Prudential “Financial Wellbeing Tracker” shows more optimism; nearly 60% of Gen Alpha parents aim to give ongoing financial support to their kids, but 2-in-3 have yet to start saving for it
• Prudential launches Entrust Multi-Currency Plan offering market-first FlexIncome and FlexLegacy options that enable customers to change currency for better wealth allocation and legacy planning
(25 February 2025, Hong Kong) Prudential today announces findings in the annual “Financial Wellbeing Tracker” (the "Tracker")1. This year’s Tracker, the second edition, delves into the outlook, aspirations, worries and goals of Hong Kong people in relation to their financial wellbeing.
The survey findings point to a modest improvement in the overall index score, which rose to 58.0 points out of 100 this year from 53.1 points last year. The scores across the four pillars2 – “Security Now,” “Security in the Future,” “Financial Freedom Now” and “Financial Freedom in the Future” – all rose from last year’s levels. Notably, the score for current financial freedom saw the largest year-on-year increase of 6.1 points. For an overview of the overall Financial Wellbeing scores, please refer to Appendix.
Noteworthy this year is how the Tracker declines with age. Those aged 18 to 35 scored 62.7 points, a score that drops to 57.2 for those aged 36 to 49. Among those in the 50 to 60 age-band, the score slips further to 53.5. Perhaps reflecting a “live in the moment” mindset, the 18-to-35 group also scores higher for current financial freedom at 64.4 points. By contrast, the older 50-to-60 demographic appears to be more financially cautious, scoring just 52.9 points for present freedom.
The Tracker dives deeper into the financial wellbeing of Gen Alpha’s parents, examining topics including their support for their children, as well as their expectations and preparedness for wealth succession. Gen Alpha refers to the generation born between 2010 and 2024.
Gen Alpha parents on financial wellbeing: a relatively sunny outlook
- Gen Alpha parents scored 62.3 points for financial wellness, above the average score of 58.0 points, especially for optimism about their future financial freedom. Their confidence in having adequate savings to cover their future daily needs (50% vs 39% overall) stands out.
Gen Alpha parents on support for their children: respect and back up children in pursuing their dreams, yet financially unprepared
- Nearly three quarters (74%) of Gen Alpha parents seek to respect and nurture their children’s personalities and interests, while 73% encourage them to stay true to themselves.
- Gen Alpha parents are keen to unleash their children's potential, but while almost half (48%) of those surveyed said they have plans in place, they are not yet walking the talk. Only a third (33%) said they have implemented their plans, while 18% have yet to start planning how to develop their children's different skills.
- 58% of Gen Alpha parents think they will financially support their children regularly or from time to time, while 94% of Gen Alpha parents believe they will have to financially support their children until the age of 25. Yet only 37% are saving for their children's future.
Gen Alpha parents on legacy planning: high hopes, yet low readiness
- Gen Alpha parents are not confident that family savings will be passed on through generations. While 62% say they will support their children with family savings, most believe this legacy can only last two (63%) or at most three (33%) generations.
- Despite the effectiveness of trusts as a wealth preservation tool, only 13% claimed to be knowledgeable about trust.
Market-first FlexIncome and FlexLegacy options to safeguard wealth allocation and legacy
Felix Fung, Chief Product Officer at Prudential Hong Kong Limited, said: “While Gen Alpha parents are encouraging their children to pursue their dreams, their support may be inadequate in the long run. They need to think beyond just providing for their children and consider how to empower them with all-round support.”
“Our findings highlight a gap between how Gen Alpha parents think about wealth transfer and their actual use of suitable tools, suggesting they need to enhance their financial literacy and plan to ensure effective wealth succession. We are launching Prudential Entrust Multi-Currency Plan, which incorporates elements that resemble a trust3, to help every family achieve financial freedom. Our first-of-its-kind FlexIncome and FlexLegacy options offer customers the flexibility to allocate and pass on an enduring legacy to support the dreams of their children, hence unleashing their potential.”
