Sun Life Research, Indonesian Millennials Have the Highest Financial Awareness

JAKARTA – Sun Life released the Sun Life Financial Resilience Report in Asia which examines the behavior and beliefs about the financial condition of individuals in eight Asian regions, including Indonesia, along with the challenges faced in building resilience financial long-term. The research results show millennial generation Indonesia has the highest level of financial resilience.

Apart from that, all generations also have high self-confidence and optimism regarding financial conditions. But unfortunately most of them do not have financial planning for the future.

The Sun Life Financial Resilience Index in Asia is based on a survey of 8,000 respondents in eight countries, namely Indonesia, Malaysia, Singapore, China, Hong Kong, India, the Philippines and Vietnam.

Millennials Show Solid Financial Resilience
In a survey of 1,000 households in Indonesia, the millennial generation was proven to be the most financially resilient generation. They scored highest on the Financial Literacy and Self-Confidence Index, compared with older age groups (52% vs. 46%). Moreover, they are also optimistic about realizing long-term goals (70% vs. 64%), and tend to make financial decisions based on research (60% vs. 47%).

Millennials are more likely to stick to their monthly budget (71%) compared to other generations: Gen Z (70%), Gen X (68%), and baby boomers (69%). However, most millennial respondents (45%) do not have a financial plan for more than one year, which could threaten their long-term financial goals.

President Director of Sun Life Indonesia Elin Waty said that the Indonesian millennial generation showed extraordinary financial resilience. With a better understanding of technology, millennials have a variety of tools for financial planning, supported by their tendency to make decisions based on research.

But this report highlights a more worrying phenomenon. Where only a few of the Indonesian millennial generation have long-term financial planning to achieve their life goals. “This emphasizes the importance for millennials to prioritize financial planning, considering the dynamic changes in the investment world today,” he said in a press release, Sunday (31/3/2024).

Confidence that Exceeds Readiness
This research found that across Asia, the level of confidence in achieving long-term financial goals is higher than the level of readiness. In Indonesia, 65% of respondents are confident they can achieve their long-term financial goals (compared to the Asian average of 69%). Yet only 43% have a financial plan more than a year ahead (compared to the Asian average of 40%).

In addition, although pension funds and savings are the second most important financial priority for Indonesians, only 21% have established a pension or savings plan to achieve their financial goals in the future.

“The Sun Life Financial Resilience Index provides a snapshot of how Indonesian households are achieving financial goals to protect their future. It is encouraging to see so many individuals feeling more optimistic about their finances in 2024, and this optimism needs to be realized through concrete financial plans, with simple and clear steps to achieve financial security and live a healthier life,” he explained.