Support My Efforts By Visiting The Advertisers

Disclaimer

This is a personal blog. The opinions expressed here represent my own, not those of my employer and is not intended to malign any religion, ethnic group, club, organization, company, or individual.

'Rescue Me' Mentality

>> Tuesday, September 15, 2009

Not only do Asians hope to be "rescued" when it comes to planning their personal finances, they also believe the only way to ensure they will save for their retirement - is if it is required by law.


Such attitudes, reflected in a survey by Aviva, are a result of the financial crisis having shaken consumer confidence in the financial sector, leaving consumers feeling "helpless" about planning for retirement, said Mr Simon Machell, chief executive of Aviva Asia.

The annual global survey, in its sixth year, saw a sharp drop from the previous years' findings which had registered growth in consumer confidence over personal finances.

For example, in India, the proportion of consumers claiming not to understand pensions and savings policies rocketed from 41 per cent last year to 70 per cent.

Asians are also looking to their governments to help them save for retirement, with over 65 per cent of consumers in India, China and Hong Kong indicating as such.

Only 21 per cent in the United States and 37 per cent in the United Kingdom felt the same way.

"I think probably some of the confidence before was false confidence in a way, so people saw stock-markets rising, they saw their savings go up - but they probably didn't understand what was driving that," said Mr Machell.

Most Asian consumers felt they lacked the information to make well-informed decisions about personal finances, and financial markets in some Asian countries were also less mature, leading to less confidence from consumers, he added.

Both governments and the savings industry will have to work harder to educate the public about financial planning, such as how much one should set aside for retirement needs, and how to pay for things like long-term health care.

With consumers' trust in financial institutions and the savings industry having been battered, the industry will also have to work to rebuild trust by providing "clear information", said Mr Machell.

Consumers would also be expecting different and less risky financial products than before, he added.

The survey involved 28,000 customers in 26 countries.
 
 
Comments:

In Singapore, many also rely heavily on the government's actions for personal financial planning. In the area of insurance, Dependant Protection Scheme (DPS), Home Protection Scheme (HPS). For medical coverage, Medishield and Medisave. For retirement, CPF OA, SA and CPF LIFE now.

It has been taken granted and many rely solely on the government for all their personal financial planning. More emphasis should be placed on educating the public to take responsibility of their own finances.

0 comments:

Disclaimer

Privacy

The owner of this blog does not share personal information with third-parties nor does the owner store information is collected about your visit for use other than to analyze content performance through the use of cookies, which you can turn off at anytime by modifying your Internet browser’s settings. The owner is not responsible for the republishing of the content found on this blog on other Web sites or media without permission.

Blog Comments

The owner of this blog reserves the right to edit or delete any comments submitted to this blog without notice due to;

1. Comments deemed to be spam or questionable spam
2. Comments including profanity
3. Comments containing language or concepts that could be deemed offensive
4. Comments that attack a person individually

Terms and Conditions

All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

This policy is subject to change at anytime.

About This Blog

To promote the education of individuals for the need to have a healthy lifestyle and wealth management through proper financial planning, particularly in investments.




Top Blogs


Awards

Top Sites

  © Blogger templates Sunset by Ourblogtemplates.com 2008

Back to TOP