Australian parents confident about the future
Slightly over a quarter (26 per cent) of Australians believe their children will become high income earners by the time they hit their 40s.
Sixty-six per cent of parents in Sydney expect their children to be middle income earners, and only 8 per cent think their children will be struggling on a low income by the time they are 40.
The Wealth Perception Survey - carried out by Nielsen on behalf of Fidelity Worldwide Investment - surveyed 5,186 respondents in 10 cities across Asia.
Australians who expect their children to be high or middle income earners put it down to their good education (68 per cent), an expectation that they will work hard (63 per cent), and their sound financial knowledge (45 per cent).
Australians appear to have higher expectations for their children than parents in Taiwan, South Korea, Hong Kong and Japan - but they are lagging India, where a staggering 76 per cent of parents believe their children will grow up to be high income earners.
Forty-eight per cent of Chinese parents and 38 per cent of parents in Singapore believe their children will earn high incomes.
The survey found there was "widespread confusion" across the Asian cities surveyed when it came to income status.
Eighty-six per cent of Asians are unable to identify their income rank effectively, according to the survey.
"These misperceptions about income rank are likely to affect spending, saving and investment decision-making, with significant implications for financial wellbeing and posing major risks for investors," said the report.
Recommended for you
An FAAA recommendation to make PY advisers subject to non-compete clauses would place candidates in a “hostage situation” with their employer and potentially deter new entrants, say commentators.
While the profession struggles to keep up with strong consumer demand, a third of people who have passed the ASIC adviser exam aren’t actively practising, so where is this missing third?
Half a year after Count Financial told its advisers to exit several Metrics Credit Partners funds, research house Lonsec has now downgraded two of these products over governance concerns.
As the advice industry evolves with technology, two business consultants have said successful advice firms will be those which focus on delivering an “experience” for their clients, beyond just a transactional service.
