Families Give Financial Security Top Billing, But Fear Wealth Won’t Endure – Sun Life Asia Study

The report from Sun Life’s Asia business sheds light on how citizens in Singapore, Vietnam, Malaysia, Hong Kong, Indonesia and the Philippines think about the importance of financial security, intergenerational wealth transfer, and more.

A study from Sun Life Asia, part of Sun Life, shows that while
financial security is regarded as a cornerstone for legacy
planning across the region, as many as 60 per cent fear that
their wealth will not last beyond their children’s generation.

Across all the countries surveyed, the survey found that 70 per
cent of respondents said that having protection in place to
ensure their family’s financial security is the most important
factor in legacy planning. This was followed by having a clear
and smoothly-communicated estate plan to reduce confusion or
disputes (53 per cent) and building enough wealth to pass down to
the next generation (48 per cent).

The research, entitled Passing the torch: Building lasting
legacies in Asia, surveyed more than 3,000 respondents
across Hong Kong, Indonesia, Malaysia, the Philippines, Singapore
and Vietnam.

Most respondents prefer the wealth they bequeath to fuel
long-term growth, with 59 per cent wanting their legacy invested
for long-term wealth creation through financial assets, life
insurance or the family business. 

For the region, 60 per cent fear that their wealth won’t last
beyond their children’s generation. 

Concerns are most pronounced among the affluent, with 28 per cent
describing themselves as“very concerned” about wealth
preservation, highlighting that greater wealth often brings
greater responsibility and considerably higher stakes.

“We are seeing a clear shift in how families define legacy – from
wealth alone to a combination of financial security, education
and purposeful living for future generations,” David Broom, chief
client and distribution officer at Sun Life, said. “While the
survey indicates a gap between intent and action, this highlights
the need for proactive planning, professional guidance and open
family dialogue to ensure both assets and values are preserved.”

In other findings, the survey showed that many legacy discussions
lack structure. Some (44 per cent) of legacy planning
conversations are currently informal or casual, but this does not
seem to be the preferred option, with just 27 per cent of
respondents stating this as the best setting.