A recent Financial Wellbeing Tracker survey by Prudential has shown a rise in financial confidence among Hong Kong residents, although concerns about long-term savings and wealth transfer persist.
The overall financial wellbeing index reached 58.0 out of 100 this year, up from 53.1 in the previous survey. The study measured financial security and freedom both in the present and future.
The survey revealed differences in financial confidence across age groups. Respondents aged 18 to 35 had the highest score at 62.7, while those aged 36 to 49 scored 57.2. The score dropped further to 53.5 for individuals aged 50 to 60.
Younger respondents reported a stronger sense of current financial freedom, while older individuals appeared more cautious in their financial outlook.
A key focus of the study was the financial preparedness of parents with children from Generation Alpha – those born between 2010 and 2024.
About 58% of surveyed parents expect to provide financial support to their children regularly or occasionally, with 94% believing they will need to support them until at least age 25.
However, only 37% have started saving specifically for their children’s future needs.
Nearly three-quarters (74%) of parents stated that they encourage their children’s personal interests, and 73% said they support their children in staying true to their aspirations.
While 48% of parents indicated they have a plan to support their children’s growth and education, only 33% have acted on those plans, while 18% have yet to start planning.
Despite many parents’ intentions to pass down family wealth, there are gaps in planning for long-term financial security.
Around 62% of parents expect to pass on family savings, but 63% believe the wealth will last only two generations, while 33% expect it to extend to three generations.
Although trusts can be an effective tool for preserving wealth, only 13% of surveyed parents reported having a strong understanding of how they work.
Felix Fung (pictured), chief product officer at Prudential Hong Kong, commented on the findings, urging Gen Alpha parents to think beyond just providing for their children and consider how to empower them with all-round support.
“Our findings highlight a gap between how Gen Alpha parents think about wealth transfer and their actual use of suitable tools, suggesting they need to enhance their financial literacy and plan to ensure effective wealth succession,” he said.
In response to these concerns, Prudential Hong Kong has introduced the Entrust Multi-Currency Plan, designed to provide flexible financial planning solutions with elements similar to a trust. The plan includes:
A promotional offer is available until Mar. 14, 2025, allowing eligible customers to receive rewards of up to 63% of their first-year premium.
