Under the pressure of global exchange rate fluctuations and emerging trade wars, living expenses across Asia have been generally increasing. According to The Global Livability Ranking 2017 from The Economist Intelligence Unit (EIU), Hongkongers are shouldering 11% higher living expenses than New Yorkers, which significantly affects their ability to live a stable and prosperous life. To understand Hongkongers’ life aspirations and concerns, expectations for health protection and preparations for the future, AXA Hong Kong commissioned Nielsen, a marketing research company, to conduct its seventh annual “AXA Stability and Prosperity (S&P) Index” survey online from 13 April to 3 May 2018 with 1010 respondents aged 18-54 who have a monthly income of more than HK$15,000.

“The continued decline in the S&P Index indicates how Hongkongers are deeply concerned about their life prospects, not to mention the far-from-affordable prosperous life which requires HK$16 million to fulfill. Despite the rising living expenses for housing, medical and transportation, personal or family health issues still rank as the most important factor in achieving a stable and prosperous life.” Andrea Wong, Chief Marketing & Customer Officer, AXA Hong Kong.

"Some Hongkongers, who are without critical illness medical protection, have to cover the rising medical expenses from their personal savings. We believe the government’s Voluntary Health Insurance Scheme (VHIS) can help to fill the gaps. AXA Hong Kong supports the VHIS, which will help address the increasing healthcare needs in Hong Kong and improve access to private healthcare. We are actively reviewing the scheme, and will continue to develop products, services and technologies to help individuals enjoy longer and healthier lives.”  Andrea Wong

Is a "Prosperous" life just a dream?  The goal can only be reached in 80 years*.

In 2018, the AXA S&P Index dropped from 61 to 59, hitting a 7-year record low. This year, the median amount of money required for a stable life is HK$6.86 million, which is the 34-year median income for Hongkongers, while nearly one-fifth (18%) of respondents feel that they actually need HK$30 million to live a stable life. For a prosperous life, the median amount of money required has risen alarmingly by more than 70% (71%) to HK$16.21million, which is equivalent to 80 years of median income for a Hongkonger. Compared to the last six years, more respondents this year aim at achieving a stable life (63%) than a prosperous life (37%). 

Middle class families with 50K monthly income still feel their lives are unstable.  Plus, a drastic drop in life stability for post-80s females.  

More than 35% of respondents who feel “somewhat unstable” and “very unstable”** come from middle-class families with HK$50,000 monthly income or above, which indicates the middle class also shares the pressure brought by rising living costs. The survey revealed that only 28% of single respondents feel that they live a stable life, far lower than those who are married (36%). Females aged 25-34 stated least life stability (24%), the record low in the past three years, due to unfavourable working conditions, such as an unstable career (61%), long working hours (62%) and lack of opportunities to improve their financial condition (70%).

Rising living expenses remains the top concern for 4 consecutive years.

The survey reveals the top concerns of Hongkongers to be rising living expenses (83%), rising medical costs (72%), rising rents / property prices (71%) and lack of opportunities to improve financial conditions (61%). It also shows Hong Kong people value physical health over money as the primary factor in achieving a stable and prosperous life, followed by affluent personal savings and good family relations.

Over 30% of respondents find their medical protection insufficient.  VHIS to fill the protection gap.

Although good physical health was a top-pick in the survey, 33% of the respondents found their medical protection scheme insufficient. In addition, 66% of the respondents will bear the cost of any medical expenses from their own savings. Those with fewer liquid assets were found to have less personal or group medical protection, and were therefore also less-equipped to manage medical expenses.

The aging population in Hong Kong imposes an increasing burden on the public medical system, and it is increasingly important to have comprehensive medical protection. 15% of survey respondents suggested that the health protection plan should be raised to cover the age of insurance to 75 years. In the face of various social needs, through the upcoming implementation of VHIS by the government, it is believed that it can make up for the lack of public health protection and give the public one more viable choice to achieve a stable and prosperous life.