Gen Z Shows Weakest Financial Resilience, Sun Life Report Finds
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JAKARTA, Investortrust.id — Gen Z faces the weakest financial resilience among Indonesian generations, according to the latest report from Sun Life Indonesia. The second edition of the Sun Life Asia Financial Resilience Index: Balancing Today’s Needs and Tomorrow’s Goals shows that younger Indonesians are the most financially vulnerable group, primarily due to the pressure of rising living costs and a lack of confidence in managing their finances.
Defined as those born between 1997 and 2012, Gen Z is significantly less secure financially compared to other generations. The report highlights a persistent generational gap in long-term financial stability. While overall perceptions of financial wellness have slightly improved, only 49% of Gen Z respondents said they feel financially secure. This figure stands in contrast to 61% among Millennials (born 1981–1996) and 63% among Baby Boomers (born 1946–1964).
The study also found that 58% of Gen Z respondents identify as conservative investors, suggesting a tendency to avoid risk. This cautious approach may reflect a limited understanding of how to balance risk and long-term returns. As a result, many are ill-equipped to build sustainable financial plans, especially in an economy marked by uncertainty.
“Gen Z has a long runway to shape their financial future, but many are overwhelmed by anxiety and self-doubt,” said Kah Jing Lee, Chief Client and Distribution Officer of Sun Life Indonesia, in a written statement released on Friday.
Lee explained that Gen Z came of age in a period of economic turbulence and high cost-of-living pressures. She emphasized that strengthening financial literacy and improving access to reliable information will be key to helping them build greater long-term financial resilience.
The report also revealed that in today’s unpredictable economic climate, building an emergency fund has become the second most important financial priority for Indonesians, cited by 42% of respondents. However, readiness for long-term financial planning remains low.
More than half of survey participants, or 55%, admitted they have no financial plan beyond the next 12 months. Only 9% have structured their finances with a horizon longer than a decade. This points to a broader lack of long-term planning that is essential for building lasting financial security.
Kah Jing Lee noted that the findings reveal a growing divide between individuals who actively prepare for their financial future and those who remain preoccupied with meeting daily needs. She stressed that in challenging economic times, financial literacy and proactive planning become even more critical.
“For this reason, Sun Life is committed to providing relevant guidance and financial solutions so that Indonesians can manage their finances with greater confidence,” she said.