Singapore financial security sinks amid rising living costs

Only 11% felt very financially secure down from 22% in 2025.

Rising living costs are weakening household financial resilience, with fewer Singaporeans feeling financially secure and more struggling to prepare for future financial shocks.

According to findings from Sun Life Asia's third Financial Resilience Index, the proportion of highly resilient households in Singapore fell to 21% in 2026 from 34% a year earlier. 

At the same time, the share of low-resilience households more than doubled to 20% from 9%. Only 11% of respondents said they felt very financially secure, down from 22% in 2025.

The survey found that rising costs are affecting households across income levels. 

Amongst high-net-worth (HNW) respondents, defined as those from households earning at least SGD250,000 annually, 76% said inflation had made it harder to meet monthly expenses. 

Nearly six in 10 (59%) said they would need to make moderate or significant lifestyle changes if living costs continue to increase.

Whilst HNW respondents reported stronger financial confidence than the wider population, with 67% saying they felt financially secure, the study found that higher incomes have not fully shielded households from cost pressures.

Everyday expenses remain the biggest source of financial strain. Groceries affected 95% of respondents, followed by utilities (94%), healthcare (89%), cooking fuel (86%) and transport fuel (84%). 

When asked which expenses had risen the most over the past six months, 80% cited groceries and food, followed by utilities at 58% and transport and fuel at 55%.

More than half of respondents (52%) said the cost of living was the main obstacle preventing them from 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%).

Christopher Albrecht, chief executive officer of Sun Life Singapore, said the findings show that rising costs are placing significant pressure on households, including higher-income families. 

He said financial resilience depends on more than income and highlighted the importance of savings, protection and wealth planning.

The report found that many households are making short-term financial adjustments to cope with rising costs. 

More than half (54%) have reduced non-essential spending, whilst 24% are using their savings to cover expenses. Another 24% have cut back on essential spending, and 14% have paused retirement contributions.

Although 69% of respondents said sufficient savings are one of the most important foundations of financial security, only 41% said they could support themselves for more than six months without income or external assistance.

Amongst HNW respondents, 73% said they felt prepared for future increases in living costs, but only 27% believed they could sustain themselves for more than 12 months without income.

The survey also highlighted the link between financial literacy and resilience. 
Seven in 10 respondents rated their financial literacy as basic, low or very low. 

Those with higher levels of financial literacy were 44 percentage points more likely to feel confident about their household finances and 41 percentage points more likely to be optimistic about their financial future.

The report found growing use of generative artificial intelligence (GenAI) in financial planning. 

More than half of respondents (53%) said they use GenAI for financial advice at least occasionally, and 55% expect their use of the technology to increase over the next year. 

Amongst HNW respondents, 74% said they regularly use GenAI tools when making financial decisions, whilst 69% expect usage to rise further.

Albrecht said GenAI can support financial research but noted that professional advice remains important, particularly for affluent households managing more complex needs such as wealth preservation, protection and legacy planning.

The survey covered more than 6,000 respondents across Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Vietnam in May 2026. 

It assesses household resilience based on financial security, planning horizons, emergency preparedness, financial literacy and confidence in meeting long-term financial goals.