Kathmandu. Asian households are increasingly prioritizing “succession planning,” insurance and financial security to ensure financial stability for future generations.
According to a recent study by Sun Life Asia, insurance-based financial protection has become a key strategy for Asian families to save and pass on wealth across generations. According to the survey titled ‘Building a Lasting Legacy in Asia’, 70 per cent of respondents cited ensuring financial security as the most important element of succession planning. This was followed by clear and well-structured estate planning (53 per cent) and substantial wealth creation for the next generation (48 per cent).
However, the study also highlights a worrisome reality. In the survey, 60 percent of the respondents expressed fear that their wealth will not last to their children’s generations. Another 55 percent said the heir may lack the financial skills needed to manage their assets.
Only 31 per cent of respondents are confident that their next generation will be able to properly protect and develop the resources available to them.
The study was conducted among more than 3,000 respondents in six Asian countries: Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Vietnam. According to the report, the Asian region is expected to witness the world’s largest intergenerational wealth transfer over the next decade. This will open up new opportunities for the financial planning, insurance and investment sectors.
According to analysts, succession planning is no longer just a process of transferring assets, but it has become an integral part of ensuring financial security, family stability and long-term asset management for future generations. According to them, the stronger the financial safety structure, the more asset sustainability will be ensured for future generations.
In addition, experts suggest that integrating insurance, investment management and financial literacy into legacy planning will enable Asian families to pass on their wealth to future generations in a more sustainable way.
