Investments

Asian emerging affluent need new wealth strategy, says survey

Emerging affluent consumers in Asia could boost their savings by an average of 42% if they move from a basic savings approach to a low-risk wealth management strategy.

This is according to a new Standard Chartered study, The Emerging Affluent Report - The Race to Save. It reveals how this rising consumer class are losing out on savings as a result of an overly-simplistic approach to their personal finances. In some cases, it says, cash is sitting under mattresses instead of in bank accounts.

While the emerging affluent are ‘active’ savers, with two in three putting money aside every month, a majority are using basic products – savings accounts and fixed-term deposits – to reach their financial goals.

A switch to a more effective approach could make a huge difference, says the survey. 

For example, consumers in Hong Kong, Singapore, India and Taiwan could increase their savings by as much as 86%, 52%, 48% and 43% respectively over 10 years. 

The study of 8,000 emerging affluent consumers across eight markets in Asia and Africa also finds that home ownership and children’s education are top savings priorities for most individuals – ahead of retirement.