Prudential Legacy Planning Survey Over 80% of respondents deem legacy planning important 54% yet to realise their aspirations

Prudential Hong Kong Limited (‘Prudential’) today released the findings from its “Legacy Planning Survey”[1], revealing that despite up to 87% of respondents deem legacy planning important, more than half of them (54%) have yet to have a plan in place. Furthermore, a vast majority (76%) of respondents indicate that their wealth has stopped growing or even decreased due to various pandemic and economic situations, while four in five respondents (81%) have changed their wealth management strategies, switching to invest in low-risk and high liquidity products.

54% of respondents yet to live up to their aspiration, with repeated delays in legacy planning

 The survey revealed that up to 87% of respondents deem legacy planning very important or slightly important. The thought of starting legacy planning is often triggered by key life events, particularly childbirth (23%) and retirement (20%), while only 20% of respondents believe the planning should start the earlier the better.

Over half (54%) of respondents have yet to start their legacy planning despite their recognition of such importance, denoting a huge gap between their attitudes and actions. It is worth noting that 14% of respondents find it acceptable to start planning only when they or their family members have an accident, illness or other misfortune. For the minority who deem legacy planning not very important or not important at all (13%), 38% of them want to save the fortune for themselves and 34% think they do not have much wealth.

Priscilla Ng, Chief Marketing & Partnership Distribution Officer, Prudential Hong Kong Limited, said, “According to the survey, we see several misconceptions which may have led people to procrastinate legacy planning. With these insights, we are able to identify their key concerns and support them to progressively realise their life aspirations with solutions best meeting their needs.”

A 77% of respondents incline to pass on their wealth to their families through insurance plans, across all income groups

When polled about the most commonly used services for passing on wealth to family members, 77% of respondents prefer insurance plans, Ng said, “We are pleased to see insurance plans are well received by respondents across all income groups. Owning to its flexibility, high potential for long-term returns, as well as low entry barrier and administrative costs, insurance is an easier option to attain wealth protection, accumulation and inheritance.

“Under the recent challenging economic environment, coupled with the ageing population, increasing medical expenses and rising demand for retirement reserves, comprehensive financial planning can effectively enhance the financial resilience of a family. It not only safeguards wealth but also helps change the traditional perception of ‘wealth never survives three generations.’”

Nearly one-third of respondents saw their wealth dropped by 22% during the pandemic, opting for more conservative investment than last year 

In addition, the survey also found that the pandemic has changed people’s attitudes towards wealth management. 76% of respondents saw no gain in their wealth in the past two years – a phenomenon particularly true for lower household income segment. Another 29% of respondents saw their wealth reduced by 22% on average.

Under the influence of the recent pandemic and economic situation, about one-third (36%) opt for more conservative investment than last year. 81% have their wealth management strategy adjusted, such as investing in low-risk products (35%), reducing investment and holding more cash (27%), and investing in products with higher liquidity (19%).

Market rare “Wealth-Split Option” fulfills legacy planning needs of different families

“As a long-standing trusted insurance partner of Hong Kong families, Prudential is committed to promoting the concept of legacy planning. With our ‘We DO Family’ spirit, we are eager to help establish a safety net for different families and give their loved ones the protection they need through a wide range of wealth products. The newly launched ‘Evergreen Wealth Multi-currency Plan’ is a wealth management and wealth succession plan with multiple options and flexibility. As the family tree grows, customers can exercise the market rare ‘Wealth-Split Option’ to distribute their wealth to different family members,” said Ng.

“Evergreen Wealth Multi-currency Plan” is a whole life Shareholder-backed Participating Plan with 3-year and 5-year premium term choices, offering potential high returns in the long term, as well as life and accidental death cover. It is designed with a variety of thoughtful features, including:

From now till 27 May, customers successfully taking out the “Evergreen Wealth Multi-Currency Plan” can enjoy up to an 18% refund of the first-year annualised premium. For information about the promotional offers, please refer to the terms and conditions on the official website of Prudential Hong Kong Limited.

For more information about the insurance plan, please refer to the terms and conditions on the official website of Prudential Hong Kong Limited.

Disclaimer

Evergreen Wealth Multi-currency Plan is underwritten by Prudential Hong Kong Limited. This document does not contain the full terms and conditions of this plan and is for reference only. You should read carefully the risk disclosures and key exclusions (if any) contained in the product brochure. For further details and the terms and conditions of this plan, customers can ask Prudential for a sample of the policy document. This document is for distribution in Hong Kong only. It is not an offer to sell or solicitation to buy or provide any insurance product outside Hong Kong. Prudential does not offer or sell any insurance product in any jurisdictions outside Hong Kong where such offering or sale of the insurance product is illegal under the laws of such jurisdictions.