Top of main content

Paving your way to Quality of Life

18/09/2023

Key Takeaways

  • Quality of Life goes beyond meeting material needs. It encompasses multiple dimensions such as physical and mental wellness, and financial fitness. Neglecting any one of these areas can hinder overall well-being and satisfaction. 
  • It’s important to consider all the different dimensions of Quality of Life and actively work to address any gaps or areas for improvement. Taking proactive steps to enhance physical and mental wellness, and financial fitness can lead to a more balanced and fulfilling life. 
  • Rather than relying on generic savings plans, tailor financial plans to specific goals and aspirations. This includes considering a range of different financial products and investment options.

 

HSBC Quality of Life Report 2023

 

Quality of Life means different things. Each person's perception, and their reality, are entirely subjective. The HSBC Quality of Life Report, 20231 addresses this subjectivity. The survey-based Quality of Life Index considers the relative importance individuals assign to different dimensions and their self-assessment of how they score on each.

 

 

1HSBC and Bloomberg Media Studios conducted the HSBC Quality of Life Report, 2023 in nine markets globally with a total sample size of 2,250 individuals.

The data for this article is from the ~1,800 respondents in the survey with investible assets of between USD100,000 and USD2 million.

Building a balanced life: The crucial ingredients for Quality of Life

What does Quality of Life mean? Most respondents said "a healthy body and mind" and "financial security", ahead of "quality time with family", "travel and family vacations", and even "leading a happy and meaningful life". This is a recognition that physical and mental wellness, and financial fitness are foundational to being able to do the things that really matter to people. What is important to each person is subjective and for each of us to reflect on. When asked to score the importance of individual factors that contribute to Quality of Life, people on average allocated 64 points out of 100 to physical and mental wellness, and financial fitness combined. Accordingly, our HSBC Quality of Life Index is composed of these three dimensions.

Money may not buy happiness, but it undeniably contributes to mental wellness

Increasingly, our clients are taking a more holistic view of their well-being. We see a strong link between physical and mental wellness, and financial fitness where all three dimensions are interconnected and improvements in all three will drive an overall improvement in Quality of Life.

Lavanya Chari, Global Head of Investments and Wealth Solutions, Global Private Banking and Wealth, HSBC

 

There's a strong link between these three dimensions. Exercise is recognised as a sound investment in health. Recent research shows that exercise is more beneficial for conditions such as anxiety and depression than even psychotherapy or medications2.

From the Quality of Life Index, we find those who rate themselves as physically fit are 9.3 times more likely to score above average on mental wellness versus those who consider themselves physically unfit.

Despite the adage “money can’t buy happiness,” we’re all intuitively aware that financial security can improve peace of mind. There’s even scientific evidence that suggests money can buy peace of mind - up to a point. This conclusion is consistent with the Quality of Life Index. Those who rate themselves as financially fit are 4.3 times more likely to score above average on the mental well-being scale.

Boost your physical and mental wellness, and financial fitness to unlock Quality of Life

The Quality of Life Index for 2023 across all respondents stands at 75 out of a maximum 100 points. Individual dimension scores that contribute to the overall score are 82 for financial fitness, 73 for physical wellness and 70 for mental wellness.

Quality of Life Index by market

The Quality of Life Index across the nine different markets is 75. See how the markets breakdown below:

Plan for your specific financial goals and you’re more likely to achieve them

On average, individuals in the nine markets covered in our survey3 say they need USD1.17 million to have a good quality of life for the next 5 to 10 years.

Those living in Emerging markets4 are more aggressive in their financial goals than their peers in Developed markets for several reasons:

Individuals living in Emerging markets have more diverse sources of wealth, such as profits from businesses and rental income, versus those in the Developed markets who rely more on salaries.

The percentage of Emerging market individuals who want to invest to start or expand businesses (31%) is more than double the percentage for Developed markets (14%). Today, there are many start-up financing options available – from angel investors to crowdfunding, venture capital and business loans. Investigate and evaluate the pros and cons of each source to ascertain the most appropriate option for your circumstances.

Providing a good education for children is often a high priority. Parents in Emerging markets are more likely (31%) to view paying for education as an important financial goal, versus those in Developed markets (24%). Additionally, 10% in Emerging markets are even planning for their grandchildren’s education. If you plan to pay for your child’s education, put together an education savings plan that is based on a clear evaluation of the amounts required in each year, and the specific time frames involved.

3Respondents for the survey were individuals with investible assets of between USD100,000 and USD2 million.

4Developed markets covered were US, UK, Singapore and Hong Kong. Mexico, Malaysia, UAE, mainland China, and India were classified as Emerging markets.

Act for wellness, financial security, and your unique aspirations

It’s important to achieve a balance between physical and mental wellness, and financial fitness, to enjoy a higher Quality of Life. Wherever possible you should seek to diversify your income sources.

Do your own assessment of how you perform on the individual dimensions of Quality of Life and invest time and effort in addressing the gaps.

