Sun Life Survey Reveals Women In Indonesia Are Safer Financially, But Challenges Still Exist

Photo: Doc. Sun Life

JAKARTA - Women in Indonesia have made significant progress in terms of financial security, but still face various challenges in managing their wealth and financial planning.

According to a recent Sun Life Asia survey entitled Women's Wealth in Focus: Building Confidence and Security, the majority of Indonesian women feel an increase in their financial welfare compared to the previous generation. However, financial pressure from family responsibilities and lack of access to appropriate financial products is still a major obstacle.

More than three-quarters (78 percent) of women in Indonesia feel that their financial condition is better than when their mother was their age. However, the financial burden that arises from multi-generational responsibilities remains a major challenge.

As many as 32 percent of mothers report stress due to having to regulate the needs of their children and parents simultaneously, reflecting significant financial responsibility in the family. Although 65 percent of women have saved for the treatment of their elderly parents, only 11 percent expect full support from their children in the future.

This shows the desire of women to build financial resilience independently without having to rely on the next generation.

Health problems are the dominant factor affecting women's financial decisions, with 59 percent calling them the main triggers in making major decisions, followed by house purchases (46 percent) and significant changes in revenue (38 percent).

Lack of financial literacy is a big obstacle for a brighter financial future for more than half of respondents (56 percent). Other obstacles include women's income which is often lower than men in the same profession (45 percent) and high health costs (43 percent).

For mothers, their main financial aspiration is to ensure long-term security. The most common goal includes saving for children's education (69 percent), building emergency funds (53 percent), and teaching financial literacy and the concept of investing in their children (50 percent).

When asked about the meaning of financial security, most women say they have sufficient savings for unexpected expenses (74 percent), are free from debt (68 percent), and have a stable passive income (48 percent).

Women in Indonesia continue to strive to balance their financial needs with family responsibilities. As many as two-thirds (66 percent) of women routinely prioritize the financial needs of family members, such as elderly relatives and children, compared to their own personal needs.

More than three-quarters (78 percent) of women sacrifice personal medical treatment, including routine care such as dental examinations and annual health checks, to finance their family's treatment.

Nearly half (44 percent) women rate their knowledge of financial products and investment as a basic or beginner level. Although the majority are able to mention current pension balances (75 percent), the average annual investment returns (65 percent), and the latest interest rates in Indonesia (59 percent), there are still gaps in their financial understanding.

As many as 64 percent of women on mortgages cannot estimate the remaining balance of their debts, and 35 percent are unable to state the average annual outcome of their investments. More than half (54 percent) women face challenges in finding financial products that suit their unique needs. When seeking financial advice, nearly two-thirds (63 percent) prefer to consult with women's financial advisors.

Elin Waty, President Commissioner of Sun Life Indonesia, said that women in Indonesia face complex challenges in achieving financial stability.

Our survey found that more than half of (54 percent) women had difficulty finding financial products that matched their unique needs. Sun Life is committed to providing education and access to products that are not only inclusive, but are also able to support long-term financial planning, especially for women who want to save for children's education, build emergency funds, and plan a safer future, "he said, in a written statement, Monday, March 10.

Kah Jing Lee, Chief Client Officer of Sun Life Indonesia, added that this survey underscores that women in Indonesia are increasingly confident in managing their finances, but still face challenges in finding solutions that suit their specific needs.

"We at Sun Life are committed to presenting more personal products and services and supporting women's financial journey with flexible and innovative solutions," he explained.

Sun Life is committed to providing insurance and investment products specifically designed to meet women's needs at every stage of their lives.