The Value of Financial Planning and Awareness of CFP Certification: A Global Financial Planning Survey Singapore Results

Transcription

2 How was the global survey conducted? From 22 June to 26 July, 2015, a total of 19,092 adults who have primary or shared responsibility for household financial decisions were interviewed The online survey was fielded in 19 markets and took 10 minutes, on average, to administer Final market-level data were weighted by age within gender and education, and where available to region and household income benchmarks within each market. A total weight was then applied to give each market equal representation in the final global dataset Australia Austria Brazil Canada China France Germany Hong Kong Indonesia Ireland Malaysia Netherlands New Zealand Singapore South Africa South Korea Switzerland United Kingdom United States 2

3 Key Headlines: Singapore Low consumer confidence in achieving financial life goals: Just 13% have strong confidence (strongly agree) that they will achieve financial life goals. Few consumers feel strongly in their financial know-how (11%) or success in sticking to their financial strategy (9%). Home ownership tops the list of financial priorities: Home ownership (rated by 60% as very important) is the top financial priority among consumers. Being free of either major financial debt (58%) or common consumer debt (57%), as well as being prepared for an unexpected financial emergency (56%) and building up savings (55%), are also prioritized. There is broad interest in financial planning services to help consumers get on track financially: Retirement planning (58%) is seen as the most helpful financial planning service offered, followed by investment planning (48%) and help with budgeting, cash flow, and debt management (42%). Yet consumers face a range of barriers to engaging with a financial professional: Most consumers (68%) say trustworthiness is a very important consideration when choosing a financial advisor. Yet, even more say they do not know whom to trust (72% agree either strongly or somewhat). Sizable majorities believe that financial planning requires too much paperwork (69%) and is too confusing (68%) and complicated (66%), with unreasonable fees (64%). Half do not seem to understand the financial planning fee structure (50% are not sure whether they would prefer to pay fees or a commission for financial planning services). Financial professionals can overcome consumer barriers by leveraging key benefits : Demonstrating how financial planners help consumers by devising a tailored long-term plan (54% cite as major reason to work with a financial professional), simplifying financial matters (53%), providing peace of mind (53%), and saving money (52%) are keys to becoming a trusted source of advice (54%). And by reminding consumers that financial planning works for others like them: Consumers working with a financial professional generally feel better prepared. and this pattern is even more pronounced among those working with a CFP professional. For instance: 24% of those working with a CFP professional strongly agree that they are successful in sticking to their financial strategies, compared to 12% of those working with any financial professional and 6% of those not working with a professional 3

4 Singapore Results Financial Landscape Outlook (% Strongly agree) I am confident that I will achieve my financial life goals I am successful in sticking with my financial strategies I am knowledgeable about financial matters Vs. global results 13% -9 9% % -6 Owning your own home 60% 8 Priorities (Top 5, Very important ) Being free of major financial debt 58% 3 Being free of common consumer debt Being prepared for an unexpected financial emergency Building savings or an ''emergency'' fund 57% 3 56% 4 55% 4 4

5 Singapore Results (continued) Barriers to pursuing (Top 5 selected) Services of interest (Top selected) Financial Professionals (%) Financial Planning I don't know whom to trust 72% 6 Too much work/paperwork 69% 13 It is too confusing 68% 13 It's just too complicated 66% 9 Fees/costs are not worth it 64% 5 Planning for retirement 58% 8 Investment planning 48% 10 Budgeting / cash flow / debt management Have considered using / Have used (net) 42% 6 79% 7 Currently use 58% 13 Very satisfied with this professional 23% -19 Currently use CFP professional 10% 1 Very satisfied with their CFP professional Vs. global results 24% -33 5

6 Singapore Results (continued) CFP Designation (%) CFP Awareness & Messaging Awareness of Certified Financial Planner designation Vs. global results 42% 10 Come up with a long-term plan 54% -2 Trusted source of advice 54% -4 Messaging (Top 5, Major reason ) Help to simplify and explain financial matters 53% -3 Provide peace of mind 53% -2 Help save you money 52% -6 6

7 1 in 10 currently work with a CFP professional Private Banker / Bank relationship manager Certified Financial Planner or CFP professional Some other similarly qualified professional Experience with Local Financial Professionals Net Any Insurance agent Independent Financial Advisor Stock Broker Lawyer Chartered Financial Analyst or CFA Certified Public Accountant or CPA 4% 10% 5% 7% 1% 5% 1% 4% 1% 8% 13% 7% 6% 2% 17% 23% 28% 22% 15% 18% 21% 25% 22% 27% 24% 31% 43% 55% 58% 58% Considered Using Currently Use Use as Primary Financial Professional 7

