- 4 in 10 in Asia are off-track for retirement goals
- 8 in 10 worldwide say legacy planning is essential, but only 3 in 10 in Asia have created a will or succession plan
- HSBC Quality of Life Index: Hong Kong and Singapore bounce back with biggest gains in 2024 amidst global decline in financial fitness; India, Indonesia top Index
HSBC’s latest Quality of Life survey shows Asia’s affluent are prioritising their financial security and protection needs amid concerns about living costs and health-related factors.
The study of over 11,000 affluent individuals in 11 markets worldwide reveals global worry that the increasing cost of living (expressed by 68% of respondents) and the impact of inflation on savings (61%) could impact life plans. But respondents in Asia are also focused on health-related risks, including rising healthcare costs (54%) and the impact of physical (60%) and mental (44%) health issues.
These concerns are reflected in the financial priorities of Asia’s affluent. Consistent with their non-Asia peers, Asia respondents ranked ‘gaining wealth for financial security’ (46%) and ‘planning for retirement’ (43%) as their top two financial goals, closely followed by ‘having sufficient insurance coverage’ (41%).
However, the survey also reveals gaps in planning:
Healthcare protection
- 38 per cent of affluent globally say having sufficient insurance coverage is a top financial goal – up from 31 per cent in 2023 – but 23 per cent still do not have adequate healthcare protection. In Hong Kong, the figure climbs to 29 per cent versus 9 per cent in Indonesia.
- In Asia, one in four Gen Xers believes that they lack adequate health coverage, compared to one in five Gen Z and Millennials.
Retirement planning
- 42 per cent of affluent individuals in Asia do not feel prepared for retirement, with those in Hong Kong (47%), mainland China (55%) and Taiwan (51%) feeling less prepared than those in other markets.
- Gen Xers are less likely than other generations to have a comprehensive retirement plan, while for Baby Boomers, three in ten are still behind on their savings goals and more than a quarter lack a plan.
Wealth accumulation
- Affluent investors globally allocate nearly 32 per cent of their portfolios to cash, but those planning to rebalance their portfolios within the next year say they will invest 54 per cent of this cash, on average.
- Gen Z and Millennials, on average, start investing up to a decade earlier than Baby Boomers, invest a higher proportion of their income (27%), and monitor their portfolios more frequently.
- 34 per cent of affluent investors in major international wealth centres plan to invest more outside their home markets, with the United States and mainland China the top two destinations.
Legacy planning
- Most affluent individuals (79%) believe that early planning is crucial for passing on their legacy, but fewer than four in ten created a will or succession plan.
- Affluent in Asia (33%) are even less likely to have created a will or succession plan than those outside of the region (43%), although Malaysia (47%) leads all markets.
- Around one third of Baby Boomers (35%) acknowledge the need to start planning but have yet to do so, underscoring an intention-action gap as more respondents overall prefer to start transferring during their lifetimes than upon their passing (45% versus 37%).
Commenting on the findings, Kai Zhang, General Manager and Head of Wealth and Personal Banking, South and Southeast Asia, HSBC said: “These findings highlight the interconnectedness of financial and health challenges, revealing how deficiencies in one area can impact the other. This underscores the necessity of an integrated approach to managing wealth and health, as the way we plan our financial futures significantly influences our overall well-being.”
Kai Zhang, General Manager and Head of Wealth and Personal Banking, South and Southeast Asia, HSBC
The study also reveals a connection between how people plan their financial futures and their life satisfaction. The data show that those who address a broad range of their financial needs and objectives in their planning are, on average, 50% more satisfied with their lives. Moreover, nine in ten of those who take a comprehensive approach to financial planning – encompassing protection, wealth accumulation, retirement, and legacy objectives – feel satisfied with their lives. In contrast, only six in ten of those with a narrower focus feel the same way.
Jenny Wang, Global and Asia Head of Personal Banking and Premier Wealth Solutions, Investments and Wealth Solutions, HSBC said: “It’s clear from these results that many people remain underprepared financially for critical milestones, whether it’s funding their child’s education, enjoying retirement, or passing their legacy to the next generation. But, as this research demonstrates, the upsides to comprehensive financial planning are manifold, including greater life satisfaction. At HSBC, we are enhancing our needs-based approach to financial planning with an exciting new digital tool to help our customers bring greater structure to their life plans. Stay tuned.”
Jenny Wang, Global and Asia Head of Personal Banking and Premier Wealth Solutions, Investments and Wealth Solutions, HSBC
About HSBC Global Quality of Life Report 2024
HSBC published the first Global Quality of Life Report in 2023. The report explores what a good quality of life means for affluent individuals across different generations and investigates the relationship between physical and mental wellness, and financial fitness. The HSBC Global Quality of Life 2024 builds on these themes, examining changes over the past year and delving deeper into attitudes, priorities, and behaviours specific to retirement, healthcare protection, wealth accumulation, legacy planning, and international education. The research was conducted by Intuit Research (www.intuit-research.com), on behalf of HSBC from the 4th to 20th March 2024. A total of 11,230 affluent individuals with investable assets of USD 100,000 to 2 million were surveyed via online access panels. Respondent criteria: aged 25-69; financial decision makers for themselves; have invested in financial products. Markets Surveyed: mainland China, Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore, Taiwan, United Arab Emirates, United Kingdom and the United States of America.
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn at 30 June 2024, HSBC is one of the world’s largest banking and financial services organisations.
