Key takeaways:
- Almost half of affluent women (46%) want to invest to achieve financial security, according to HSBC Quality of Life Report 2024.
- There is a shift happening with new generations: younger affluent women globally are more engaged in their finances, e.g. reviewing their plans or seek advice, especially Gen Z who are the most engaged generation of women.
- It’s positive that younger women may be prioritising their money management, as they will have increased life expectances and need to build their financial foundation.
Wealth never stands still, and nor does the world’s approach to it. HSBC polled 5,616 affluent women as part of its Quality of Life Report 2024 and it’s clear that globally many of them today are managing their wealth in different ways to previous generations, often showing more engagement with a greater range of financial products and services.
Women are also building more wealth today than in the past, and in different places. In 2022, women in Asia overtook Europe to hold more wealth than anywhere else outside North America.
And their goal is clear: according to our research underlying the HSBC Quality of Life Report 2024, 46% of respondents say achieving financial security is their top reason to invest.
Generational shifts
Generational differences in how women approach their finances are some of the most striking aspects of the discussion around women and wealth today.
Younger affluent women globally, especially Gen Z, are notably more engaged with finance. According to our research, they spend more time reviewing their financial plans, are more likely to seek professional advice, use more financial products and track their investments more closely.
One basic reality makes it invaluable that women prioritise investing and wealth management: life expectancy is increasing every year. It stands at 75.9 years for women today, but Gen Z will live even longer, with life expectancy rising to above 80 years by 2050. This has many implications, including the longer retirements that women will need to finance.
Regional Differences
Whilst this shift can be observed globally, there are regional nuances however.
In Singapore, Malaysia, Hong Kong and mainland China, it appears that younger affluent women are potentially generally more financially fit but in the UAE and India, for instance, the pattern is likely to be reversed with financial fitness perhaps growing stronger with age.
It’s the first step that counts
We believe knowledge is the key to enabling women to build their wealth. Knowing what information and resources are on offer is a good first step.
Women tell us how important it’s to have access to resources that will support their financial decision-making at any stage of life......Whether by assessing financial literacy or identifying areas of improvement, the tools we offer are designed to help our customers unlock their financial potential and stay on course with their plans.
Lavanya Chari, Head of Wealth and Premier Solutions
This continuum – knowledge, leading to better-informed decisions, and then to better financial outcomes – is the lens through which we look at our wealth offering. This enables us to help our customers add to their knowledge and unlock the connections they need to invest in the future they see for themselves, whenever their starting point.
We often find that we can build on the success that women are already having in building their financial knowledge. In the UK, for example, we see that women account for 58.5% of users of our “Saving Goals” financial education programme.
At HSBC, we have tools that cater for different needs and various stages in our customers’ wealth-building journeys.
That’s where our Future Planner comes in. It's a mobile-first financial planning tool that allows you to identify and prioritise your aspirations in order of importance, from now until retirement.
But what makes Future Planner special is that you can set clear targets for each aspiration and see how much the projected shortfall or surplus is. This amount is based on factors like Inflation Rate and Annual Growth Rate according to your declared risk level, amongst others. Future Planner also allows you to seamlessly take the next steps by investing digitally or face-to-face financial planning sessions with our Relationship Managers.
For instance, you can get started by increasing your financial fitness with the support of our dedicated articles or learn to invest with our dedicated series, available in Malaysia.
One reason we’re so passionate about this topic is that financial well-being is so important to our overall well-being. Life may be unpredictable, and that’s part of what makes it exciting. But by preparing for uncertain times, we’re better positioned to handle challenges that may come our way.
Lavanya Chari, Head of Wealth and Premier Solutions
Dreams matter too
But that is only part of the story. Think back to the goal women gave us – financial security. That desire is the start of everything, because it means having the resources to fulfil your dreams, not just deal with challenges.
We recognise that different generations of women have different needs when it comes to managing their finances – and have different dreams and ambitions. Those could be securing the perfect first property, putting their children through university, or funding a retirement that lets them do more than just pay the bills.
At HSBC, we can help with financial planning or portfolio advice that adapts to our customers’ changing needs throughout their lives. Regular portfolio reviews are a great way to ensure that you are still on track to meet your goals.
We’re excited to be alongside you on the journey, helping you manage your finances so that your wealth can help you achieve your dreams.
That journey starts with knowledge. Where it ends is up to you.