Wealth Expectancy Report

By Author: Mr. VIPIN AGRAWAL (MENTit Both)
Affiliation:

The company which did the research report - Standard Chartered

About the company - Standard Chartered plc is a British multinational banking and financial services company headquartered in London, England. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority.

Area of research - Monthly consumable wealth expectancy

Name of the organization which did the survey - Standard Chartered

Participants of the survey - The Standard Chartered Wealth Expectancy Report 2019 reveals the wealth expectancy of 1,000 wealth creators in 10 markets across Asia, Africa and the Middle East: China, Hong Kong, India, Kenya, Malaysia, Pakistan, Singapore, South Korea, Taiwan and the UAE. In each market, we focus on three groups: the emerging affluent, the affluent and high net worth individuals (HNWIs).

When was the research survey done - 2019

Main points of discussion in the survey:

The wealth expectancy gap
The digital difference
Make your money work harder
Market profiles

Findings of the survey:

The wealth expectancy gap-
1. Most wealth creators will be disappointed by the value they are set to accumulate at their peak wealth, with nearly six out of 10 individuals (56 per cent) at least 50% away from being able to achieve their wealth aspiration by living off the personal assets they have accumulated as well as monthly statutory pension payments.
2. Among the emerging affluent: 62% of wealth creators in this group will be at least 5% away from their aspiration. This compares to 53 per cent of the affluent and just 46 per cent of HNWIs.
3. China and Malaysia have the smallest gaps, with around two-thirds of wealth creators (70% and 64% respectively) set to achieve more than half of their wealth aspiration. Wealth creators in South Korea and Taiwan have the furthest to go to close their wealth expectancy gap, with only 20% of South Koreans and 25% of Taiwanese achieving more than half of their aspiration.

High earnings are no guarantee of a smaller wealth expectancy gap.
With 56% of savers in our study looking set to be disappointed with their financial situation when it comes to retirement, the time to take action is now (investing for your future is key).
The digital difference-
1. Two in five (40%) use their bank’s website or mobile app while online investment portfolio apps, online-only banks and online stockbrokers are each used by one third (33%) to help them meet their financial goals.
2. Older age groups are almost as likely as younger groups to use social trading to achieve their financial goals.
3. 61% of wealth creators believe being able to manage their investment products online has given them the confidence to invest in products that they would not have considered previously.

Insurance solutions, such as annuities and endowments are a popular way to preserve and grow wealth.
Diversified investment portfolios boost returns.
China: Making money work hard
1. The average life expectancy at peak wealth (age 60) is 22 years for China’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 14 years Affluent: 15 years HNWI: 36 years)
2. Funding their children’s education, investing in property and going on vacation are the most common aims respectively.
3. The financial products China’s wealth creators favour to achieve their goals combine simple savings products with a longer-term. (The average, lower-risk investments.)
4. 92% of China’s wealth creators are happy or very happy with their quality of life given their current wealth.
5. Seven in 10 of all Chinese wealth creators (70%) will be within 50 per cent of their wealth aspiration, while only one in 10 (10%) will be more than 80% away from their aspirations.
6. The average wealth expectancy of China’s wealth creators is USD 2,172,000 (USD 595,000 for the emerging affluent, USD 998,000 for the affluent and USD 4,922,000 for HNWIs).

Hong Kong: Investment for the betterment
1. The average wealth expectancy of Hong Kong’s wealth creators is USD 2,497,000 (USD 770,000 for the emerging affluent, USD 1,274,000 for the affluent and USD 5,447,000 for HNWIs).
2. The average life expectancy at peak wealth (age 60) is 30 years for Hong Kong’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 10 years Affluent: 10 years HNWI: 15 years)
3. Saving for their retirement, funding their children’s education, investing in property and going on vacation are the most common aims respectively.
4. The financial products Hong Kong’s wealth creators favour to achieve their goals combine simple savings products with investment in stocks and shares.
5. A quarter of Hong Kong’s emerging affluent wealth creators believe that investment is the best strategy for increasing their wealth in order to enhance their quality of life, rising to 28% in the affluent group.
6. Open markets, a highly skilled workforce, and high-tech infrastructure have long made Hong Kong attractive for global investors. It is one of the most prosperous markets in the world, which is reflected in its high wealth expectancy.

India: Future-focused finance
1. The average wealth expectancy of India’s wealth creators is USD 518,000 (USD 195,000 for the emerging affluent, USD 374,000 for the affluent and USD 986,000 for HNWIs).
2. The average life expectancy at peak wealth (age 60) is 23 years for India’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 6 years Affluent: 9 years HNWI: 5 years)
3. Funding their children’s education, establishing or funding their own business, investing in property and supporting parents or relatives are the most common aims respectively.
4. The financial products India’s wealth creators favour to achieve their goals comprise simple savings products, investment products and property investment.
5. Indian wealth creators have a relatively small wealth expectancy, including a low level of statutory pensions, resulting in a large wealth expectancy gap: only 32% will achieve more than half of their aspirations, and 68% will be less than halfway there.
6. 62% of Indian wealth creators are worried about how the next generation will manage and preserve the wealth they pass on, despite 80% having comprehensive wealth transfer strategies in place.
7. 77% of Indian wealth creators believe money is essential to happiness, more than in any other market in our study.
8. 64% of the affluent group say they worry so much about money that it affects their health and 62% of the emerging affluent feel so overwhelmed by financial planning they fail to put a plan in place at all.
9. Nearly three-quarters (73%) of the emerging affluent would be open to using a range of investment products if they had a better level of financial knowledge.

