With an increasing number of advertising campaigns, launched by insurance companies and financial institutions promoting their services to people of all ages, Hongkongers are now embracing the idea of financial planning much more than they did a decade ago.
'Hong Kong has faced different scales of financial turbulence since the handover and I believe that might have taught people the importance of having a sound financial plan in place in case of further unexpected economic turmoil,' said Andrew Fung Hau-chung, Hang Seng Bank's deputy general manager and head of investment and insurance. 'People are now more receptive to financial planning, especially those older than 35.'
But with so many products available, financial planners need to have a thorough understanding of their customers' needs before agreeing on a plan that meets their specific requirements.
Alan Tsang Hing-lun, AMTD Financial Planning's director and chief executive, said: 'It is vital for the financial planner to understand the needs of the individual customers and their expectations. Different age groups have different objectives and the level of risk they take can also differ.'Fresh graduates, affluent young to middle aged people, families and retirees are the four major customer groups that financial planning service providers usually target.
But according to some financial planners, most investors do not know what specific products would best meet their needs, only that they want a high return within a given period of time.
Paul Cho King-pak, Altruist Financial Group's vice-president, said: 'Based on our studies, we have gathered that fresh graduates and affluent young to middle aged people, who have shown interest in financial planning services, are primarily looking for some kind of lifestyle to which they aspire and would like to realise their dreams through investment.'
'Retirees and families are geared more towards family protection (in case there are major illnesses), establishing an education fund for their children and for saving purposes. But when they were asked about any specific products they favoured, most of them could not answer.'