Sun Life Study: Financial Security Is The Top Priority In Heritage Planning

JAKARTA - Sun Life Indonesia today released the latest survey results entitled Passing the Torch: Building Lasting Legacy in Asia, which shows that financial security is the main foundation in heritage planning in the Asian region. However, as many as 60 percent of respondents said they were worried that their wealth would not survive through their generation of children, signaling the importance of more structured planning and increasing financial literacy between generations.

The survey involved more than 3,000 respondents in Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, and Vietnam, to dig deeper into the views, behavior, and aspirations of Asian society in planning heritage, both in the form of financial wealth and family values and traditions.

As many as 70 percent of respondents place family financial protection as a top priority in inheritance planning. The next priority is to ensure a clear and well-conveyed inheritance plan to avoid confusion or dispute (53 percent), as well as build enough wealth to be forwarded to the next generation (48 percent).

Most of the respondents wanted the wealth they left to be productive. As many as 59 percent hope that the legacy will be invested in financial assets, life insurance, or family businesses to continue to create long-term growth. The same amount (59 percent) also wants their inheritance to be used for basic needs such as housing and health, and 56 percent wants the legacy to be used to support education to the university level or vocational training.

Nearly two-thirds (60 percent) of respondents are worried that their wealth will not survive through the generation of their children. More than half (55 percent) also feel that their heirs do not yet have sufficient financial capacity to manage inheritance. Only 31% believe their children will look after, develop, and continue their values and will in terms of wealth management.

This concern is the strongest felt by the group of high-income people, where 28 percent said they were "very worried" about the sustainability of their family wealth.

Maika Randini, Chief Marketing Officer of Sun Life Indonesia, saw changes in the family's perspective on the concept of inheritance not only about wealth, but also how to provide a more meaningful sense of security, education, and life for the next generation.

"The results of this survey emphasize the importance of proactive planning, professional guidance, and open communication in the family so that values and assets can be inherited sustainably," he said, in a written statement, Thursday, November 6.

For many families in Asia, inheritance is not only defined as property. A total of 41% of respondents want to leave their inheritance in the form of wealth, money, property, and family business. Meanwhile, 15 percent want to continue the family tradition, and 13% hope to have a positive influence personally on their family and friends.

However, concerns over the loss of family values are quite high. Only 31 percent of respondents believe their children will maintain family traditions. Some of the main reasons mentioned are differences in priorities between generations (58 percent), limited involvement (39 percent), misinterpretation of family values (30 percent), and weak intergenerational ties (29 percent).

"Now more families view inheritance as something more than a financial relic. They want to leave a sustainable impact through education, health, and better life opportunities for the next generation," added Maika.

Although awareness of the importance of inheritance planning is increasing, the level of readiness is still relatively low. Only 19 percent of respondents feel really ready if they have to leave their legacy today, increasing slightly to 29 percent among high-income people. Only 10 percent have prepared and communicated a complete legacy plan, while nearly half (45 percent) only have part of the plan, and 31 percent have not prepared at all.

Awareness of planning tools such as wills, guardianship, and financial advisors is indeed high, but their use is still low. As much as 70 percent are aware of the inheritance planning document, but only 38 percent really use it. Likewise, financial advisors '67 percent know it, but only 36 percent have consulted.

Most discussions about inheritance in the family are also not structured. Nearly half (44%) is still conducted informally, whereas only 27% of respondents consider this method the most effective.

Many families have started talking about inheritance, but have not actually made concrete plans. More structured discussions and involving all family members are important to avoid conflict and ensure inheritance can be continued clearly and sustainably," explained Maika.

Families are now increasingly seeing financial education as a form of invaluable legacy. Most respondents said they had or planned to share personal financial experiences (54 percent), had open discussions on finance (53 percent), and taught the basics of financial management (53 percent).

The need for professional guidance has also increased. As many as 37 percent of respondents have used financial advisory services, and 42 percent plan to do so. High-income groups took the lead (58 percent), followed by Gen Z (47 percent) who showed a change in attitude towards the importance of structured financial support.

Today, many families want to inherit more than just wealth. They want to provide knowledge and value to manage wealth wisely. Sun Life is committed to assisting Indonesian families in building heritage that not only survives, but also brings meaning to the next generations," concluded Maika.