Kenya: Kenya - Preneurs
1. The average wealth expectancy of Kenya’s wealth creators is USD 636,000 (USD 453,000 for the emerging affluent, USD 684,000 for the affluent and USD 772,000 for HNWIs).
2. Quality future life expectancy at peak wealth (age 60) is 20 years for Kenya’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 6 years Affluent: 8 years HNWI: 5 years)
3. Funding their children’s education, buying land, establishing or funding their own business and investing in property are the most common aims respectively.
4. The financial products Kenya’s wealth creators favour to achieve their goals combine simple savings products with property investment.
5. Starting or funding a business is a top financial goal for nearly 3 in 10 Kenyans
6. 66% of Kenya’s wealth creators will achieve less than half of their wealth aspiration, compared with 56% for all markets in our study.
7. Nearly six out of 10 (58%) Kenyans say they want to invest more but they lack access to financial advice.
8. Almost a third of Kenya’s wealth creators (32%) will be more than 80% away from their aspirations
9. This thriving culture of entrepreneurship may be boosting Kenyans’ prosperity levels, but many wealth creators still need to make changes to their financial habits to achieve their personal wealth goals.

Malaysia: A family affair
1. The average wealth expectancy of Malaysia’s wealth creators is USD 1,035,000 (USD 331,000 for the emerging affluent, USD 435,000 for the affluent and USD 2,337,000 for HNWIs).
2. The average life expectancy at peak wealth (age 60) is 23 years for Malaysia’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 15 years Affluent: 18 years HNWI: 25 years)
3. Funding their children’s education, investing in property, saving for retirement and establishing or funding their own business are the most common aims respectively.
4. The financial products Malaysia’s wealth creators favour to achieve their goals combine simple savings products with property investment.
5. Malaysian wealth creators are more likely than those in any other market to believe that spending time with friends and family is the most important factor for a good quality of life.
6. Malaysia’s wealth expectancy gap is one of the smallest across the 10 markets we studied: 64% will achieve more than half of their wealth aspiration.
7. More than half (57%) of Malaysia’s emerging affluent are concerned their children will not know how to manage the wealth they inherit.

Pakistan: Family, friends and finance
1. The average wealth expectancy of Pakistan’s wealth creators is USD 428,000 (USD 331,000 for the emerging affluent, USD 496,000 for the affluent and USD 458,000 for HNWIs).
2. The average life expectancy at peak wealth (age 60) is 22 years for Pakistan’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 13 years Affluent: 11 years HNWI: 5 years)
3. Funding their children’s education, supporting their parents or relatives financially and investing in property are the most common aims respectively.
4. The financial products Pakistan’s wealth creators favour to achieve their goals combine simple savings products with buying property.
5. The wealth expectancy gap of Pakistanis is smaller than the average in the study: around a third (35 per cent) will be within 20% of their wealth aspiration target and a relatively low proportion (26%) will fall short of their aspirations by more than 80%.
6. Around two-fifths (39%) of Pakistan’s wealth creators also consider spending time with friends and family to be essential to a good quality of life, and nearly a third (31%) value giving back to their local community through charitable donations and volunteering.
7. More than half (51%) of Pakistan’s wealth creators consider property one of the best ways to invest their money, while less than a third (31%) invest in stocks and shares

Singapore: Two sides of a coin
1. The average wealth expectancy of Singapore’s wealth creators is USD 2,406,000 (USD 622,000 for the emerging affluent, USD 1,932,000 for the affluent and USD 4,664,000 for HNWIs).
2. The average life expectancy at peak wealth (age 60) is 31 years for Singapore’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 19 years Affluent: 16 years HNWI: 19 years)
3. Funding their children’s education, saving for retirement and investing in property are the most common aims respectively.
4. The financial products Singapore’s wealth creators favour to achieve their goals combine simple savings products with property investment.
5. Singapore’s wealth expectancy gap – half of the wealth creators (52%) will achieve more than half of their aspirations, placing the city-state above our study’s average of 44 per cent.
6. 47% don’t feel sure of the best approach to take when it comes to transferring wealth to the next generation.

South Korea: Treading with caution
1. The average wealth expectancy of South Korea’s wealth creators is USD 1,403,000 (USD 404,000 for the emerging affluent, USD 819,000 for the affluent and USD 2,986,000 for HNWIs).
2. The average life expectancy at peak wealth (age 60) is 29 years for South Korea’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 7 years Affluent: 9 years HNWI: 16 years)
3. Funding their children’s education, investing in land and property and saving for retirement are the most common aims respectively.
4. The financial products South Korea’s wealth creators favour to achieve their goals combine simple savings products with property investment.
5. South Korean wealth creators are happy with their current levels of wealth, with 84% saying they are happy or very happy with the quality of life their wealth provides.
6. Combined with South Korea’s high cost of living and demand for luxury goods, this may explain why its Wealth Expectancy gap is the largest in the study.

