Standard Chartered Bank releases Wealth Expectancy Report 2019, Know in details

The Standard Chartered Bank has released a new report titled 'Wealth Expectancy Report 2019', which reveals that with a wealth expectancy of 63.6 million shillings (USD 626,421) many Kenyans will fall short of their aspirations.

The report by Standard Chartered Bank reveals that by 60 years of age, 66 percent of Kenya's savers will be less than half way to achieving their wealth aspiration, while almost a third (32 percent) will be more than 80 percent away from their target.

Standard Chartered's new report, which examines the saving and investment habits of 10,000 emerging affluent, affluent and high-net-worth individuals across 10 fast-growing economies, reveals a universal challenge. It states that people's aspirations outstrip their 'wealth expectancy', or their total net wealth at age 60. This compares to a global trend where nearly six out of 10 people on average across the markets surveyed are facing a 'wealth expectancy gap' of 50 percent or more.

According to the report, the average wealth expectancy of Kenyans with enough disposable income to save and invest is 63.6 million shillings (USD 626,421) or 45.3 million shillings (USD 447,444) for the emerging affluent, 68.4 million shillings (USD 676,137) for the affluent and 77.2 million shillings (USD 765,626) for high-net-worth individuals.

On average, this would give people in Kenya 222,000 Kenya shillings(USD 22,000) to live on per month during retirement, much less than both their current income and their wealth aspiration. "If they were to spend at the average monthly rate to which they aspire, their wealth expectancy would last the emerging affluent 6 years, the affluent 8 years of retirement, while HNWIs would be able to fund 5 years," the report states.

"Identifying as high net worth or affluent now is not an indicator of being able to achieve your wealth aspiration in future. With 56 per cent of savers in our study looking set to be disappointed with their financial situation when it comes to retirement, the time to take action is now," Edith Chumba, Head of Retail Banking at Standard Chartered Kenya said.

"Financial institutions have an important role to play, starting with an understanding of their clients' needs, so that they can educate and empower them to manage their wealth in line with their aspirations," she added.