While money doesn't guarantee happiness, financial stability contributes to overall wellness. Work towards achieving financial fitness.

Tailor your financial plans for your specific goals and aspirations, rather than putting all your eggs in one basket. Review your financial goals and performance regularly, either with your financial adviser or by using one of the many online tools available.

For more information about Quality of Life Report, visit internationalservices.hsbc.com/qualityoflife

This document or video is prepared by The Hongkong and Shanghai Banking Corporation Limited (‘HBAP’), 1 Queen’s Road Central, Hong Kong. HBAP is incorporated in Hong Kong and is part of the HSBC Group. This document or video is distributed and/or made available by HSBC Bank Canada (including one or more of its subsidiaries HSBC Investment Funds (Canada) Inc. (“HIFC”), HSBC Private Investment Counsel (Canada) Inc. (“HPIC”) and HSBC InvestDirect division of HSBC Securities (Canada) Inc. (“HIDC”)), HSBC Bank (China) Company Limited, HSBC Continental Europe, HBAP, HSBC Bank (Singapore) Limited, HSBC Bank Middle East Limited (UAE), HSBC UK Bank Plc, HSBC Bank Malaysia Berhad (198401015221  (127776-V))/HSBC Amanah Malaysia Berhad (20080100642 1 (807705-X)), HSBC Bank (Taiwan) Limited, HSBC Bank plc, Jersey Branch, HSBC Bank plc, Guernsey Branch, HSBC Bank plc in the Isle of Man, HSBC Continental Europe, Greece, The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India), HSBC Bank (Vietnam) Limited, PT Bank HSBC Indonesia (HBID), HSBC Bank (Uruguay) S.A. (HSBC Uruguay is authorised and oversought by Banco Central del Uruguay), HBAP Sri Lanka Branch, The Hongkong and Shanghai Banking Corporation Limited – Philippine Branch, and HSBC FinTech Services (Shanghai) Company Limited (collectively, the “Distributors”) to their respective clients. This document or video is for general circulation and information purposes only.

 

The contents of this document or video may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. This document or video must not be distributed in any jurisdiction where its distribution is unlawful. All non-authorised reproduction or use of this document or video will be the responsibility of the user and may lead to legal proceedings. The material contained in this document or video is for general information purposes only and does not constitute investment research or advice or a recommendation to buy or sell investments. Some of the statements contained in this document or video may be considered forward looking statements which provide current expectations or forecasts of future events. Such forward looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors. HBAP and the Distributors do not undertake any obligation to update the forward-looking statements contained herein, or to update the reasons why actual results could differ from those projected in the forward-looking statements. This document or video has no contractual value and is not by any means intended as a solicitation, nor a recommendation for the purchase or sale of any financial instrument in any jurisdiction in which such an offer is not lawful. The views and opinions expressed are based on the HSBC Global Investment Committee at the time of preparation, and are subject to change at any time. These views may not necessarily indicate HSBC Asset Management‘s current portfolios’ composition. Individual portfolios managed by HSBC Asset Management primarily reflect individual clients’ objectives, risk preferences, time horizon, and market liquidity.

 

The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested. Past performance contained in this document or video is not a reliable indicator of future performance whilst any forecasts, projections and simulations contained herein should not be relied upon as an indication of future results. Where overseas investments are held the rate of currency exchange may cause the value of such investments to go down as well as up. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Economies in emerging markets generally are heavily dependent upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These economies also have been and may continue to be affected adversely by economic conditions in the countries in which they trade. Investments are subject to market risks, read all investment related documents carefully.

 

This document or video provides a high level overview of the recent economic environment and has been prepared for information purposes only. The views presented are those of HBAP and are based on HBAP’s global views and may not necessarily align with the Distributors’ local views. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination. It is not intended to provide and should not be relied on for accounting, legal or tax advice. Before you make any investment decision, you may wish to consult an independent financial adviser. In the event that you choose not to seek advice from a financial adviser, you should carefully consider whether the investment product is suitable for you. You are advised to obtain appropriate professional advice where necessary.

The accuracy and/or completeness of any third party information obtained from sources which we believe to be reliable might have not been independently verified, hence Customer must seek from several sources prior to making investment decision. 

 

Important Information about HSBC Global Asset Management (Canada) Limited (“AMCA”)

 

HSBC Asset Management is a group of companies, including AMCA, that are engaged in investment advisory and fund management activities, which are ultimately owned by HSBC Holdings plc. AMCA is a wholly owned subsidiary of, but separate entity from, HSBC Bank Canada.

 

Important Information about HSBC Investment Funds (Canada) Inc. (“HIFC”)

 

HIFC is the principal distributor of the HSBC Mutual Funds and offers the HSBC Mutual Funds and/or the HSBC Pooled Funds through the HSBC World Selection® Portfolio service. HIFC is a subsidiary of AMCA, and indirect subsidiary of HSBC Bank Canada, and provides its products and services in all provinces of Canada except Prince Edward Island. Mutual fund investments are subject to risks. Please read the Fund Facts before investing.

