A new report from Quilter International, released today, reveals that close to half (47%) of high net worth individuals (HNWIs) across Hong Kong and Singapore cite a lack of financial knowledge about managing their wealth as one of their greatest concerns.
Despite this, over half (53%) of HNWIs across both regions want to be actively involved in managing their wealth meaning that they are part of the decision-making process and are informed about why actions are being taken rather than actually performing transactions or fund research.
This highlights an opportunity for wealth managers and financial advisers to educate and empower HNWIs so that they can make better informed decisions about their wealth.
This is evidenced by nearly half of Hong Kong HNWIs being concerned that they lack the professional advice they need when it comes to managing their money, this however drops to 34% among Singapore HNWIs.
When it comes to succession planning, Quilter International's research currently shows that HNWIs say the topic of how to transfer wealth to the next generation is first raised by families (43%) and friends (21%). The introduction by families further increases to 56% among beneficiaries.
However, only 30% of HNWIs say they have had discussions which explain why wealth transfer and inheritance plans are important to them and their family. For beneficiaries, this drops to just 16% showing that there is a need for professional advice.
At present, 54% of HNW donors expect the wealth management industry to better educate them on how different wealth solutions and structures can best support the overall wealth transfer process.
Quilter International Singapore CEO, Ian Kloss, commented: "The results of our research highlight that there is a big opportunity for wealth managers and financial advisers to help educate HNWI and demonstrate their competence and technical knowledge in their wealth and succession planning by taking a proactive role."
"HNWIs are understandably interested in being a part of the wealth management decision-making process but are also keen to seek professional advice to help guide their decisions and currently feel they lack access to it."
"One of the problems our research has exposed is that while wealth transfer conversations are happening typically within families, these conversations are failing to reveal how critical it is to get a wealth transfer plan in place. Traditionally, these conversations could be a challenge within most parts of Asia. A mix of perceptions and cultural factors has stifled open discussion between generations."
"Without a good level of financial and technical knowledge or an understanding of why wealth transfer plans are important, HNWIs may be prone to inaction or making the wrong decisions. We believe wealth managers and financial advisers can play a critical role in introducing the topic, exposing its significance and getting families aligned."
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