Sun Life Survey: Rising Cost-of-Living Weighs on Hong Kong Households, Weakening Financial Resilience

• Over half (51%) say they could not financially sustain themselves for more than six months without income or external support.
• Respondents most impacted by rising grocery and food costs (91%), followed by utilities such as electricity and water (88%) and healthcare (87%).
• Nearly one-third (29%) are reducing or skipping essential spending to cope with rising costs, and about one-fifth (21%) are drawing on accumulated savings.
• Only 23% remain highly resilient as inflation continues to reshape financial priorities and limit long-term planning

(Hong Kong, 23 June 2026) Financial resilience in Hong Kong is under growing strain as persistent inflation and rising living costs place more Hong Kong households under increasing pressures, while leaving them less prepared for the future, according to the third Financial Resilience Index[1]: Asia navigates rising costs (the “survey”) released by Sun Life Asia.

The findings show a clear decline in financial resilience: the proportion of highly resilient consumers has fallen to 23%, down from 30% a year ago. Confidence also remains low, with only 13% (vs. 18% in 2025) of respondents feeling very financially secure. Meanwhile, over half (51%) lack sufficient financial buffers to sustain themselves for more than six months without income or external support.

Rising costs of living emerges as the defining financial pressure

Rising living costs have become the dominant force shaping household finances in Hong Kong, with nearly seven in ten respondents (68%) saying inflation has made it harder to meet monthly expense. For 30% of respondents, cost of living is the single biggest barrier to taking greater control of their finances, surpassing concerns such as unstable income or limited financial knowledge.

Essential expenses are driving the squeeze, with 91% impacted by grocery costs, followed by utilities (88%) and healthcare (87%), putting sustained pressure on household budgets. As a result, 57% now prioritize day-to-day expenses, ahead of saving, investing and long-term planning over the next 12 months.

Households are increasingly making difficult trade-offs to cope with rising costs. Nearly three in ten (29%) are reducing or skipping essential spending, and more than one-fifth (21%) are drawing on accumulated savings, suggesting that short-term pressure is coming at the expense of long-term financial stability.

Christine Yeung, Deputy Chief Executive Officer, Life and Health at Sun Life Hong Kong, said: “People in Hong Kong are feeling the squeeze from rising living costs. As a result, households are often forced to choose between spending today and saving for the future, or sometimes even cutting back on retirement savings. If this trend persists, it could further weaken their ability to cope with future challenges. Building a solid financial foundation means staying disciplined with finances, even in uncertain times, and setting aside enough savings for unexpected events. This enables individuals to stay flexible in times of change while remaining on track to achieve their long-term goals. “

Financial resilience declines as most people lack buffers beyond six months

The results point to a clear shift where more households are moving away from stronger buffers as everyday costs keep rising. Compared with the last survey, high financial resilience fell from 30% to 23%, while moderate resilience increased from 60% to 67%. Low resilience also edged up from 10% to 11%, indicating a gradual shift toward less protection against unexpected shocks. Financial confidence has weakened further, with those reporting a high level of financial security has fallen from 58% to 51%.

Notably, respondents understand what financial security requires: 71% say sufficient savings are a key foundation. However, preparedness lags behind awareness, with half (51%) saying they could not sustain themselves for more than six months without income or external support. This gap suggests many households may struggle to stay on track if disruptions such as job loss or illness occur.

Long-term financial planning takes a back seat amid rising costs

As respondents focus on managing immediate costs with household finances and savings buffers erode, long-term financial planning is often delayed. Over the next 12 months, managing day-to-day expenses is the top priority at 57% of respondents, well ahead of saving for retirement (28%) and paying for personal healthcare (24%).

Many recognize that building savings (58%) and investing regularly (51%) are among the most effective ways to improve their finances, but structured action remains limited. Nearly half of respondents (47%) have no financial, or they only plan for up to one year ahead. Confidence in managing long-term financial goals has also dropped, from 61% to 50% year-on-year.

Financial literacy plays a pivotal role in building resilience

Financial literacy is strongly linked to resilience: respondents with higher financial knowledge are 35 percentage points more likely to feel optimistic about their financial situation. Meanwhile, the way Hong Kongers seek information is evolving: 57% use Gen AI at least occasionally for “financial advice”, and 54% expect to use it more in the next 12 months.

Yet the findings also make clear that technology does not fully replace trust and clarity. For more complex financial decisions, human support remains highly valued, with the greatest importance placed on personalized recommendations (53%), clear explanations (49%), and after-sales support (48%).

Christine Yeung added: “While financial information is more accessible than ever, making the right decisions has not become easier. This highlights the need for financial literacy and trusted advice.  At Sun Life, we bring together expert financial advice and innovative solutions to help Clients navigate a fast-changing environment, giving them greater clarity and confidence to balance their immediate needs with long-term goals.”

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About Sun Life

Sun Life is a leading international financial services organisation providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the U.S., the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of 31 March 2026, Sun Life had total assets under management of $1.58 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF. Sun Life Financial Inc. is the holding company of Sun Life Assurance Company of Canada. Sun Life Hong Kong Limited (incorporated in Bermuda with limited liability) is a wholly owned subsidiary of Sun Life Assurance Company of Canada and operates in Hong Kong.