Over 3 in 10 Hong Kong citizens sacrifice family time for wealth creation

The survey shed light on the wealth management journey of Hongkongers and Singaporeans.

A study on the wealth journey showed that 38% of individuals in Hong Kong chose to give up their hobbies and interests, St. James Place Asia reported.

The study, “ Accelerating the Wealth Journey – From Stability to Abundance”, surveyed 2,000 Singaporeans and Hongkongers from five different affluents of wealth. Further, it dived into how they act upon wealth creation and intergenerational wealth transfer.

Overall, 57% of Singaporeans and Hongkongers do not feel financially wealthy. The thought of losing all finances also made nine of 10 Singaporeans and Hongkongers anxious.

Other sacrifices the respondents are willing to make for long-term wealth, and a significant majority of respondents (52%) indicated a willingness to cut back on spending on luxury items. 

The next most commonly mentioned area was work-life balance, with 45% of participants open to making sacrifices in this regard.

Notably, the wealthier the person is the more likely they are willing to do more sacrifices to maintain their financial status.

Among financially abundant Hongkongers (42%) tend to sacrifice family time instead, in contrast to respondents from lower wealth levels.

Meanwhile, only 25% of financially abundant individuals in Hong Kong expressed similar anxiety about wealth loss.

Preserving wealth
About 69% of Singaporeans and Hongkongers prioritise financial security for building their wealth. Personal lifestyle (64%), providing for family (61%), and intergenerational wealth creation (43%) are also significant factors.

For 83% of Singaporeans and Hongkongers, it is important that the next generation safeguards and grows their wealth, with 37% considering it highly important. However, opinions differ on when intergenerational wealth transfer should occur.

The majority (38%) believe it should begin after a family member's retirement, followed by after their passing (28%), while still active (22%), and a small percentage (13%) believe it should never happen.

Over half of Singaporeans and Hongkongers (52%) lack or don't believe in having a wealth transfer plan. Only 26% have already started transferring wealth to the next generation. 

In Hong Kong, only 17% have a formal will, down from 24%.

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How long it takes to increase wealth
The study reveals that transitioning from one wealth level to the next becomes increasingly time-consuming. On average, it takes 36.4 years for individuals in Singapore and Hong Kong to progress from financial stability to abundance.

In terms of overall satisfaction with their wealth, only 41% of Singaporeans and Hongkongers are content with their current level. 

Of the remaining respondents, 46% express a desire for greater wealth, while 14% believe they already possess an excess of wealth.

However, once they reach the stage of abundance, a significant portion of respondents (42%) feel that they have accumulated excessive wealth.