 

®World Selection is a registered trademark of HSBC Group Management Services Limited.

 

Important Information about HSBC Private Investment Counsel (Canada) Inc. (“HPIC”)

 

HPIC is a direct subsidiary of HSBC Bank Canada and provides services in all provinces of Canada except Prince Edward Island. The Private Investment Counsel service is a discretionary portfolio management service offered by HPIC. Under this discretionary service, assets of participating clients will be invested by HPIC or its delegated portfolio manager, AMCA, in securities, including but not limited to, stocks, bonds, mutual funds, pooled funds and derivatives. The value of an investment in or purchased as part of the Private Investment Counsel service may change frequently and past performance may not be repeated.

 

Important Information about HSBC InvestDirect (“HIDC”)

 

HIDC is a division of HSBC Securities (Canada) Inc., a direct subsidiary of, but separate entity from, HSBC Bank Canada. HIDC is an order execution only service. HIDC will not conduct suitability assessments of client account holdings or of the orders submitted by clients or from anyone authorized to trade on the client’s behalf. Clients have the sole responsibility for their investment decisions and securities transactions.

 

Important Information about the Hongkong and Shanghai Banking Corporation Limited, India (“HSBC India”)

 

HSBC India is a branch of The Hongkong and Shanghai Banking Corporation Limited. HSBC India is a distributor of mutual funds and referrer of investment products from third party entities registered and regulated in India. HSBC India does not distribute investment products to those persons who are either the citizens or residents of United States of America (USA), Canada, Australia or New Zealand or any other jurisdiction where such distribution would be contrary to law or regulation.

 

The following statement is only applicable to HSBC Bank (Taiwan) Limited with regard to how the publication is distributed to its customers: HSBC Bank (Taiwan) Limited (“the Bank”) shall fulfill the fiduciary duty act as a reasonable person once in exercising offering/conducting ordinary care in offering trust services/ business. However, the Bank disclaims any guarantee on the management or operation performance of the trust business.

The following statement is only applicable to PT Bank HSBC Indonesia (“HBID”): PT Bank HSBC Indonesia (“HBID”) is licensed and supervised by Indonesia Financial Services Authority (“OJK”). Customer must understand that historical performance does not guarantee future performance. Investment product that are offered in HBID is third party products, HBID is a selling agent for third party product such as Mutual Fund and Bonds. HBID and HSBC Group (HSBC Holdings Plc and its subsidiaries and associates company or any of its branches) does not guarantee the underlying investment, principal or return on customer investment. Investment in Mutual Funds and Bonds is not covered by the deposit insurance program of the Indonesian Deposit Insurance Corporation (LPS).

 

THE CONTENTS OF THIS DOCUMENT OR VIDEO HAVE NOT BEEN REVIEWED BY ANY REGULATORY AUTHORITY IN HONG KONG OR ANY OTHER JURISDICTION.

YOU ARE ADVISED TO EXERCISE CAUTION IN RELATION TO THE INVESTMENT AND THIS DOCUMENT OR VIDEO. IF YOU ARE IN DOUBT ABOUT ANY OF THE CONTENTS OF THIS DOCUMENT OR VIDEO, YOU SHOULD OBTAIN INDEPENDENT PROFESSIONAL ADVICE.

© Copyright 2023. The Hongkong and Shanghai Banking Corporation Limited, ALL RIGHTS RESERVED.

 

No part of this document or video may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of The Hongkong and Shanghai Banking Corporation Limited.

 

Important information on sustainable investing

 

“Sustainable investments” include investment approaches or instruments which consider environmental, social, governance and/or other sustainability factors (collectively, “sustainability”) to varying degrees. Certain instruments we include within this category may be in the process of changing to deliver sustainability outcomes.

 

There is no guarantee that sustainable investments will produce returns similar to those which don’t consider these factors. Sustainable investments may diverge from traditional market benchmarks.

 

In addition, there is no standard definition of, or measurement criteria for sustainable investments, or the impact of sustainable investments (“sustainability impact”). Sustainable investment and sustainability impact measurement criteria are (a) highly subjective and (b) may vary significantly across and within sectors.

 

HSBC may rely on measurement criteria devised and/or reported by third party providers or issuers.  HSBC does not always conduct its own specific due diligence in relation to measurement criteria. There is no guarantee: (a) that the nature of the sustainability impact or measurement criteria of an investment will be aligned with any particular investor’s sustainability goals; or (b) that the stated level or target level of sustainability impact will be achieved.

 

Sustainable investing is an evolving area and new regulations may come into effect which may affect how an investment is categorised or labelled. An investment which is considered to fulfil sustainable criteria today may not meet those criteria at some point in the future.

Your goals are unique to you. We’ll help you reach them – first by assessing your situation, then by helping you put a plan in place.
Forecast your future finances so you can better plan ahead with confidence and ease