A consumer outlook survey by FWD Group has revealed that a majority of Asia's middle class feel financially anxious and underprepared for retirement, as rising living costs and growing family responsibilities reshape financial priorities across generations.
The pan-Asian survey, conducted with Ipsos, surveyed over 9,000 middle-class consumers aged 21-65 years old across the 10 markets where FWD operates – Cambodia, Hong Kong SAR, Indonesia, Japan, Macau SAR, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
The survey revealed that 71% of middle-class consumers feel anxiety about their overall financial well-being, with the top three concerns being the rising cost of everyday living (71%); high cost of healthcare (43%); and unexpected job loss or a reduction in their income (37%). As a result, their primary financial goals are focused on a two-to-three-year time frame. Almost half (44%) of the respondents aim to build a basic safety net for their families, while one-third (37%) hope to achieve financial independence.
FWD Group, Group Chief Distribution and Proposition Officer, Lee Yen Ho, said, “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. Changing the way people feel about insurance has an important role to play. Insurance provides protection in difficult times, but it can also help to build resilience, secure income for retirement, and give people the confidence they need to celebrate living.”
The findings also reveal clear generational pressures:
- Generation X (born in 1965-1980) face the toughest balancing act – funding education, paying mortgages and preparing for retirement. Among this segment, 62% worry that their savings won’t keep pace with inflation, and 52% rank guaranteed lifelong income as their top retirement need.
- Generation Y (born 1981–1995) juggle multiple financial responsibilities, with 49% worrying about saving for their own retirement. The vast majority (85%) are supporting their parents, in addition to caring for their children. Although almost half (47%) are looking for a single, efficient solution to cover multiple family members, most (61%) have never heard of family insurance plans.
- Generation Z (born 1996–2010) face growing financial pressure, with 53% expecting difficulties in the next five to 10 years due to rising daily expenses, and 46% saying that insurance products feel too expensive.