Singapore, 8 March 2021 –They may have a personal wealth1 of at least S$2 million in assets but nearly one in two (44 per cent) high net worth women in Singapore (“HNW”) do not feel confident about their financial future. Women aged between 45 and 49 (54 per cent) have the least confidence.
This is according to a survey commissioned by Prudential Singapore (“Prudential”) that 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 million2.
Close to half (48 per cent) of the 250 respondents said an inadequate knowledge of wealth management is a key factor fueling their financial insecurity. The other concerns highlighted by the respondents were the fear of their investments failing (44 per cent) as well as rising medical expenses and potential income loss due to health-related issues (43 per cent)3.
The COVID-19 outbreak has further impacted confidence. Since the pandemic, nearly 8 in 10 respondents (79 per cent) said that they have become more cautious when it comes to making investments, and more than 6 in 10 (64 per cent) find that their tolerance for risk has lowered.
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.
“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,” said Ms Alexander.
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 per cent 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.
Since the pandemic hit, nearly 8 in 10 (76 per cent) HNW women have begun reviewing their financial plans with wealth managers, asset managers and insurance specialists. Additionally, 6 in 10 (61 per cent) are looking to insurance as a means to plan for their retirement.
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.
Notes to the editor:
About the study:
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.
About Opus by Prudential:
Press release: https://www.prudential.com.sg/company/newsroom/2019/20190306.
About Prudential Assurance Company Singapore (Pte) Ltd (Prudential Singapore)
Prudential Assurance Company Singapore (Pte) Ltd is one of the top life insurance companies in Singapore, serving the financial and protection needs of the country’s citizens for 89 years. The company has an AA- Financial Strength Rating from leading credit rating agency Standard & Poor’s, with S$43.1 billion funds under management as at 31 December 2019. It delivers a suite of well-rounded product offerings in Protection, Savings and Investment through multiple distribution channels including a network of more than 5,000 financial consultants.
1Defined as the total value of savings (e.g. cash and deposits in personal accounts, pension etc.) and investments (e.g. equities, funds, stocks, shares, and properties). Note: primary residence and motor vehicles excluded.
2Information obtained from Aon’s Client Insight APAC Market Sizing Model and Report dated January 2021; information is accurate as of 31 December 2020.
3Refers to personal or family medical expenses as well as the loss of ability, time and energy to generate further income as a result of health issues.