8 Those seeing a financial professional generally feel a little better prepared Consumers currently working with a CFP professional tend to express even more financial confidence Financial Assessment (Strongly agree) I am successful in sticking with my financial strategies I am confident that I will achieve my financial life goals I consider myself knowledgeable about finance and financial matters 24% 12% 6% 23% 13% 13% 19% 12% 9% Currently working with a CFP professional Currently working with a financial professional Not currently working with a financial professional 8

9 High levels of satisfaction with financial professionals, including CFP professionals Currently working with A CFP professional Any financial professional Level of satisfaction with primary financial professional Very satisfied Somewhat satisfied Not satisfied (very / somewhat dissatisfied) 24% 23% 70% 68% 6% 10% % Very satisfied with financial planning steps Professional has Clearly defined the relationship Gathered financial data, discussed goals and concerns Evaluated financial status Developed a personalized plan with recommendations Worked with you to implement the plan Monitor progress and make adjustments as needed 30% 22% 36% 25% 28% 23% 24% 22% 31% 22% 20% 20% 9

10 CFP professionals earn higher excellent ratings on many key characteristics compared with those who use any financial professional Give primary advisor an Excellent rating Honesty and integrity 44% 31% Giving me personalized service 24% 38% Placing my interests first 32% 21% Following through 32% 21% Easily accessible 32% 27% Helping me keep on track 29% 18% Being up-front and transparent 29% 24% Attentiveness 29% 24% Providing relevant and timely info 25% 22% Helping me make actionable plans 23% 19% Using plain language not financial jargon 22% 23% Understanding my needs and goals 21% 22% Currently working with A CFP professional Any financial professional 67 v. 40 Average number of minutes spent with primary advisor in a given year 10

11 LOCAL QUESTIONS: SINGAPORE 11

12 Roughly 2 in 3 consumers would pay a maximum of SGD 500 for financial planning services Maximum amount of money/fees willing to be paid for financial planning services Over SGD 1,500 SGD 1,001-1,500 SGD 501-1,000 4% 6% 22% SGD 500 or less 68% 12

13 APPENDIX: GLOBAL RESULTS 13

14 Just one in five are very confident that they will reach their financial life goals I am confident that I will achieve my financial life goals (% Strongly agree - by market) Brazil 65% South Africa 38% Global Total (% Strongly agree) 22% Indonesia The US Malaysia Austria 22% 28% 25% 38% I am confident that I will achieve my financial life goals Canada Switzerland New Zealand Germany Hong Kong Netherlands Ireland 21% 21% 20% 20% 19% 18% 17% Australia 16% The UK 15% France Singapore 15% 13% South Korea China 2% 10% 14

15 One in five feel very successful in sticking to financial strategies Global Total (% Strongly agree) I am successful in sticking with my financial strategies 19% I am successful in sticking with my financial strategies (% Strongly agree - by market) Brazil South Africa Switzerland The US Germany Austria Indonesia Canada Netherlands New Zealand Ireland Malaysia Hong Kong The UK Australia France Singapore South Korea China 27% 27% 25% 25% 25% 23% 21% 21% 18% 18% 17% 17% 17% 16% 15% 9% 7% 2% 37% 15

16 Fewer than one in five feel very knowledgeable about financial matters I am knowledgeable about finance and financial matters (% Strongly agree - by market) Global Total (% Strongly agree) I am knowledgeable about finance and financial matters 17% Brazil South Africa Netherlands The US Hong Kong Germany Canada Switzerland Malaysia Indonesia Ireland Austria The UK France Australia New Zealand Singapore South Korea China 33% 27% 25% 23% 20% 19% 18% 18% 17% 17% 17% 17% 15% 15% 14% 13% 11% 7% 2% 16

17 Being free of major financial debt ranks in the top two among all but five markets New Zealand Singapore % Saying very important Australitria Brazil ada China France many Kong onesia Ireland sia lands land Africa Korea UK US Aus- Can- Ger- Hong Ind- Malay- Nether- Switzer- South South The The Total Being free of major financial debt Being free of common consumer debt Owning your own home Being prepared for an unexpected emergency Building savings or an ''emergency'' fund Retiring in the lifestyle that you want to Successfully managing your finances to achieve life goals Being able to support financially the people you care about Making sure your investments 43 are profitable Having sufficient funds to make major purchases Paying for education Reducing the impact of taxes Leaving a good sized inheritance Financial Priorities Orange numbers represent one of the top-two selections per market 17

