Wealth Transfer Strategies Among Affluent Parents in Asia

Affluent parents in Hong Kong and mainland China are implementing wealth transfer strategies earlier, according to a survey by DBS Hong Kong. The "DBS Treasures Affluent Family Survey 2026 – From Education to Inheritance: Planning for Children’s Future" reveals an average allocation of HK$5 million in liquid assets for the next generation, with 31% of parents initiating these plans while their children are still in school.

The survey highlights a shift toward earlier intergenerational wealth transfer planning. While mainland parents prefer a mix of investments and life insurance, Hong Kong parents often opt for savings vehicles. A primary concern across both regions includes maintaining flexibility and control over the timing of wealth transfers. Life insurance, known for its potential asset growth, is significant for mainland parents, providing future sums with manageable premiums.

Financial education is a priority, with 94% of parents considering early education crucial and 67% advocating for it by age 13. Amy Kwan, head of business planning at DBS Hong Kong, notes the differing focuses: Hong Kong parents aim for regular savings habits, whereas mainland parents emphasize understanding investments.

To support educational goals, DBS offers initiatives such as joint parent-child activities and the "Future Tycoons Family Wealth Discovery Day" to engage families in practical financial management scenarios. This underscores the importance of experiential learning for effective financial planning.

Overseas education features prominently in family plans, with 91% of parents open to it. Preferences vary; mainland parents often look towards Hong Kong or Singapore, while Hong Kong families favor the UK, Australia, or New Zealand. DBS Treasures offers support through same-day remittances, foreign currency time deposits, and UnionPay Diamond debit cards for travel spending.

The survey indicates a growing trend of seeking professional advice, with 75% of parents planning to do so in the next year, rising to 88% among mainland respondents. Kwan highlights the benefits of a unified banking relationship, where one trusted bank combines deposits, investments, insurance, and wealth planning.

Wing Lo, head of bancassurance & insurance financing at DBS Hong Kong, stresses the long-term value of early planning: "Legacy is a long-distance race against time." Combining savings and insurance strategies allows parents to leverage different financial tools effectively. Through a decade-long partnership with Manulife, DBS offers comprehensive insurance solutions, offering long-term returns that counteract inflation and adapt to market volatility, maximizing financial leverage for diverse family needs.