A recent supporting parents survey conducted by HSBC found that familial ties remain strong in Singapore with the majority financially supporting their elderly parents. However despite getting financial support from their children, the elderly still experience some degree of financial difficulties. They are also less tech-savvy when it comes to managing their finances and many do not have a professional inheritance plan in place.
The supporting parents research took the views of more than 2,200 people in Canada, mainland China, Hong Kong, Singapore and UK. It aims to understand the concerns and needs of mass and mass affluent consumers who are supporting their parents in terms of inheritance planning and everyday life.
Ms Alice Fok, Head of Customer Propositions and Marketing, HSBC Bank (Singapore) said: “The COVID-19 pandemic has put extra pressure on the ‘sandwich generation’ – those who provide care and financial support for both their children and elderly parents – making smart, long-term wealth planning more important than ever. Proper planning can take much of the stress out of both saving for retirement and caring for retirees.”
Key findings in mainland China, Hong Kong and Singapore
Taking the first steps towards legacy planning
The survey showed that Singaporeans are still encountering considerable difficulties in helping their parents plan for old age. Key difficulties are helping the elderly understand the planning process (42% - affluent and 40% - mass) and the pros and cons of wills and trusts (41% - affluent and 36% - mass).
An area of concern is that while most affluent Singaporeans (63%) are tapping on banks and law firms to prepare their inheritance plans, only 43% of mass Singaporeans are getting professional help.
Ms Fok added: “Part of ensuring a happy and comfortable retirement for our parents is being able to reassure them that their legacy is safe and secure. Working alongside a trusted advisor will help families balance various considerations including financial goals, obligations and aspirations.”
HSBC Singapore offers a full range of investment and insurance solutions to support working adults and their ageing parents with their financial needs, including legacy and estate planning.
Premier Family Banking was introduced in December 2019 to enable customers to extend Premier privileges to their spouse and children when they set up individual Premier accounts for their family members at a lower Total Relationship Balance of SG$30,000. The proposition refresh is part of HSBC Singapore’s ongoing effort to improve solutions and offerings through the lens of customers.
Top tips for a better retirement
Reframe how you think about retirement:
It’s easy to put off planning your retirement so reframing how you view it is important. Think of it as a chance to pursue your passions and have new adventures. Make sure you make the most of it by planning ahead.
Visualise the retirement you want:
Think about the kind of retirement you want. Do you want to go travelling, move home, take up a new hobby or even start a new business? Having a broad idea of how you’d like your life in retirement to look will allow you to plan for it more effectively.
Ask the experts:
Nobody expects you to be an expert in saving and investments, so use free online advice or seek professional financial advice to help you plan and cost out your retirement plans. This will help decide the right approach. Don’t be afraid to ask questions – get clarity before making decisions.
From managing to planning:
Managing your finances is not enough – you need to plan where you can save money and how much. Use online tools such as savings calculators and budgeting apps to help to identify the changes you can make today that will cut costs and then direct the savings to your future.
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