Sun Life Asia Financial Resilience Index: Financial Security Declines as Cost-of-Living Pressure Bites

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HONG KONG, June 9, 2026 /PRNewswire/ -- Sun Life Asia today released its third Financial Resilience Index: Asia navigates rising costs, revealing new insights into the impact of the cost-of-living crisis across the region. As high inflation continues to impact the global economy, this year's report shows that rising living costs are putting sustained pressure on families, weakening financial resilience and leaving households less prepared for the future. Budgets are significantly strained, with more than eight in ten people surveyed (83%) saying inflation has made it harder to cover their monthly costs. Cost of living pressure hits household finances The findings highlight inflation's real-world impact as geopolitical and macroeconomic headwinds, including Middle East tensions and the resulting oil price shock, squeeze family budgets. Rising everyday costs are the most immediate pressure on households in Asia, with grocery prices affecting 95% of people, followed by utilities (94%), transport fuel (92%), cooking fuel (91%) and healthcare (91%). Nearly half (48%) of those surveyed say rising costs are the biggest barrier to taking control of their finances, highlighting how much financial decision-making in 2026 is shaped by affordability, and more than eight in 10 (83%) say it is harder to cover their monthly expenses. In response, households are making short-term trade-offs to balance the books, yet these compromises are coming at the expense of long-term financial security and the ability to weather future storms. David Broom, Chief Client and Distribution Officer at Sun Life Asia, said, "What stands out this year is not just the scale of cost pressure but how it is changing financial behaviour. Rising living costs are forcing people to rethink how they manage their money on a day-to-day basis, with the price of food, fuel, and household bills placing increasing pressure on budgets. As a result, many people are becoming more focused on short-term financial decisions, and that shift is starting to affect their financial resilience." Fewer families firmly positioned to withstand financial pressure In an uncertain economic environment, the proportion of highly resilient households has fallen from 32% in 2025 to 25% this year. As families live with a reduced financial buffer, only 13% say they feel fully secure about their financial situat...

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