Sun Life: Singapore HNWIs Worry Wealth Won’t Last
Singaporean millionaires are concerned about the ability of their next generation heirs to preserve the wealth they pass down, according to a Sun Life survey.
More than two-thirds of high net worth individuals (HNWI) in Singapore fear that their wealth won’t be preserved beyond their children’s generation, according to a Sun Life survey entitled «Enduring legacies: A look at Singapore's next generation of wealth».
Concerns cited include the worry that heirs are not financially equipped to manage inherited assets (75 percent), conflict over the assets (59 percent) and market volatility affecting asset value (53 percent). Only 50 percent of Singapore HNWIs are confident their children will uphold their wishes around wealth transfer, asset preservation and growth for generations to come.
Long-term wealth creation (61 percent), philanthropy (58 percent) and supporting family needs (56 percent) were named as the leading financial legacy goals.
Lack of Planning
Despite the issues, many remain unready. Only 43 percent feel fully prepared in terms of legacy arrangements if they were to pass away today. 25 percent have completed and communicated their legacy plans, while 35 percent have only partial plans and 17 percent admit to having nothing at all.
Respondents said that obstacles to legacy planning include legal and tax complexities (37 percent), lack of professional guidance (36 percent), difficulty talking about death or money with the family (35 percent) and generational differences in values (34 percent). 45 percent of conversations are informal or casual, with only 34 percent considering this the most effective approach.
«Affluent families in Singapore are talking about succession planning, which is a great start, but we are seeing a lack of implementation. The survey indicates a gap between intent and action, highlighting the need for proactive planning, professional guidance and open family dialogue to ensure both assets and values are preserved,» commented Christopher Albrecht, CEO of Sun Life Singapore.
The survey is part of a broader report involving 3,000 respondents across Singapore, Hong Kong, Indonesia, Malaysia, the Philippines, and Vietnam, focusing on the attitudes, behaviors and aspirations around legacy planning in Asia.
