Heaptalk, Jakarta — HSBC‘s latest research reveals that most wealthy individuals in Indonesia require US$340,000 for retirement, or about Rp5.37 billion (US$1 equals Rp15,796). Another finding is that 5 out of 10 affluent individuals in Indonesia plan to continue working into their older years.
Affluent individuals are those with investable assets ranging from US$100,000 to US$2,000,000. The HSBC Quality of Life Report captures insights from 11,230 affluent investors across 11 markets to understand what they consider a good quality of life. Indonesia and Taiwan have been added to this year’s research, making it more relevant to the local context.
The report explores the relationship between physical and mental wellness and financial fitness, highlighting people’s life priorities, wealth management preparedness, and financial planning and how these evolve across generations. It was presented during the HSBC Insight Day at the HSBC Indonesia office in South Jakarta (11/08). The event also featured Sumirat Gandapraja, HSBC Indonesia’s Head of Network Sales and Distribution, and Muara Makarim, a self-love and purpose coach.
Prioritizing health protection over retirement planning
According to the study, three factors shape the quality of life for affluent individuals: financial, physical, and mental health. These three factors are interconnected and influence one another, making them critical pillars for one’s quality of life.
“Based on the three aspects of quality of life summarized in the Quality of Life Report, we are actually trying to design solutions in response to what customers truly need. Therefore, there are three pillars we always try to evaluate, which include wealth management, lifestyle and wellness, and international education,” said Lanny Hendra, Director of Wealth and Personal Banking at HSBC Indonesia.
Another interesting finding is that affluent individuals in Asia, including Indonesia, prioritize retirement planning as one of their top three financial goals, following health protection and investment. Only a tiny percentage place inheritance planning in their economic plans, ranking it fourth.
Only a few customers as power planners
Based on these financial planning priorities, HSBC categorizes clients into three groups: basic planners, who have only planned a small portion of their finances (31%); proactive planners, who have planned part of their finances (50%); and power planners, who comprehensively plan their finances (19%).
According to Sumirat Gandapraja, financial planning is like building a house with a foundation, walls, and a roof. “We must have a dream and start thinking about how to build it. I see protection as the foundation. The second is wealth accumulation, as, with wealth accumulation, we can plan for our children’s education and manage funds for retirement. Only after that do we create the roof, which is usually a legacy for our children and grandchildren,” Sumirat explained in South Jakarta (11/07).
Muara Makarim, a self-love and purpose coach, emphasized the importance of financial planning for individuals, regardless of generational differences in financial planning patterns. “We need to create a vision of our life and goals. Every year, we tend to set goals, like what we want to achieve. I always advise them that finance should be included in those goals,” Muara concluded.
