Wealth transfer planning has become a top priority for wealthy families in Hong Kong and mainland China, often starting when kids are just four. A recent survey from DBS Hong Kong found parents setting aside an average of HK$5 million in liquid assets for their children. This is a big change from the old ways,which usually began much later.
The “DBS Treasures Affluent Family Survey 2026” shows 31% of parents started planning while their kids were still in school. Today’s parents are much more proactive than older generations, who often put off such planning. They’re weaving wealth transfer strategies into their children’s early lives, showing a growing awareness of financial planning's importance.
Mainland Chinese parents often lean towards investments and life insurance for inheritance planning, while those in Hong Kong typically prefer savings. Across both regions,flexibility and control over when wealth is transferred are major concerns. Mainland parents frequently choose life insurance along with investments,aiming for asset growth and larger payouts down the line.
Financial education plays a key role in this planning. The survey revealed 94% of parents believe financial awareness is crucial for their kids,with 67% thinking education should start by age 13 or even earlier. Amy Kwan, head of business planning at DBS Hong Kong,pointed out that Hong Kong parents focus on building regular savings habits,while mainland parents stress understanding investments .
To help families in these efforts, DBS offers several initiatives,including joint parent-child activities and seminars on overseas education. One highlight was “Future Tycoons Family Wealth Discovery Day,” where families participated in simulated scenarios about life planning and financial management.
Overseas education is a big part of long-term planning,with 91% of parents open to sending their kids abroad. Mainland families often look to Hong Kong or Singapore,while those in Hong Kong prefer the UK, Australia, or New Zealand. DBS Treasures supports this with services like same-day remittances to 44 destinations and time deposits in 14 currencies for education funding .
Looking ahead, three-quarters of parents plan to seek professional advice in the coming year,a figure that jumps to 88% among mainland respondents. Kwan emphasized benefits of having one trusted bank manage deposits,investments,insurance,and wealth planning, helping families streamline their financial strategies.
The shift towards early wealth transfer planning is influenced by several factors. First,the longer funds can grow, the better,especially with tools like life insurance . Second,recent market volatility has made wealth preservation a priority for many parents. Finally, rising overseas education costs have pushed families to connect education funding with inheritance plans through long-term insurance products .
“Legacy is essentially a long-distance race against time,” said Wing Lo, head of bancassurance at DBS Hong Kong. He noted that starting financial planning while kids are still in school gives parents a significant edge. Those who act while enjoying stable incomes can allocate premiums more flexibly,creating financial buffers for their children's future needs.
For over decade,DBS has worked with Manulife to provide insurance solutions. These products can offer long-term returns that help combat inflation and market fluctuations. They also include multi-currency options, allowing families to adapt to changing needs and seize new market opportunities .
Lo suggested families could benefit from mixing savings and insurance strategies. Flexible insurance solutions,along with various premium payment options,can meet the liquidity needs of Hong Kong parents while providing support mainland families are after.
