HSBC has just released its 2024 Quality of Life survey exploring what a good quality of life means for affluent individuals across different generations; it investigates the relationship between physical and mental wellness, as well as financial fitness.

HSBC's latest Quality of Life survey highlights how Asia’s affluent are focusing on financial security and protection needs amid concerns about health and rising living costs.They pinpoint the rising cost of living and health concerns as the main threats to their life goals.

The study, which shows how health and wealth increasingly intersect, covers more than 11,000 affluent individuals in 11 markets worldwide with investable assets of $100,000 to $2 million, aged between 25 and 69. The survey was conducted by Intuit Research on behalf of HSBC from 4 to 20 March 2024. Markets surveyed include mainland China, Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore, Taiwan, the United Arab Emirates, the UK and the US.

The report shows that four in 10 affluent individuals in Asia are not on track to meet their retirement goals, highlighting a gap in planning for the future.

It also reveals that 23 per cent of affluent globally lack adequate healthcare coverage, with regional disparities such as 29 per cent in Hong Kong compared with 9 per cent in Indonesia. However, Gen Z and Millennials are starting to invest up to a decade earlier than Baby Boomers, investing 27 per cent of their income on average, and monitoring their portfolios more frequently. While eight in 10 affluent individuals globally find it essential, only three in 10 in Asia have created a will or succession plan, the survey states.

The study also reveals a global concern that the increasing cost of living (expressed by 68 per cent of respondents) and the impact of inflation on savings (61 per cent) could impact life plans. Respondents in Asia are also focused on health-related risks, including rising healthcare costs (54 per cent) and the impact of physical (60 per cent) and mental (44 per cent) health conditions.

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 per cent) and planning for retirement (43 per cent) as their top two financial goals, closely followed by having sufficient insurance coverage (41 per cent).

The study underscores the importance of having a holistic approach to financial planning. Those who address a broad range of financial needs and objectives report 50 per cent higher life satisfaction.

“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 wellbeing,” Kai Zhang, general manager and head of wealth and personal banking, South and Southeast Asia, 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,” Jenny Wang, global and Asia head of personal banking and premier wealth solutions, investments and wealth solutions, HSBC added. “But, as this research demonstrates, the upsides to comprehensive financial planning are manifold, including greater life satisfaction.”