The six-month breaking point: are you actually prepared for the unforeseen?

The industry benchmark for financial resilience is six months, the point at which most households would start to buckle if income suddenly stopped. According to Sun Life Asia’s Financial Resilience Index, 61 per cent of Singapore households are already struggling to cope beyond that mark. And 81 per cent say inflation has made it harder to cover monthly expenses. The numbers are uncomfortable, and they raise a more uncomfortable question: is six months even enough anymore?

In this episode of Money Hacks, a podcast by The Business Times, Howie Lim speaks with David Broom, chief client and distribution officer at Sun Life Asia, to work through what financial resilience actually means in practice and why so many households are stuck in short-term survival mode. Broom offers genuine insight about the steps to get out of it.

Why listen

• Why drawing down on savings is the most dangerous first response to financial pressure  Broom explains why this instinct, understandable as it is, compounds the problem rather than solving it.

• Why Singapore’s safe haven reputation may be creating a false sense of security Singapore has more households in the low resilience segment than Indonesia or Vietnam. Broom unpacks what that means and why awareness alone is not closing the gap.

• What separates a resilient household from one stuck in survival mode  Broom points to one non-monetary habit that consistently makes the difference, and the data behind it is striking.

• Where to start if you are not prepared and do not know where to begin  Broom’s answer is specific, practical and takes fifteen minutes.

The plan does not have to be perfect but not having one at all is the real risk. Listen now.

Discover more episodes at bt.sg/podcasts. Got feedback? Email us at btpodcasts@sph.com.sg.

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Written and hosted by: Howie Lim (howielim@sph.com.sg)

With David Broom, chief client and distribution officer, Sun Life Asia

Edited by: Howie Lim & Claressa Monteiro

Produced by: Howie Lim & Chai Pei Chieh

A podcast by BT Podcasts, The Business Times, SPH Media

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