Financial confidence and preparedness are highest among younger adults in Asia and decline in later life stages, according to new research by Prudential plc. The findings point to a pattern in which adults in their late 30s to 60s report lower levels of financial wellbeing and greater concern about their long-term security than those in the 18 to 35 age group. Prudential’s first Financial Wellbeing Index, covering 7,707 adults aged 18 to 60 in eight Asian markets, found that respondents aged 18 to 35 recorded the highest average score at 59.8 out of 100. Those aged 36 to 49 scored 58.2, while respondents aged 50 to 60 scored 57.7, indicating a gradual downward trend across life stages.
The index – conducted from September to December 2025 in Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam – measures four dimensions of financial wellbeing:
It aggregates attitudes, behaviours, and expectations into a composite measure. Despite 46% of respondents rating their financial wellbeing as good or better, the overall regional score stands at 58.9, highlighting a divergence between perceived comfort and broader indicators of financial readiness.
The index points to a divide between the ability to meet current obligations and confidence in long-term financial independence. On average, respondents rated their present financial security at 61.7, but their confidence in future financial freedom was lower, at 55.2. This suggests that while many households are coping with immediate expenses, they are less certain about sustaining their standard of living or managing events such as serious illness, job loss , or large unplanned costs over time.
Only about one-third (34%) said they would not need to continue earning income in retirement. Less than half (47%) felt secure when looking ahead to their financial future, and 45% believed they could handle a major unexpected expense. These gaps are more evident in older age bands, pointing to the role of earlier saving, insurance coverage, and structured retirement planning. Concerns also differ by life stage. Younger adults aged 18 to 35 express more optimism about their financial trajectory but are focused on job stability and family health risks. Respondents aged 50 to 60 are more likely to cite deteriorating health and the rising cost of basic goods and services, including food, utilities, and transport, as key pressure points.
Prudential’s findings show variation across markets in both financial wellbeing scores and perceived access to financial solutions. Vietnam posted the highest overall financial wellbeing score at 65.1. It also recorded the largest proportion of respondents (66%) who strongly or slightly agreed that they have access to financial services and products that support long-term planning. Indonesia (62.0) and Thailand (60.4) followed, with respondents in both markets reporting relatively higher levels of financial knowledge, access to financial services, and planning activity.
Hong Kong registered the lowest financial wellbeing score at 52.5, and respondents there were least satisfied with their access to financial products and services. Across the eight markets, only 18% of respondents strongly agreed that they have the financial tools and solutions needed to achieve long-term financial success. The results indicate a persistent gap between individuals’ awareness of financial needs and their sense of having suitable options available to address those needs.
Separate surveys conducted by FWD Group and Sun Life suggest that these dynamics are feeding into a widening “retirement divide” in Asia’s middle class. Almost 71% of middle-class respondents reported significant anxiety about their overall financial wellbeing, with the rising cost of everyday living identified as a major factor. FWD’s data points to healthcare expenses and the risk of sudden job loss as key sources of vulnerability. In practice, this has led many households to concentrate on short-term financial targets over two to three years rather than on comprehensive retirement strategies.
Sun Life’s research identifies two broad groups: “Gold Star Planners,” who are more likely to retire by choice, and “Stalled Starters,” who delay retirement due to financial pressures. Around seven in 10 middle-class consumers expect to work beyond the traditional retirement age. Approximately 60% say that the need for income, rather than personal fulfilment, is the main reason they stay in the workforce. Only 22% of surveyed middle-class consumers said they feel very confident about their retirement plans. This points to a misalignment between existing retirement, annuity and decumulation solutions, and middle-class expectations around income security in later life.
The combined research sets out how multi-generational responsibilities are shaping financial behaviour across different age cohorts. Generation X respondents report managing competing priorities, such as paying for children’s education while building retirement savings in an environment of persistent inflation. Within this group, 62% worry that their savings will not keep pace with inflation, and more than half rank guaranteed lifelong income as their primary retirement requirement. Generation Y is heavily affected by what is often described as the “sandwich generation” role, with 85% of respondents supporting their parents while also raising children. Nearly half say they are unsure whether they can accumulate sufficient retirement savings while meeting these multi-directional obligations.
Generation Z is encountering financial strain earlier in their working lives, with 53% expecting significant financial difficulties in the next five to 10 years due to rising day-to-day expenses. At the same time, 81% of respondents in Sun Life’s research state that retirement should be a personal choice rather than linked to a mandatory age. Among those categorised as “Stalled Starters,” 52% say they are postponing retirement because they cannot afford to stop working.
The surveys also highlight limited awareness of some insurance and wealth solutions. More than 61% of middle-class respondents say they have never heard of family insurance plans, despite voicing interest in integrated, family-wide coverage. Advice-seeking behaviour is changing. One in five planners has used generative AI for retirement advice, double the share reported the previous year. This suggests growing demand for more accessible forms of guidance alongside traditional advisory channels such as agents, bancassurance partners, and financial planners.
Within this context, Prudential and other insurers are expanding initiatives related to financial education, advice, and planning across life stages. “Longer lifespans across Asia are transforming expectations around financial wellbeing. Customers today are looking beyond financial products – they want confidence, clarity, and a partner who would guide them towards a future that they can genuinely look forward to,” said Angel Ng, regional CEO, Greater China; group customer, wealth, and product, Prudential plc. She added: “At Prudential, we believe financial planning is not just about preparing for later years; it is about enabling wellbeing at every stage of life. We are committed to empowering our customers and communities with the knowledge, advice, and protection to help them build resilience early, safeguard what matters through life’s transitions, and enjoy healthy, fulfilling, and financially confident longevity.”
The Prudence Foundation’s Cha-Ching financial literacy programme, which targets children aged 7 to 12, has reached more than 3.9 million students and teachers across Asia and Africa as it marks its 10th year. Prudential is also developing a digital-first financial literacy programme for adults intended to support broader financial security and financial freedom. As financial pressures build across generations, insurers in Asia are moving beyond a narrow focus on risk transfer toward a wider role in retirement income, decumulation strategies, and multi-generational planning, reflecting the survey findings on financial wellbeing and retirement readiness across the region.
