance basics

66% of Malaysians feel like they can reach their long-term financial goals.

About 28% of Malaysian millennials are confident in their knowledge of insurance and takaful products, but 69% are optimistic about their financial futures.

Malaysia’s millennials are also more likely to make financial decisions based on research (65%) compared to their older peers (62%), revealed Sun Life’s  “Asia Financial Resilience Index - Malaysia”.

Also, seven in 10 Malaysians are more confident in being able to meet their long-term financial goals compared to older generations (57%). 

However, only 40% of millennial respondents have a financial plan beyond one year ahead, which puts their financial goals at risk. 

“That said, the study shines a spotlight on a worrying phenomenon that not many have a long-term financial plan in place to meet their life goals. Having a well thought out plan needs to be a priority for those looking to secure their financial future, especially in today’s everchanging and dynamic investment landscape,” Raymond Lew, CEO and President/Country Head of Sun Life Malaysia said in an announcement.

About 66% of Malaysians feel like they can reach their long-term financial goals. This, however, is lower than the region’s average of 69%. “Malaysians listed retirement and savings as their second highest financial priority, but only 18% currently have a retirement or pension plan to support their goals.” the report said.

ALSO READ: S'poreans find wealth does not equate to financial resilience: Survey

Behavioural traits

Over a third of respondents (36%) in Malaysia stated that emotion and trust were influencers in making financial decisions. 

Forty-three per cent (43%) sought their financial advice in social media, whilst 11% said they trusted the information retrieved.

Nearly half (48%) also shared they want to learn more about personal finance, but hesitate when asking for help – as 24% are seeking professional advice for financial management.

Wealth segment troubles

The survey also revealed that even the richest of individuals, the wealthy also experienced gaps relating to preparedness, underestimating expenditure and lack of long-term financial planning. Lower and high-income respondents are almost as likely to exceed their monthly budgets (21% vs 18%).

However, only 46% of high-income respondents have a financial plan beyond one year. 

The index also showed that more than half of high-income earners are able to save for long-term goals, whilst covering short-term obligations. Despite this, low-income earners are not far off, with 49% saying they can do the same

The Sun Life Asia Financial Resilience Index was conducted to understand how individuals plan for and overcome unexpected high-impact financial events. 

The study measures financial resilience against five key pillars: confidence, behaviour, planning, tools and resources. It is based on a double-blind survey conducted in October 2023 of 8,000 people (1,000 per market) in eight markets: Malaysia, Indonesia, mainland China, Hong Kong SAR, India, Singapore, the Philippines, and Vietnam.