A recent report by Etiqa Insurance Singapore highlights that 77% of Singaporeans are prioritising leaving an inheritance for future generations. This trend is particularly strong amongst those aged 55 and above, with 74% committed to wealth transfer. The report underscores the importance of proactive wealth planning and management in Singapore.
The study, conducted in collaboration with Kantar, surveyed 1,008 Singapore citizens and permanent residents. It found that over half of the respondents (53%) have either received or expect to receive an inheritance, with expectations even higher amongst those under 24, at 62%. This indicates a growing need for financial literacy and planning amongst younger generations.
Amongst those expecting to receive or give an inheritance, one in five anticipates a windfall of $1m or more. This highlights the necessity for financial education to manage such wealth effectively. Raymond Ong, CEO of Etiqa Insurance Singapore, stated, “Our Wealth Transfer Insights Report findings indicate that wealth transfer is increasingly viewed not just as a financial event, but as a purposeful act of next generation empowerment.”
The report also reveals that nearly half of Singaporeans (46%) have initiated wealth transfers during their lifetime, moving away from solely posthumous transfers. Additionally, 49% use insurance as a tool for wealth transfer, recognising its effectiveness in legacy planning.
Despite these proactive measures, challenges remain. Concerns about family conflict, financial security, and wealth mismanagement persist. Ong emphasised the need for strategic and informed legacy planning to address these issues and ensure that wealth transfer empowers future generations. Etiqa Insurance Singapore is committed to supporting the community through financial planning literacy workshops to equip individuals with essential wealth management skills.
“`