18 Retirement planning ranks first in all but five markets and is in the top two in all but one market % Total Brazil China France Hong Kong Australia Austria Canada Germany Indonesia Ireland sia Malay- Netherlands Planning for retirement Investment planning Budgeting / cash flow / debt management A complete financial roadmap including many of the above Insurance services and planning / risk management Assistance with financial products Tax planning / planning to reduce the family's tax bill Assistance with defining and setting financial goals Financial Planning Services of Interest New Zealand Singapore Switzerland Estate planning South Africa South Korea The UK The US Orange numbers represent one of the top-two selections per market 18

19 Being a trusted source of advice or cost savings rank in the top two reasons in all but three markets Hong Kong Australia Austria Canada Germany Indonesia Ireland sia Malay- Netherlands % They Total Brazil China France Are a trusted source of advice Help save you money Come up with a long-term plan that is tailored to your needs Help to simplify and explain financial matters New Zealand Singapore Switzerland Give you peace of mind Adhere to a rigorous code of ethics and put their clients' interests first Research the entire market and make recommendations Help establish financial goals and put plans in place to achieve them Give you confidence in making investment decisions Spot new and emerging investment opportunities Help save you time Can manage global and local investing needs Reasons to Work with a Financial Professional South Africa South Korea The UK The US Orange numbers represent one of the top-two selections per market 19

20 Trustworthiness of financial professionals is the leading consideration across all markets New Zealand Singapore % Saying very important Australitria Brazil ada China France many Kong onesia Ireland sia lands land Africa Korea UK US Aus- Can- Ger- Hong Ind- Malay- Nether- Switzer- South South The The Total Trustworthiness Reputation of financial advisor Experience / seniority Level of service offered Works at a reputable company / firm Education / certifications / qualifications Is a CFP professional Presentation style / personality of financial advisor Size of financial advisor's portfolio Considerations when Choosing a Financial Professional Orange numbers represent one of the top-two selections per market 20

21 Not knowing whom to trust ranks first in all but three markets Barriers to Financial Planning % Saying strongly/somewhat agree Total Brazil China France Hong Kong Australia Austria Canada Germany Indonesia Ireland sia Malay- Netherlands I don't know who to trust Fees/costs are not worth it I don't know where to start I can't afford it It's just too complicated Too much work/paperwork It is too confusing I am too busy I don't believe I need a financial plan I'll do it when I'm older New Zealand Singapore Switzerland South Africa South Korea The UK The US Orange numbers represent one of the top-two selections per market 21

22 Majority of global consumers lack a comprehensive written financial plan 32% Yes No Not Sure Have a Comprehensive Written Financial Plan (Global Total) 57% 10% Have a Comprehensive Written Plan (% by market) Indonesia Brazil China Malaysia Hong Kong The US France South Africa Singapore Canada Germany Switzerland South Korea Australia Netherlands The UK Ireland New Zealand Austria

23 Awareness of the CFP designation is highly variable by country % Total Brazil China France Hong Kong Australia Austria Canada Germany Indonesia Ireland sia Malay- Netherlands New Zealand Singapore Switzerland South Africa South Korea The UK The US Aware of CFP designation? Yes No CFP designation is the only globally recognized mark of professionalism for financial planners (among those aware of CFP professionals) Agree Disagree Don't know/not sure

24 More than four in 10 do not understand the financial planning fee structure Charges a fee for services 38% Would prefer to work with a financial adviser who (Global Total) 18% Charges a commission 44% Not Sure Would prefer to work with a financial adviser who (% by market) Indonesia Brazil The US South Africa Malaysia China The UK Ireland South Korea Hong Kong Switzerland Australia Canada Germany Netherlands Singapore New Zealand France Austria

25 Another four in 10 are unsure if financial planning is regulated % Total Brazil China France Hong Kong Australia Austria Canada Germany Indonesia Ireland sia Malay- Netherlands New Zealand Singapore Switzerland South Africa South Korea The UK The US Is financial planning regulated? Yes No Not sure How important is it that financial planning be regulated? Very/Somewhat important Very important Somewhat important Not too/not at all important Not too important Not at all important

26 Friends and family rank in the top two in all but two markets % Total Brazil China France Hong Kong Australia Austria Canada Germany Indonesia Ireland sia Malay- Netherlands Friends and family Websites online A financial planner Other professionals (such as an accountant or personal banker) Information Sources Rely on for Financial Matters & Planning New Zealand Singapore Switzerland Newspapers and magazines TV programs Social media sites South Africa South Korea The UK The US Orange numbers represent one of the top-two selections per market 26

27 APPENDIX: SINGAPORE DEMOGRAPHIC PROFILE 27

28 Singapore Demographic Profile Unweighted Weighted Count Percentage Total n= % Age % % % Gender Male % Female % Education Some college or more % Secondary or less % Income High % Middle % Low % Investable Assets Top 40% (approx.) % Bottom 60% (approx.) % Work with Financial Professional Any % CFP professional % 28