Financial planning rises as 63% cite uncertainty, Prudential says

Thailand stands out: 70% choose higher-risk investing, and 68% prefer short-term instruments.

Young adults across seven Asian markets are taking a more planned approach to managing their money, even as many say they are living with uncertainty, according to a Prudential Plc.

The median age of respondents was 29. Nearly half were single (48%), whilst 44% were married and 8% were in a partnership. 

More than half already had children, with 34% having one child, 17% having two and 3% having three or more. Another 31% had no children but planned to have them, whilst 15% said they intended to remain childless.

Across the region, 63% said they believe they are living in an era of uncertainty. Despite this, 71% said having a clear financial plan is more important than a “live for today” mindset, and 58% said they focus more on the future than enjoying the present.

Indonesia recorded the highest preference for financial planning at 82%, followed by the Philippines at 78%. Hong Kong was the lowest at 60%.

Investment attitudes were split between caution and risk-taking. 

Overall, 40% said they prefer safe, low-risk investment options, whilst 42% said they are willing to take higher risks for better returns. 

Thailand stood out, with 70% preferring high-risk investments and only 20% choosing low-risk options. 

Most respondents leaned towards long-term investing, with 57% favouring long-term instruments compared with 27% who preferred short-term investments. 

Long-term investing was most common in Indonesia at 64% and the Philippines at 67%, whilst Thailand had the strongest preference for short-term instruments at 68%.

Flexibility was a key theme across markets. Some 62% said they want financial plans that can adjust as their circumstances change, compared with 24% who said they prefer to stick to disciplined saving to meet goals. 

More than half, or 53%, said they try to balance investing with spending on experiences they enjoy, whilst 33% said they manage their finances strictly to maintain stability.

In insurance, respondents were comfortable using digital tools but still valued human support for complex decisions. 

About 54% said they feel confident choosing and managing insurance and investments on their own, whilst 61% said they are confident researching and selecting products independently.

For insurance advice, 64% preferred digital tools, compared with 36% who preferred human advisers. Indonesia was the most evenly split, with 51% preferring digital tools and 49% preferring human advice.

However, when it came to specific areas, human advisers were preferred. About 59% said they want human help when identifying suitable insurance products. 

Some 70% preferred human advisers to explain coverage details, 68% preferred them to help with claims, and 57% preferred human support for managing insurance policies.

Looking ahead, 69% of respondents said they expect their personal finances to improve over the next five to 10 years. 

Financial management and security were the top concerns, cited by 77% of respondents. 

This was followed by family responsibilities at 53% and health and medical concerns at 52%. 

Career and education were cited by 42%, work-life balance and social pressures by 31%, and broader economic conditions by 26%.

The survey 5,348 people aged 20 to 35 from Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan and Thailand.