A recent consumer outlook survey by FWD Group Holdings Limited has revealed that over 70 percent of Asia's middle class experience anxiety about their financial wellbeing, with this concern significantly impacting their ability to plan for the long term. The pan-Asian survey, conducted with Ipsos, gathered responses from over 9,000 middle-class consumers aged 21-65 across ten markets, including Cambodia, Hong Kong SAR, Indonesia, Japan, Macau SAR, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The findings indicate that rising living costs, healthcare expenses, and fears of income loss are forcing individuals to focus on short-term financial goals, often at the expense of retirement planning.
The data shows that 71 percent of respondents cited the rising cost of everyday living as a top concern, followed by high healthcare costs at 43 percent, and unexpected job loss or income reduction at 37 percent. As a result, nearly half (44 percent) of those surveyed aim primarily to build a basic safety net for their families within a two-to-three-year timeframe, while only 37 percent list achieving financial independence as a goal. Lee Yen Ho, Group Chief Distribution and Proposition Officer at FWD Group, stated, "It's clear that there is a shared sense of financial vulnerability across generations of middle classes in Asia. As people live longer and family structures evolve, building the financial resilience to protect loved ones and turn savings into sustainable lifetime income will become increasingly essential."
The survey also uncovered distinct generational pressures. Generation X, born between 1965 and 1980, faces the challenge of funding education, paying mortgages, and preparing for retirement simultaneously, with 62 percent worrying their savings won't keep pace with inflation. Generation Y, or Millennials (born 1981-1995), juggle multiple responsibilities, with 85 percent supporting their parents in addition to caring for their own children, and 49 percent worrying about saving for retirement. Notably, 61 percent of this generation have never heard of family insurance plans, despite 47 percent seeking efficient solutions to cover multiple family members. Generation Z (born 1996-2010) anticipates growing financial pressure, with 53 percent expecting difficulties in the next five to ten years and 46 percent finding insurance products too expensive.
This widespread anxiety has significant implications for financial markets, insurance industries, and economic stability across Asia. The shift toward short-term financial planning could affect long-term savings rates, pension systems, and overall economic resilience. In response, FWD Group highlights its existing products designed to address these concerns. For instance, in Hong Kong, the One&All medical insurance plan offers flexible family coverage. In Japan, a single-yen premium annuity product aims to meet retirement planning demand, while in Thailand and Singapore, plans like the FWD Sure pension and FWD Invest Flexi Elite help with structured income and wealth-building. In Indonesia, the FWD Critical First protection plan provides affordable coverage against rising costs.
The survey underscores a critical need for financial education and accessible products to help Asia's middle class build resilience. As costs rise and family dynamics shift, the inability to plan long-term could exacerbate economic inequalities and strain social safety nets, making this a pressing issue for policymakers and financial institutions alike.