Taiwan: Ready, steady, invest
1. The average wealth expectancy of Taiwan’s wealth creators is USD 877,000 (USD 403,000 for the emerging affluent, USD 696,000 for the affluent and USD 1,532,000 for HNWIs).
2. The average life expectancy at peak wealth (age 60) is 30 years for Taiwan’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 9 years Affluent: 8 years HNWI: 11 years)
3. Saving for retirement, going on vacation and funding their children’s education are the most common aims respectively.
4. The financial products Taiwan’s wealth creators favour to achieve their goals combine simple savings products with stocks and shares.
5. Among those with a financial plan in place, just 53% make use of investment products.
6. Just over two-fifths (41%) of Taiwan’s wealth creators make investments through online stockbrokers, higher than the global average (33%).
7. Taiwan’s wealth creators are among the least likely of any market to use websites (28%), online-only banks (30%) or wealth management apps (26%) in their financial planning.
8. Women, in particular, are reaping the rewards, with female wealth creators more likely than their male counterparts to be more than 50% of the way to their wealth aspiration.
9. The wealth expectancy gap for wealth creators in Taiwan is larger than in most other markets in this study: only a quarter (25%) of wealth creators will be within 50% of hitting their wealth aspiration at peak wealth.
10. Unlike most other markets in this study, Taiwan’s wealth creators consider vacations a top financial priority. 3in 10 prioritise holidays, more than in any other market.

The UAE: Right here, right now
1. The average wealth expectancy of the UAE’s wealth creators is USD 864,000 (USD 391,000 for the emerging affluent, USD 922,000 for the affluent and USD 1,278,000 for HNWIs).
2. The average life expectancy at peak wealth (age 60) is 23 years for the UAE’s wealth creators. But how long will their current wealth expectancy fund the retirement lifestyle they aspire to? (Emerging affluent: 11 years Affluent: 13 years HNWI: 13 years)
3. Funding their children’s education, investing in land and property and establishing or funding their own business are the most common aims respectively.
4. The financial products the UAE’s wealth creators favour to achieve their goals combine simple savings products with property investment.
5. The UAE’s wealth creators have one of the lowest wealth expectancy gaps in our study: close to 6 in 10 (56%) will achieve more than half of their aspirations.
6. The UAE’s wealth creators regard financial security as critical to the future-focused business-oriented quality of life and happiness, but also tend to focus on living in the here and now.
7. Individuals in the affluent group, in particular, prefer to live in the moment (51%) rather than worry about their financial future.
8. Within the emerging affluent group, those who don’t use any investment products say they prefer to focus on short-term goals rather than having money tied up in investments (53%).

Questions :

The report was done by?
1. Standard chartered
2. Global markets
3. Societe generale
4. Synchrony
What is the title of the study report?
1. 5 ways of achieving financial goals
2. Wealth expectancy report
3. Technologies impacting retail
4. Digital study recap
What kind of service is provided by Synchrony?
1. Auditing
2. Human resource
3. Consumer financial services
4. Investment policies
Who did the survey?
1. Standard chartered
2. Global markets
3. Societe generale
4. Synchrony
When was the report done?
1. 2020
2. 2019
3. 2018
4. 2017
How many participants were included?
1. 5234
2. 1013
3. 1234
4. 1000
When was the study done?
1. 2019
2. 2018
3. 2017
4. 2016
How many markets were taken under consideration?
1. 10
2. 9
3. 12
4. 5
In each market, how many groups were being focused on?
1. 5
2. 4
3. 3
4. 2
Which market is ‘Making money work hard’?
1. China
2. India
3. Pakistan
4. Taiwan
Which market is ‘investment for betterment’?
1. China
2. India
3. Pakistan
4. Hong Kong
Which market is ‘future-focused finance’?
1. China
2. India
3. Pakistan
4. UAE
Which market is ‘ business-oriented '?
1. China
2. Kenya
3. India
4. Taiwan
Which market is ‘A family affair’?
1. China
2. India
3. Malaysia
4. Taiwan
Which market is ‘family, friends and finance’?
1. China
2. India
3. Pakistan
4. UAE
Which market is ‘two sides of a coin’?
1. Singapore
2. China
3. India
4. Pakistan
Which market is ‘trending with caution’?
1. China
2. South Korea
3. India
4. Pakistan
Which market is ‘ready, steady, invest’?
1. China
2. India
3. Pakistan
4. Taiwan
Which market is ‘right here, right now ’?
1. The UAE
2. Taiwan
3. South Korea
4. Pakistan
What % of wealth creators are set to fall short of their wealth aspirations by half or more?
1. 56%
2. 48%
3. 62%
4. 79%

References:

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