A RECENT study conducted by HSBC finds Singaporeans' perceptions and attitudes towards affluence have evolved from purely tangible expressions of wealth to intangible assets such as family, health, personal success and quality of life.
The study involved 2,500 affluent respondents in Singapore, Hong Kong, Shanghai, Mumbai and Sydney. Health is the top symbol of affluence for 75 per cent of Singaporeans, ahead of money and liquid assets. This is in contrast to Hong Kong, Mumbai and Sydney where the majority of the affluent defined the meaning of wealth as cash and liquid assets.
With Singaporeans, it seems that concerns about family and retirement are the key factors in the pursuit of wealth.
Sixty-one per cent of the affluent in Singapore felt that good family relationships symbolised wealth, the highest percentage among all five cities. Forty-eight per cent said that providing a comfortable life for their family is what motivates them to grow their wealth. Coming in a close second was having an early and comfortable retirement, with 42 per cent citing this as a motivating factor to grow their wealth.
It seems that the majority of affluent Singaporeans are conservative in their investments, with 83 per cent more likely to invest through savings plans instead of more aggressive avenues like stocks or property.
Singapore had the second largest proportion of risk-averse investors who want to avoid any possibility of capital loss, even if their returns cannot keep up with inflation. Despite this, most Singaporean investors said that they would be able to tolerate moderate investment risks in exchange for potentially higher returns.
This could have implications on how they grow and manage their wealth. HSBC Singapore's head of consumer banking Wendy Lim said: 'This study has provided us with useful insights into the investment behaviour of Singaporeans and positioned HSBC very well to help Singaporeans optimise their wealth management strategy, particularly in the areas of diversification in investments and retirement planning.'
