Parents in China, including Hong Kong, recognise the challenges of the AI era but are underprepared for their children's future development, according to a new survey by Prudential Hong Kong.
A press release by Prudential said that the findings of the survey "Prudential Life Planning for Children" revealed that over 70% of Hong Kong parents are yet to future-proof their kids despite challenges in the AI era.
The survey found that as the AI wave transforms the workplace, parents are concerned about their children's career prospects – yet nearly three-quarters have taken no action to prepare them for that.
The survey was conducted by Fudan University's International Institute of Finance in key cities across China. The results indicate that with the rise of AI across various industries, Chinese parents are increasingly worried about their children's career prospects.
Over two-thirds (68.4%) of surveyed parents believe it will become harder to predict and plan career paths, while 62.5% are concerned that AI will replace entry-level positions, creating significant hurdles for graduates in their job search. This reflects a deepening anxiety among parents over future uncertainties.
While 79.7% of parents believe that early preparation is essential for their children to navigate the AI era, nearly three-quarters (73.3%) have yet to take concrete steps, with the figure reaching 77.3% in Hong Kong. This highlights a significant gap between awareness and action among Chinese parents.
Prudential Hong Kong chief customer and marketing officer Ivan Choi said, “The survey reveals that while many parents are concerned about the potential challenges posed by AI in the future workplace, it is equally important to recognise the opportunities it offers. Success favours the prepared, and parents who aspire to build a solid foundation for their children should start long-term planning as early as possible."
In terms of education, more than half (56.8%) of parents intend to send their children abroad for studies or have made financial preparations to do so, with this figure rising to 80.4% in Hong Kong. However, among those who claim they have arranged finances for their children’s overseas education, a mere 14.3% have secured more than half of the required funds. In Hong Kong, this figure is only 17.4%. This stark contrast underscores a notable disparity between the aspiration for education and the reality of financial preparedness.
Also, the Chinese families face a gap between long-term financial reserves and actual needs, with less than half of parents having planned for wealth succession.
When it comes to mid-to-long term financial planning for their children, parents' preparations have fallen short of actual needs. For instance, the average funds allocated for supporting children's entrepreneurial ventures cover only approximately 31.2% of the required amount, while support for first-time home purchases and weddings stands at merely 29.1% and 28.9%, respectively.
This reflects a clear disparity between the financial reserves of Chinese families and their actual needs. Furthermore, less than half (45.5%) of parents have made dedicated financial plans for wealth succession, underlining a pressing need to enhance awareness of long-term asset inheritance.
Prudential Hong Kong chief product officer Felix Fung said, “From academic preparation to long-term wealth inheritance planning, it is essential for parents to plan ahead.”