About 44% of high net worth (HNW) women in Singapore do not feel confident about their financial future, with those aged between 45 and 49 (54%) having the least confidence, according to a new survey.

Close to half (48%) of the 250 respondents said an inadequate knowledge of wealth management is a key factor fuelling their financial insecurity, according to the survey commissioned by Prudential Singapore, which explores how the growing number of HNW women in the city-state approach wealth planning.

Singapore has more than 34,000 HNW women with investable assets of at least S$2 million (US$1.48 million).

The other concerns highlighted by the respondents were the fear of their investments failing (44%) as well as rising medical expenses and potential income loss due to health-related issues (43%).

The Covid-19 outbreak has further impacted confidence. Since the pandemic, 79% of the respondents said they have become more cautious when it comes to making investments, and 64% said their tolerance for risk has lowered.

But HNW women are taking proactive steps to secure their financial future. The women surveyed have set an ambitious target of accumulating five times their current wealth ahead of retirement.

Angeline Alexander, head of high net worth and affluent customer segments at Prudential Singapore, says: “While wealth creation is important, it is equally critical to preserve what you amass. The survey has found that only 24% of the respondents are fully focused on wealth preservation. By placing more emphasis on protecting wealth, and doing so early in one’s life, we can safeguard our hard-earned savings from unforeseen risks.

“The unprecedented Covid-19 outbreak has raised awareness of wealth protection. In particular, we are seeing an increase in demand for health insurance solutions as many are starting to recognize the impact that healthcare costs can have on their wealth and retirement goals,” she adds.

Since the pandemic hit, 76% of HNW women have begun reviewing their financial plans with wealth managers, asset managers and insurance specialists, according to the survey. Additionally, 61% are looking to insurance as a means to plan for their retirement.