Wealthy Individuals Expect to Become Millionaires by Age 60

SC First Bank Surveys 1,000 Wealthy Residents in Seoul and Busan

[Asia Economy Reporter Kim Min-young] The highest expected net asset per individual that Korean asset holders are anticipated to accumulate through savings and investments is an average of $1.4 million (KRW 1.57 billion). The age at which individuals are likely to become millionaires by steadily growing their assets was found to be '60 years old.'

SC First Bank, together with its parent company Standard Chartered (SC) Group, conducted a survey last year targeting 1,000 asset holders residing in Seoul and Busan to investigate their savings and investment habits, and announced the results on the 13th.

According to this survey, the expected net asset per individual at the peak age of 60 is estimated to be approximately KRW 1.57 billion. Net assets include cash, real estate, land, etc., excluding liabilities.

The expected asset levels by detailed tiers within Korea's asset holder groups are projected as follows: emerging affluent at $404,000 (KRW 451.81 million), affluent at $819,000 (KRW 915.93 million), and ultra-affluent at $2.986 million (KRW 3.33939 billion).

Regarding the top financial goals that domestic asset holders aim to achieve through savings and investments (multiple responses allowed), emerging affluent prioritized children's education (25%) and land acquisition (22%), affluent focused on investment asset acquisition (22%) and land acquisition (22%), while ultra-affluent emphasized land acquisition (31%) and retirement preparation (29%).

For financial products used to achieve these financial goals (multiple responses allowed), emerging affluent and affluent groups mainly relied on traditional savings products such as demand deposits (56%, 47%) and time deposits (61%, 46%), whereas the ultra-affluent used a diverse range of financial products, including savings products, with significant weight.

Differences were also observed among the asset holder tiers in behaviors related to receiving financial advice or obtaining investment information (multiple responses allowed). Emerging affluent showed the highest dependence on bank or financial company websites (35%), while affluent (38%) and ultra-affluent (39%) actively utilized asset managers and investment experts. Notably, the ultra-affluent showed a significant gap from other tiers in their use of online forums or blogs (35%) and newspapers/magazines (31%).

Regarding the use of online financial products and services (multiple responses allowed), emerging affluent (41%) and affluent (38%) primarily relied on bank websites or mobile applications (apps), whereas the ultra-affluent had the highest utilization of online securities brokers (48%) and social trading (39%).

When asked about the most important factors for quality of life and happiness (multiple responses allowed), all detailed asset holder groups prioritized economic stability (47-53%) and maintaining health (41-43%).

Jang Ho-jun, Vice President of Retail Banking at SC First Bank, stated, “The expected assets of domestic asset holder groups projected in this survey were calculated by analyzing current income levels and savings and investment patterns, and fall short of the actual financial needs in old age. This also appears to be due to a cautious attitude toward financial investments compared to investors in other countries. SC First Bank will be a trusted partner that prepares for customers’ stable retirement through advanced asset management services that comprehensively reflect customers’ income, needs, and financial goals.”

This content was produced with the assistance of AI translation services.