Nearly all expatriates in Hong Kong and Singapore claim that life abroad has significantly improved their financial state, though a significant portion do not use advisers, according to a report by British wealth manager St. James’s Place.
Nearly all expatriates across Hong Kong (94%) and Singapore (90%) believe life abroad has accelerated financial freedom, according to a survey by St. James’s Place (SJP) entitled Money on the Move. 85% and 83%, respectively, also say that they can retire earlier than back home.
For expats in Hong Kong, 67% of respondents estimate that it would have taken at least five years longer to achieve financial freedom and 71% said it would take at least three more years to retire if they had never lived overseas. Almost all respondents from both hubs said they earn more income and save more each month after expenses than they would in their home country.
Financial literacy drives financial behavior
However, many claim they could do even better through higher savings and lower tax losses had thought sought expert opinions, with more than 40% admitting they do not use financial advisers to manage their global wealth. There are unique international challenges with Hong Kong expats naming cross-border regulations and taxes (91%) as the biggest barriers to wealth accumulation while Singapore expats cited currency volatility (85%).
“The value of financial advice for expats goes beyond achieving better returns. It is about an ongoing relationship that evolves with increasingly international lives, offering continuity, clarity and confidence for the future,” said Oliver Wickham, SJP’s Hong Kong CEO as well as Asia & Middle East partnership director.
Money on the Move is based on an online study of affluent and high net worth residents, including 450 in Hong Kong and 450 in Singapore. In Hong Kong, HNW respondents were defined as those with a minimum annual household income of HKD1.2 million and investable assets of HKD1.5 million. In Singapore, the amount is SGD210,000 and SGD250,000, respectively.
