A worldwide study1 by HSBC Life, the insurance business of the HSBC Group, highlights the critical role resilience played in shaping a positive outlook and increased confidence to achieve long-term goals during a challenging year that has seen increased levels of stress, particularly fueled by financial uncertainty.
Launched in 2021 and conducted again this year, the HSBC Life +Factor Study surveyed more than 18,000 participants aged 18 to 80 in mainland China, Hong Kong, Singapore and the UK. This year, the study found that people are now more concerned about their financial situation (46% vs. 41% last year). Saving enough for retirement, the economic impact of the pandemic, and paying medical bills caused by illness rose in importance across markets as Covid-19 health concerns took a backseat.
Despite higher levels of stress, physical, mental, and financial resilience improved in 2022, as respondents paid more attention to a healthier and more balanced lifestyle, social interactions, and financial planning. The study found that respondents with high levels of resilience across all three dimensions are likely to improve overall well-being.
Greg Hingston, CEO, Global Insurance and Partnerships, HSBC Lifecommented: “The interconnection between the mental, financial and physical dimensions is clear. When one dimension improves, the others follow. When it comes to physical, mental and financial health, there is a combined effect. Together they bring confidence to achieve goals, increased happiness and satisfaction with the quality of life in general. Resilience drives wellness.”
behavior changePeople are responding to a post-pandemic world in a variety of ways: using digital tools more often, exercising more, managing their mental well-being, and planning their financial priorities.
In mainland China, the biggest behavioral change was physical: 50% of respondents said they are paying more attention to hygiene and exercise; while residents of Singapore (42%) and Hong Kong (45%) said they are now leading a more digital life and are embracing remote work norms. In the UK, the biggest change was in mental health (35%) with a greater focus on mental health management, more relaxation activities such as yoga or meditation to stay calm.
With economic uncertainties brought on by the COVID-19 pandemic, respondents in all markets have stronger investment planning and budget control. They also use digital financial tools to manage their finances and expenses.
People continued to pay attention to a healthier, more balanced lifestyle, with 61% agreeing that passing on healthy habits is more important than passing on wealth.
Resilience leads to a safer and happier lifeThe study defines resilience as the ability to adapt, overcome, and bounce back from mental, physical, and financial stress and challenges. Higher levels of resilience drive confidence in achieving goals, provide greater happiness (positivity, sense of belonging, and purpose), and higher life satisfaction. For example, 82% of people with high physical resilience are more confident to achieve their goals compared to 20% with low physical resilience. Four-fifths of people with high financial resilience said they were satisfied with their quality of life, the main determinant of happiness, compared to 22% of people with low financial resilience.
mainland chinaRespondents showed the strongest levels of confidence, happiness, and resilience. However, even as physical and financial health improved, mental health suffered. Financial situation, family responsibilities, lack of free time and a demanding job were mentioned as the main barriers for people with low levels of mental health. Respondents noted that a support network is a key factor for mental resilience.
Hong KongIn Hong Kong, levels of confidence (score of 71) and happiness (score of 68) increased from the previous year, despite recording the highest levels of stress (score of 68) caused by job uncertainty/ job. People are most concerned about their financial situation (75%) and only about a third of respondents said their high financial resilience was the result of better financial habits, confidence in using financial products/services, and having a retirement plan. retirement plan, legacy plan, and/or early childhood education fund.
SingaporeSingaporeans said they are most concerned about being diagnosed with a serious illness (32%) and the financial burden on family members if they need to care for them. Setting goals for oneself and confidence in the use of financial products and services are key drivers for mental and financial resilience, respectively.
United KingdomBeing happy and staying positive (66%) were the top motivators for mental resilience. When it comes to financial resilience, the ability to manage finances for a rainy day or retirement (48%) is cited as the biggest motivator. In view of this and with 91% of respondents saying they would first compare financial products before making purchase decisions and 90% saying they would first understand the product’s features, benefits and potential risks, it is not surprising that 80% of them have enough confidence to choose the financial products that fit their needs.
Resilient individuals are problem solvers and planners.Across markets, there was consensus on the building blocks of resilience. Highly resilient people anticipate and plan, solve problems, stay active, and have better financial habits.Higher levels of resilience are also enhanced by having protection, for example, having an insurance policy (life protection, medical/critical illness, and financial planning) compared to those with lower resilience.
Greg added, “This year, the lack of short-term and long-term financial security is one of the biggest stressors for people. But our +Factor survey shows that good planning with clear actions, goals, and behavior changes build a strong foundation for overall resilience and holistic wellness. As a global leader in bancassurance, we are advancing our health, wealth and protection capabilities while promoting financial education to improve mental, physical and financial health and help clients manage life’s uncertainties and achieve sustainable prosperity.” .
A report of key global findings from 2022 is available for download here.
