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HSBC Quality of Life 2024 study: 5 in 10 affluent individuals plan to work in old age
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Lanny Hendra, Wealth and Personal Banking Director at HSBC Indonesia (center); Sumirat Gandapraja, Head of Networks Sales and Distribution HSBC Indonesia (right); and life coach Muara Makarim pose for a photograph after a talk show and media briefing on the HSBC Quality of Life study in Jakarta on Nov. 7. The study focused on “exploring the definition of a quality life” and “the strong connection between financial health, mental health and physical fitness among affluent customers”.
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he HSBC Quality of Life 2024 study found that affluent customers in Indonesia considered funds of Rp 5.37 billion (US$340,000) to be the ideal amount to enter retirement.
Concerns about rising living expenses, healthcare costs and a desire to maintain their current quality of life has prompted the majority of Indonesia’s affluent individuals to keep working past the typical retirement age, according to a study released by HSBC Quality of Life 2024.
The outcome of the HSBC Quality of Life 2024 study was released during the Insight Day at HSBC Indonesia Office in Jakarta on Nov. 7. The Insights Day also featured a talk show featuring HSBC Indonesia Head of Network Sales and Distribution Sumirat Gandapraja and Muara Makarim, a life coach.
Meanwhile, data from the World Health Organization (WHO) states that preventing financial uncertainty is one of the keys to maintaining mental health and physical fitness in old age.
In line with this, the HSBC Quality of Life 2024 research also finds that affluent customers in Indonesia prioritize retirement planning as one of the top three goals in their current financial plans.
However, 32 percent of affluent customers in Indonesia are still off track in terms of comprehensive retirement planning. This is because of uncertainty about the required retirement funds.
The HSBC Quality of Life 2024 research has found that affluent customers in Indonesia consider funds of US$340,000 or Rp 5.37 billion to be the ideal amount to enter retirement.
Interestingly, the survey has found that five out of 10 affluent individuals in Indonesia plan to continue working in old age.
The plan to continue working during retirement is related to concerns about a number of things, according to the survey.
“The biggest concern for affluent customers is not having enough funds to deal with declining physical health and rising healthcare costs. They are also worried that inflation will erode the value of their retirement funds that have been accumulated to enjoy a comfortable retirement, especially for those who choose to educate their children abroad,” the study said.
The HSBC Quality of Life 2024 research focuses on exploring the definition of quality life and the strong connection between financial health, mental health and physical fitness, and was conducted through online surveys in 11 countries. The survey involved 11,000 individuals with investable assets ranging from $100,000 to $2 million.
The research shows that affluent customers in Indonesia achieve Quality of Life Index scores of 81, higher than Singapore (74) and the United States (73).
Lanny Hendra, Director of Wealth and Personal Banking at HSBC Indonesia, said, "The HSBC Quality of Life 2024 research shows that affluent customers in Indonesia have a gap between their aspirations and readiness regarding their retirement plans. Although considered a priority, other aspirations such as sending children to study abroad, global economic pressures and the rising cost of living can be the derailing aspects of their retirement plans.”
HSBC aims to help customers in designing comprehensive and sustainable financial plans. This approach is not only aimed at meeting current wealth accumulation needs but also at providing peace of mind for the future in accordance with the plans that have been set.
According to Lanny, retirement planning services allow customers to maintain their lifestyle in old age, reduce financial stress, become financially independent and simultaneously improve mental health by feeling calmer, safer and happier because of financial security in the future.
Sumirat Gandapraja shared tips for building a retirement plan that will help improve quality of life in old age. He highlighted four crucial steps that customers should take.
First, start as early as possible. “The earlier you start retirement planning, the greater the opportunity to maximize investment growth and achieve financial goals,” he said.
According to a survey, 77 percent of Gen Z and Millennials who fall into the category of affluent customers are aware of the importance of retirement planning, but 50 percent do not have a comprehensive plan.
Second, develop a comprehensive plan. “Set retirement goals, calculate your financial needs and choose investment instruments that match your risk profile and retirement period,” he advised.
Third, evaluate and adjust regularly. “Financial conditions and life goals can change over time. Make sure to review and adjust your retirement plan periodically,” he said.
Fourth, seek professional help. “If you find it difficult to develop a retirement plan, consult with a professional financial planner to get proper guidance and advice,” he emphasized.
HSBC Premier
Addressing the gap between aspirations and reality regarding financial planning in the affluent segment, as revealed in this research, HSBC Premier presents financial solutions that cover three important pillars: wealth management, lifestyle and wellness and international education.
HSBC Premier's wealth management solutions prioritize planning and financial advice from professional relationship managers using the Financial Health Check tool.
This year, HSBC Indonesia, with its track record of experience, insight and technology supported by a global network, was again awarded Best Wealth Manager thanks to its strong mission and commitment to helping customers with comprehensive and sustainable financial planning.
HSBC Premier consistently develops financial services to support customers in their lifestyle and physical and mental well-being. Benefits received by HSBC Premier customers include special facilities such as a complimentary medical checkup every year. On the lifestyle side, HSBC Premier offers various benefits that support customers in travel. Support services such as domestic airport transfer up to 6 times a year and travel insurance up to Rp 10 billion and purchase protection up to Rp 300 million also provide peace of mind for customers.
With the support of an extensive international network, HSBC Premier customers from Indonesia can be identified in more than 30 countries.
This advantage is very helpful for parents who send their children to study abroad. Services such as opening an account in the destination country before departure and mobile banking with global view and global transfer features will provide peace of mind to parents because they can monitor all their accounts in various countries, and even send up to $100,000 per day in real time and free of charge.
Source:HSBC
