MassMutual Asia Announces “Study on the post-80s/90s” Survey Findings
Average Rating of Confidence Level in Realizing Dreams is only 5.9. One out of
Seven Young People is “Moonlight Clan”

July 9, 2013  Hong Kong

During the first quarter this year, MassMutual Asia Ltd (MassMutual Asia) commissioned the Public Opinion Programme of the University of Hong Kong to conduct a telephone survey to zoom in on the post-80s/90s generation to understand their dreams and their spending and savings habits, as well as their career-planning priorities. 
The results revealed that 34% of respondents have the dream of buying their own home, while other major dreams include “having a dream job/owning a business” (18%), “having more money” (12%) and “travelling around the world” (11%). However, the average rating of the confidence level of young people in realizing their dreams is merely 5.9 out of 10. Although over 90% of respondents have their own dreams, they don’t have much confidence in realizing them. As a matter of fact, having good spending and savings habits, and proper career planning, dreams may be realized much earlier.  
In terms of spending habits, the survey revealed that 59% of respondents “compare the price before they buy”, 21% of them “buy when it’s on sale”, and 18% of them “buy at first sight”.  Some 70% of respondents indicated that “practicality” was the key factor affecting their decision to consume, with other factors including “price”, “style”, “brand” and “trend”. Although most young people’s spending patterns and habits appear to be rational, survey findings indicate that one out of three respondents purchased an item in the past twelve months but have never used it. The implication is that young people may not make purchases based on actual need. In fact, by saving the money spent on a cup of coffee that costs some $30 every day, around $400,000 (in present value) will be saved in thirty years.
The survey also studied the way young people manage their money. 66% of respondents had the habit of “spending as planned”, however, about one-fifth of them admitted that they mostly overspend compared to what they have planned, whilst 6% of respondents indicated that they would “spend before saving”. Survey findings revealed that only 27% of them would “save before spending”. In addition, the survey findings revealed that one out of seven respondents represents the so-called “Moonlight Clan”, as they spent as much as they earned monthly, or even spent more than they earned. Overall, young people allocated 27% of their income to “everyday spending”, 27% to “support their family”, 25% to “savings” and 11% to “Investments”. For those who made regular savings and investments, the monthly median amount was $4,000 and $2,000 for savings and investments respectively. Take saving $1.2 million for the down payment of buying a home as an example. By contributing $6,200 each month to an investment plan, assumed the annual rate of return is 9%, it will take just ten years to achieve the financial goal. On the other hand, with the same amount contributed to a savings plan, assumed the annual rate of return is 3%, it will take four more years to achieve the financial goal, i.e. 14 years. In fact, the results revealed that some 40% of respondents did not make any investments at all. Under the current low-interest rate environment, it is difficult to protect savings from being eroded by inflation.
In addition, the survey studied the respondents’ satisfaction level with their current job, the average rating was 6.3 out of 10. The three key areas of dissatisfaction include: “low income” (42%), “long and inflexible working hours” (33%) and “unclear promotion requirements” (17%). The key factors for a dream job include: “reasonable income, with rapid growth” (61%), “work-life balance” (34%) and “clear promotion requirements and opportunities” (26%).
Ms Jeanne Sau, Senior Vice President & Chief Marketing Officer, MassMutual Asia, said, “Although the survey findings revealed that most young people tend to spend rationally, wastage after purchase remains a quite common phenomenon. With mobile information services in Hong Kong becoming more popular than ever before, e-shopping increases the opportunity to purchase. As such, one should have a clear idea whether the purchase to be made is based on a “real need” or a “fancy”.
Ms Sau recommends that young people should think twice before spending and develop the habit of “save before spending”. Learning how to invest is of paramount importance. Young people should take advantage of their relatively longer “wealth-accumulation period”, so as to benefit from the compound-interest effect through long-term investment. Ms Sau suggests young people seek advice from professional financial advisors who can provide a detailed financial analysis to help them better understand their financial needs. In addition, a regular-premium financial planning solution can help young people maintain a disciplined saving habit and is instrumental in achieving long-term financial goals.
In terms of career planning, Ms Sau encourages young people to adopt a proactive attitude to map out their career path. Finding an industry or a job that provides better career development prospects to turn around a stagnant career may help realize one’s dreams earlier.
MassMutual Asia Ltd. is a member of the MassMutual Financial Group. Headquartered in Hong Kong, MassMutual Asia has over two thousand consultants. The company delivers professional one-stop risk- and wealth-management consulting services, including a series of flexible and innovative life insurance products, retirement plans, and investment services. Besides the life insurance business, MassMutual Asia also operates several subsidiaries in Hong Kong, including MassMutual Trustees Ltd., which focuses on MPF, and MassMutual Insurance Consultants Ltd., which handles general insurance.
MassMutual Financial Group is a marketing designation for the Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliates. With US$508 billion1 in assets under management and 13 million customers, MassMutual Financial Group is a global, growth-oriented and diversified financial-services organization. Established in 1851, MassMutual enjoys exceptionally high financial ratings from major ratings agencies, including A.M. Best Company ‘A++’ (Superior; top category of 15), Fitch Ratings ‘AA+’ (Very Strong; second category of 21) and Standard & Poor's ‘AA+’ rating (Very Strong; second category of 21)2 and is ranked in the renowned FORTUNE 500 as one of the ‘Five Largest US Life Insurance Companies’3.


Ms Jeanne Sau, Senior Vice President & Chief Marketing Officer, MassMutual Asia announces “Study on the post-80s/90s” Survey Findings, together with two young financial consultants Ms. Gara Wong and Mr. John Tang to share various aspects about the post-80s generation.

1.Figure as of December 31, 2012.
2. Ratings apply to Massachusetts Mutual Life Insurance Company and its subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company. Ratings are as of July 1, 2013 and are subject to change.
3. Ranked according to the aggregate results of “Insurance: Life, Health (Mutual)” and "Insurance Life, Health (Stock)" on the total revenues for 2012, based on the FORTUNE 500 as published on May 20, 2013.

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MassMutual Asia Ltd. is not a subsidiary or a group company of Massachusetts Mutual Life Insurance Company.