HSBC: Most Asian HNWIs Have No Legacy Plan in Place
The majority of Asian high net worth individuals have no legacy plans ready, especially those in Greater China, according to an HSBC Life report, exposing significant amounts of wealth to vulnerabilities.
Nearly six out of 10 high net worth individuals (HNWI) in Asia have no legacy plan in place, according to a report by HSBC Life. HNWIs in Greater China were the least prepared, including those in Taiwan (only 24 percent have a formal legacy plan), Hong Kong (26 percent) and mainland China (36 percent). Southeast Asia fared better, with Thailand (57 percent) being the leader out of all the markets surveyed.
Interestingly, economic or financial market volatility was cited as the key driver to drive legacy plans forward, as agreed by 45 percent of respondents, rather than traditional factors like age or lifestyle milestones.
Life Insurance is the Preferred Solution
Life insurance was named as the top legacy solution (87 percent), surpassing other options like wills (82 percent) or family trusts (76 percent).
«Our surveyed HNWIs are not just inadequately futureproofing their wealth but also missing out on potential wealth diversification and upside,» remarked Edward Moncreiffe, CEO insurance at HSBC Group.
The report was based on a survey of 900 respondents across nine markets in Asia and the Middle East, including Taiwan, Hong Kong, mainland China, Singapore, Indonesia, Malaysia, Thailand, India and the UAE.
