HSBC recently released its Quality of Life Report, which explores the relationship between wealth and quality of life and assesses whether the link between the two can be measurably measured. Wealth is not just money, but important facts and factors related to our life goals, such as retirement, overall health, investments, and the legacy we all leave behind. This study examines the lifestyles and well-being of wealthy people of various ages in nine different markets.
This in-depth study explores the complex relationship between physical and mental well-being and financial health, providing insights into life goals, the importance of financial planning and preparation, and the changing dynamics of retirement. Offers. However, the first survey included in this report reveals that more than 50% of people expect to continue working after retirement.
A survey conducted revealed that the younger generation has a desire to retire earlier than their predecessors. However, with economic challenges associated with longer lifespans and other disabilities, 85% of respondents cited financial concerns as a key factor motivating them to take up some form of work after retirement.
The younger generation thinks differently than their predecessors. There is an innate desire to retire early and pursue life in a different direction. Many people have begun planning for retirement early in life, with the intention of relieving themselves from the demands of daily life, but they are unsure how to deal with economic challenges, such as the obstacles surrounding longer lifespans and financial concerns. Many people still don’t know what to do about it. The survey highlights that 85% of respondents identify financial concerns as an important factor motivating them to engage in some form of work after retirement.
Economic considerations include the need for financial stability, the ability to maintain a comfortable standard of living, and meeting financial responsibilities. In addition, a significant proportion of respondents mentioned broader motivations, such as staying socially engaged and physically active (70 percent), or improving skills and knowledge (51 percent).
Key findings of the report
All respondents had different definitions of life. Not everyone viewed health and wellness the same way. The ‘quality of life’ index relies on assessments across three fundamental dimensions: physical health, mental health and financial health, all three of which are closely intertwined. People who rated themselves as physically or financially healthy were significantly more likely to achieve above-average scores in terms of mental health. Individuals prioritize investing in their physical and mental well-being alongside their financial health in pursuit of a meaningful and high-quality life. People who scored high on physical health also showed strong mental health.
The study conducted a thorough investigation into people’s financial dreams, life decisions and future prospects, with the aim of securing and improving people’s quality of life. Other notable findings from the HSBC Quality of Life Report include:
- On average, Millennials hope to retire seven years earlier than Baby Boomers.
- The impact of continued economic uncertainty is clear, with 58% of respondents around the world prioritizing wealth accumulation to ensure financial security now and in the near future as their primary financial goal .
- More than a quarter of people plan to migrate at some stage to improve their quality of life.
- Less than half of survey participants have created a will, and 20% express uncertainty about how to begin the estate planning process.
Lack of financial preparedness is a concern
Although the majority of people are actively saving for retirement, more than half of survey participants feel financially inadequate at this stage of life. On average, there’s a huge 71 percent difference between the amount you actually save for retirement and the amount you think you’ll need.
In Hong Kong, individuals are expected to need the highest amount of savings to maintain a comfortable retirement lifestyle, with an estimated amount of $1.1 million. This is closely followed by Singapore at $936,000, mainland China at $929,000 and Malaysia at $829,000. Conversely, a respondent in India estimates that the minimum amount he needs for retirement is $302,000.
This disparity is widening as the cost of living continues to rise. A significant 42% of survey participants expressed concern about their savings being eroded by inflation, and 40% expressed concern about rising medical costs. It is worth highlighting that individuals living in Singapore and Hong Kong show particularly high levels of anxiety regarding healthcare costs, outpacing all other markets surveyed.
In addition to mental and physical health that promotes financial well-being, the study found that millennials focus on freedom and education along with work-life balance, while Gen Xers focus on planning for their retirement corpus. It turns out that factors such as travel expenses are taken into consideration. Baby boomers are more focused on health than other generations. The responses are more or less from other categories of respondents, categorized based on age, place of residence, etc. Respondents also consider other sources of income rather than relying solely on their own salary.
The mind and body are inseparably linked. The pursuit of a good education and financial health requires both. If one supports or influences the other, there is no hope for the future if any of the aforementioned elements are missing.
Women’s financial goals include retirement and buying a home
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