Financial Security Beyond Wealth: Insights from Sun Life Indonesia's 2025 Study

The Vulnerability Gap Among Affluent Families

A recent study by Sun Life Indonesia reveals a significant 'vulnerability gap' among Indonesia's affluent families. While 71% of families aspire to build wealth, many are unprepared for complex financial risks. This gap exists because financial security is often mistakenly equated with having high-value assets like luxury homes and cars.

Key Factors Contributing to Financial Vulnerability

1. High Cost of Living: Affluent families typically maintain a high standard of living, including premium school fees, large asset installments, regular travel, and lifestyle maintenance. These expenses necessitate proportional emergency funds and financial protection.
2. Illiquid Assets: Many families have significant wealth tied up in illiquid assets such as property or business investments, which can be challenging to liquidate quickly during financial emergencies.
3. Single Income Source: Often, family finances rely heavily on a single income earner without a backup plan for income replacement, increasing vulnerability to financial shocks.

Implications for Financial Planning

The study emphasizes that achieving financial security requires more than just accumulating wealth. It necessitates a comprehensive financial plan that includes:

• Maintaining emergency funds proportional to their lifestyle
• Adequate financial protection against unforeseen events
• Diversifying assets to include more liquid options
• Developing income replacement strategies

By addressing these aspects, families can better safeguard their financial well-being against potential risks and uncertainties.