The Prudential Entrust Multi-Currency Plan (the “Plan”) is the first savings insurance plan in Hong Kong to incorporate elements resembling a trust. It is designed to help customers achieve their long-term savings and legacy planning goals through flexible wealth allocation and succession. Its innovative features include:
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FlexLegacy Option |
【First in Hong Kong market*】Option to designate death benefit percentages in advance, to be paid to designated beneficiaries when they reach certain ages or life milestones, such as university graduation, marriage or property purchase, thereby providing critical support at important moments. |
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Currency Change Option |
【Rare in Hong Kong market*】Change of policy currency within the same plan with six options – United States Dollar (USD), Hong Kong Dollar (HKD), Renminbi (RMB), Australian Dollar (AUD), Canadian Dollar (CAD) or British Pound Sterling (GBP) – to fit different life plans, such as children studying abroad or starting a new chapter overseas. The policy terms and projected returns remain unchanged after conversion.4 |
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Dual Bonuses |
【Highest in Hong Kong market*】In the 25th year, the total internal rate of return is projected at 6.1%, with the projected surrender value nearing four times the total premiums paid. By the 100th year, the total internal rate of return5 may reach 7.2%. |
Remark: We base our statements about the options of our plan being “First in Hong Kong market”, “Rare in Hong Kong market” and “Highest in Hong Kong market” on our understanding and interpretation of current market information, by comparing with other publicly available multi-currency savings plans issued by major Hong Kong life insurance companies for individual customers as at 6 January 2025.
From now until 14 March 2025, customers successfully enrolling in the Prudential Entrust Multi-Currency Plan can enjoy double rewards of up to 63% of the first-year premium.6
For more details about the plan and promotional offers, please refer to the product brochure and promotion flyer on Prudential’s official website.
1 Prudential conducted an online questionnaire survey in December 2024, interviewing 700 Hong Kong respondents aged between 18 and 60.
2 “Security Now” means having control over daily and monthly spending; “Security in the Future” means being able to absorb a financial shock; “Financial Freedom Now” means having the financial freedom to make choices to enjoy life; and “Freedom of Choice in the Future” means being on track to meet financial goals.
3 The “elements that resemble a trust” refers to the FlexIncome and FlexLegacy options within this plan, it does not mean that this insurance plan is equivalent to setting up a trust.
4 “Projected returns remain unchanged” means the projected return of the policy after currency conversion is the same as that of other policies in such relevant new policy currency under the original plan.
For example, when converting from USD to GBP, the future returns of the converted GBP policy will be the same as other GBP policies in the original plan. Projected returns including guaranteed cash value and non-guaranteed bonuses, and future non-guaranteed returns may be affected by various factors, including investment performance or future outlook.
5 The total internal rate of return and projected surrender value mentioned above is not guaranteed. It is based on a 5-year payment USD policy with a total premium of USD 50,000 and is calculated at policy years 25 and 100, respectively, under the assumption that there are no changes to the policy.
6 Products and offers are subject to terms and conditions. The double reward includes a premium refund offer
and a lump-sum premium prepayment with a guaranteed preferential interest rate offer, totalling up to 61% of the first-year annual premium. Take up the plan on or before 14 March 2025 to enjoy an extra 2% early bird offer.
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Disclaimer
Prudential Entrust Multi-Currency plan is underwritten by Prudential Hong Kong Limited. This document does not contain the full terms and conditions of this plan and is for reference only. For further details and the terms and conditions of this plan, customers can ask Prudential for a sample of the policy document. This document is for distribution in Hong Kong only. It is not an offer to sell or solicitation to buy or provide any insurance product outside Hong Kong. Prudential does not offer or sell any insurance product in any jurisdictions outside Hong Kong where such offering or sale of the insurance product is illegal under the laws of such jurisdictions.
About Prudential Hong Kong Limited
Prudential has been serving the people of Hong Kong since 1964. Through Prudential Hong Kong Limited and Prudential General Insurance Hong Kong Limited, we provide a range of financial planning services and products including individual life insurance, investment-linked insurance, retirement solutions, health and medical protection, general insurance, and employee benefits to protect over 1.3 million customers in Hong Kong. In 2023, Prudential established its Macau branch to offer health insurance and financial solutions for the Macau community, completing its footprint in the Greater Bay Area.
Please visit www.prudential.com.hk for more information.
Appendix
Overview of Financial Wellbeing index：
