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More than 70 percent of wealthy expatriates in Hong Kong plan to settle in the city for at least eight years, thanks to financial security in the city, a report by St. James's Place Asia revealed.
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The report, titled Money on the Move, is based on a double-blind survey conducted in May of 450 affluent and high-net-worth residents in Hong Kong, aged 25 to 54 from a wide range of international backgrounds, including Australian and Canadian passport holders.
Of the respondents, 74 percent plan to stay for at least eight years, while 50 percent say they will likely only return to their home country upon retirement, and 12 percent are unlikely to return at all.
Wealthier expats are the most likely to settle overseas permanently, with high-net-worth respondents over four times more likely to say they will not return home compared with mass affluent respondents.
A majority 67 percent of Hong Kong respondents believe achieving financial freedom would have taken at least five years longer had they never lived overseas, highlighting the financial benefits of expat life in Hong Kong.
Meanwhile, 71 percent believe living abroad will bring forward their retirement by at least three years.
On the other hand, expatriates face challenges managing wealth due to cross-border complexity, impacting more than nine in ten respondents, as they remain concerned about macroeconomic volatility.
More than half of the respondents use professional financial advisers to manage their wealth, including tax planning and retirement planning.
The survey revealed that 90 percent of the respondents believe that obtaining the right financial advice earlier would have improved their investment earnings and savings. It is estimated that they could save US$12,757 (HK$99,984) per year, had they sought the right advice earlier.
The study reveals that only one third of Hong Kong expats have life insurance, a will or estate, and a trust or foundation structure in place, with only 12 percent feeling fully prepared in their wealth succession planning.
"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, chief executive of St. James’s Place Hong Kong.
