Understated, ambitious and preparing to be wealthy

SINGAPORE, Sept 24 — The next generation of wealthy individuals will likely defy cultural and social stereotypes of the wealthy of an older, less globalised age, says a study conducted by wealth management consultancy Scorpio Partnership and The Standard Chartered Private Bank.

Seeking to profile potential high net worth individuals, the global study polled 1,414 persons with an average wealth of US$2 million (RM7 million) each, on their lifestyles, financial motivations, goals and attitudes towards wealth.

Confidence levels among this group of “future wealthy” remain high, the survey, conducted online over May and June, found. Four in 10 managed to make money through the recent economic crisis, and, on average, have ambitions to quadruple their current levels of wealth within five to 10 years.

The study said 78 per cent also expect their personal wealth to grow over the next 12 months.

Those in emerging markets seemed especially confident — over 80 per cent of respondents from Asia, Central & Eastern Europe, as well as the Indian sub-continent, Middle East and Africa, expect to make money in the coming year.

Posting the highest wealth targets in the longer-term were respondents from Continental Europe, Asia and the Indian sub-continent.

But, the future wealthy's attitudes towards wealth creation, saving and spending will likely differ from the present generation of wealthy, the report said.

Debunking the marketing myth that increased wealth raises demand for high-profile labels, the report found that this group of potential wealthy would rather “focus on brands that deliver a quality experience with perhaps just a hint of understated luxury” — choosing a car with “sleek design and driving excellence” over one “that is a trifle more loud”, for instance.

Interestingly, the future wealthy also wish to be known for their generosity and hospitality, more than for their financial acumen.

But regional variations abound. While 23 per cent of those in the Indian sub-continent and 22 per cent of those in Asia wanted to be “remembered for making money”, only 6 per cent of North American respondents did.

Instead, 61 per cent of North American respondents want to be remembered “for being a good person”.

Salary remains the most important source of wealth for 96 per cent of the “future wealthy”. Listed investments rank second, with 61 per cent considering these an important wealth generator despite the financial crisis.

Given that 80 per cent of Asian respondents cited listed investments as a key source of wealth for them, Asia's reputation as an investor's hub may strengthen in time, the report said.

Entrepreneurship, on the other hand, is mostly likely to be a source of wealth in the UK and the Indian sub-continent, where one quarter and one fifth of respondents respectively expect the sale of a business to generate significant wealth for them in future. — Business Times Singapore