AFFLUENTIAL’s newly released study, WealthLens™ 2024, interviewed over 400 High-Net-Worth (HNW—individuals with liquid financial assets exceeding USD 1M) and 200 Very High-Net-Worth (VHNW—individuals with liquid financial assets exceeding USD 5M) individuals across Singapore and Hong Kong to reveal unique perspectives on wealth, priorities, and future plans in two of Asia’s most dynamic cities.
The sample covers a broad wealth spectrum in both cities, whether gained through building owner-managed businesses, establishing successful careers, or inheriting family wealth. As a result, the insights offer a clear perspective across gender, age groups, and other key demographic criteria.
Health and Financial Freedom: The Pillars of Wealth
Health and wellness emerge as the top priority for the wealthy in both cities, closely followed by the desire for financial freedom. However, differing views highlight a nuanced outlook:
- Hong Kong HNWIs are primarily focused on securing a comfortable retirement, driven by a concern for future uncertainties.
- Singapore HNWIs display a more optimistic approach, focusing on leading a comfortable lifestyle, reflecting a more stable outlook.
Despite access to world-class healthcare in both regions, one-third of respondents expressed a preference to seek specialised medical treatment overseas. Notably, in Hong Kong, the fear of covering medical expenses later in life is a major concern.
Global Mobility and Aspirations
HNWIs in both cities are highly mobile, with 40% of Hong Kong and 47% of Singaporean HNWIs planning to move abroad, either temporarily or permanently. However, their motivations differ:
- Hong Kong respondents are motivated by a desire for an improved quality of life.
- Singaporeans seek new cultural experiences and professional development opportunities.
Children’s education also plays a critical role in the lives of the affluent. Over 60% of HNWIs in Singapore and Hong Kong want their children to study overseas, with the UK and USA being the most popular destinations.
Succession Planning is Top of Mind
Succession planning is crucial for the wealthy in both cities, with over 90% of respondents having established plans for passing on their wealth. However, preferences on how this is enacted do differ:
- Hong Kong HNWIs favour the use of trusts.
- Singapore HNWIs prefer to transfer their wealth after death.
Approximately 30% of respondents expect to receive an inheritance within the next decade. Singapore’s affluent plan is to reinvest this inheritance into expanding business ventures, while its Hong Kong counterparts are more focused on improving their lifestyle and personal development.
Savvy Investors with a Focus on Tax Planning
When it comes to managing wealth, HNWIs in both cities exhibit strong investment acumen. Tax planning is important to over 90% of respondents, with around 45% using financial advisors to assist with this process.
Diverse Interests and Philanthropy
Singaporean and Hong Kong HNWIs channel their wealth into a range of passions and interests. Singaporeans show a particular affinity for technology, while Hong Kong’s HNWIs prioritise wealth and wellness. Around 20% of HNWIs in both cities contribute to charitable causes, with Singaporeans favouring healthcare-related initiatives and Hong Kongers showing a stronger interest in educational philanthropy.
About WealthLens™
WealthLens™ is a strategic data and insights program that seeks to understand HNWIs and UHNWIs’ insurance, banking, and wealth management behaviours, identify and profile this core audience and their financial needs, and optimise marketing strategies. Millionaires across key markets who are members of the AFFLUENTIAL LuxeTalk™ community are interviewed yearly to understand their outlook and views on a wide range of topics.