SINGAPORE — Younger Singaporeans were more keen on starting early with financial advisors, according to a study by wealth management group St James's Place Asia.
The study, titled Advice at Every Stage of the Journey, revealed that 55 per cent of respondents aged 27-39 have consulted a financial advisor, compared to just 34 per cent of those aged 50-69 and the overall average of 47 per cent.
Furthermore, results of the study showed that 91 per cent of respondents aged 27-39 have expressed that the financial advice they received was useful compared to 76 per cent of those aged 50-69. When asked about the top three areas they would need more financial advice and knowledge on, 90 per cent of younger respondents said investments, followed by retirement planning at 85 per cent, and property and mortgage at 84 per cent.
The study was conducted among 1,000 Singaporeans categorised across five different levels of wealth – Financial Stability, Financial Security, Financial Flexibility, Financial Freedom and Financial Abundance – and examined their perceptions around financial advice amid economic headwinds and the emergence of wealth tech solutions and robo-advisory platforms.
Wealthy Singaporeans advocate engagement with financial advisors
Results of the study also revealed that those at higher levels of wealth were more likely to attribute their success to financial advice. Some 80 per cent of financially abundant Singaporeans said that working with financial advisors has made them wealthier.
Wealthier Singaporeans were also far more likely to engage with financial advisors than those who are financially stable (78 per cent versus 45 per cent). Compared to the financially stable group, wealthier respondents said they were more likely to make better decisions as a result of financial advice (79 per cent versus 48 per cent), and to advocate for earlier and greater engagement with financial advisors (79 per cent versus 47 per cent).
Across all categories, 93 per cent of respondents said they were worried about the rising cost of living with respondents who are financially stable expressing greater concern than those who are financially abundant (97 per cent versus 89 per cent).
In response to ongoing economic uncertainty, 72 per cent of those in the Financial Abundance group have also adopted a more conservative approach to financial planning. In contrast, less than half (49 per cent) of those in the Financial Stability group said they have adopted a conservative approach.