Only 10% of Hongkongers ready for wealth transfer despite 85% planning to pass on assets: survey
A Sun Life Asia survey finds only 10% of Hong Kong respondents have fully developed legacy plans, despite 85% intending to transfer wealth. Many worry about heirs' financial skills and assets not lasting, though use of professional advisors has surged.
While 85 per cent of Hong Kong respondents intend to pass on financial assets or wealth, only 10 per cent have fully developed their legacy plans and discussed them with their heirs, according to a Sun Life Asia survey released on Thursday. The findings expose a significant gap between intention and action among families in the city.
The proportion of respondents with no legacy plan at all dropped from 49 per cent last year to 29 per cent. Even so, 45 per cent have only partially completed their arrangements, underscoring that many families still have room to improve when it comes to putting concrete arrangements in place and discussing them with the next generation, the survey noted.
Among the concerns cited by respondents, 34 per cent worry about poor investment decisions by their heirs, 32 per cent fear overspending, and 27 per cent cite a lack of confidence among younger generations in managing inherited wealth. These findings highlight that fostering financial literacy and wealth management skills has become a critical part of preparing the next generation.
The legacy readiness gap is even more pronounced among family businesses. Among those intending to pass on wealth, 78 per cent worry that their assets may not endure to the next generation, compared with 63 per cent of non-family business respondents.
Hong Kong families are adopting more structured approaches to discussing transfer arrangements. The survey found that 67 per cent of respondents said older family members have communicated at least some aspects of their legacy plans, primarily through family meetings at 42 per cent and one-on-one conversations at 40 per cent. An increasing number of families are turning to professional advisors to facilitate these critical discussions, with the proportion utilising financial advisors to communicate succession plans surging from 11 per cent in the previous year to 39 per cent this year.
