Nearly one in two or 44% of women in the high net worth income bracket in Singapore say that they do not feel confident about their financial future.

The statistic goes up to 54%, for women aged 45 and 49, making this the group with the least confidence in their financial future.

This is despite having personal wealth – comprising savings and investments across various instruments such as real estate, stocks and bonds – of at least $2 million.

These findings were highlighted in a survey of 250 respondents commissioned by Prudential Singapore on how high net worth women in Singapore approach wealth planning. 

At present, the city-state is home to over 34,000 of these high net worth women who have investable assets of at least $2 million.

Of the respondents, close to half or 48% noted that their financial insecurity stems from an inadequate knowledge of wealth management. 

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Other concerns flagged by the respondents include fear of their investments failing (noted by 44%) as well as rising medical expenses and a potential loss in income due to health-related issues (43%).

The confidence levels of high net worth women have been shaken further by the Covid-19 pandemic.

Since the onslaught of the health-and-economic crisis, nearly eight in 10 or 79% of the respondents indicated that they have become more cautious when making investments, while over 6 in 10 or 64% said that their risk tolerance level has been lowered.

SEE: 90% of Singapore high net worth individuals rely on insurance to for wealth and legacy planning, according to AIA and EY

Against this backdrop, female high net worth clients have been showing a “strong interest in acquiring knowledge about wealth accumulation and transfer,” observes Angeline Alexander who heads the high net worth and affluent customer segments at Prudential Singapore.

She adds that these women have also been taking proactive steps to secure their financial future. For instance, the women surveyed have set an ambitious target of accumulating five times their current wealth ahead of their retirement.

In line with this, the life insurer notes that nearly 8 in 10 or 76% of high net worth women have begun reviewing their financial plans with their wealth managers, asset managers and insurance specialists, since the pandemic hit.

While most women have been focused on wealth creation, the survey indicates that only 24% of the respondents have been fully focused on wealth preservation.

This is cause for concern, as it is “equally critical to preserve what you amass,” says Alexander.

“By placing more emphasis on protecting wealth, and doing so early in one’s life, we can safeguard our hard-earned savings from unforeseen risks,” she stresses.

“We are seeing an increase in demand for health insurance solutions as many are starting two recognise the impact that healthcare costs can have on their wealth and retirement goals,” Alexander adds.