They may have a personal wealth of at least S$2 million (US$1.48 million) in assets, but 44% of high net worth women in Singapore do not feel confident about their financial future, according to a survey commissioned by Prudential Singapore.
The survey explores how the growing number of HNW women in Singapore approach wealth planning.
Singapore has more than 34,000 HNW women with investable assets of at least S$2 million, according to Aon’s Client Insight APAC Market Sizing Model and Report dated January 2021.
The findings of the survey include:
- Close to half (48%) said an inadequate knowledge of wealth management is a key factor fueling their financial insecurity.
- Fear of their investments failing (44%).
- Rising medical expenses and potential income loss due to health-related issues (43%).
- Women aged between 45 and 49 (54%) have the least confidence.
The COVID-19 outbreak has further impacted confidence. Since the pandemic, nearly 8 in 10 respondents (79%) said that they have become more cautious when it comes to making investments, and more than 6 in 10 (64%) find that their tolerance for risk has lowered.
Read also: Asia takes more control of health and retirement amid Covid-19 - Manulife survey
Findings validate trends observed
The findings validate trends that Prudential has observed among its HNW female clients, who make up nearly half of its Opus customer base, said Ms Angeline Alexander, Head of High Net Worth and Affluent Customer Segments, Prudential Singapore. Opus is Prudential’s dedicated offering for HNW individuals.
Ms Angeline Alexander (Credit: Prudential Singapore)
She said: “We have found that our female high net worth clients have a strong interest in acquiring knowledge about wealth accumulation and transfer. As such, we will focus on delivering targeted programmes for our female clients this year to help them meet their financial goals, in addition to the wealth and legacy planning events that we have been offering to all of our Opus customers.
“With rising lifespans, and women living longer than men in general, we want to support our female clients in planning better for their retirement so they can enjoy the possibilities that a longer life presents.”
High net worth women are countering insecurity with constructive action
HNW women are taking proactive steps to secure their financial future. The women surveyed have set an ambitious target of accumulating five times their current wealth ahead of retirement.
“While wealth creation is important, it is equally critical to preserve what you amass. The survey has found that only 24% of the respondents are fully focused on wealth preservation. By placing more emphasis on protecting wealth, and doing so early in one’s life, we can safeguard our hard-earned savings from unforeseen risks.
“The unprecedented COVID-19 outbreak has raised awareness of wealth protection. In particular, we are seeing an increase in demand for health insurance solutions as many are starting to recognise the impact that healthcare costs can have on their wealth and retirement goals,” added Ms Alexander.
Read: Selflessness in times of need - Assets Prestige Alliance
Since the pandemic hit, nearly 76% of HNW women have begun reviewing their financial plans with wealth managers, asset managers and insurance specialists. Additionally, 61% are looking to insurance as a means to plan for their retirement.
The findings reflect the attitudes of 250 high net worth women in Singapore aged 35 and above who were surveyed for a study commissioned by Prudential Singapore and researched by Aon Solutions Singapore.
Prudential has been serving Singapore’s HNW population through Opus by Prudential, since 2018. The offering, which was launched to address the unfulfilled wealth protection and transfer needs of HNW individuals, has today grown to comprise a team of over 100 Private Wealth Consultants, wealth planners, a reputed panel of external subject-matter experts and a dedicated servicing team.
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