Financial fitness and mental wellbeing are linked (PHOTO: Getty Commercial)
From Bryce Johns
SINGAPORE – As we just celebrated World Mental Health Day, I was particularly concerned with how mental health not only affects how we think and feel, but also has a strong relationship with our physical and financial health. While several studies have been conducted on the former, we are only just beginning to discover the connections between our mental and financial fitness.
On the surface, more people are using their finances to increase their overall wellbeing. Just think of the wellness economy, which is currently valued at $ 4.5 trillion, according to the Global Wellness Institute. In the US, people spend about $ 287 a month on mental health alone.
But if you dig a little deeper, you see an even more complex connection. The UK’s Money and Mental Health Policy Institute found that people with mental health problems are at significantly greater risk of financial difficulties, which in turn can exacerbate mental health problems and prolong mental health recovery.
The HSBC Life + Factor study, which surveyed over 10,000 people in Singapore, Hong Kong, mainland China and the UK between March and April 2021, showed some interesting results.
Of those in Singapore with “very poor mental health”, only 15% felt they were financially very fit. Conversely, a majority of people in Singapore who identified themselves as having “above average mental health” rated “very fit” for their financial fitness.
This tells us that the better our mental health, the better our general financial fitness. When asked about their wealth and holistic wellbeing, 91% of people in Singapore said they needed to be mentally healthy to enjoy their wealth, while 80% felt that their mental health and financial condition were related.
Another element of the survey was an emerging health legacy that challenges the traditional concept of inheritance based solely on wealth and fortune. Given society’s increased focus on wellbeing – undoubtedly driven in part by the pandemic – people stated that their “legacy” is not just the wealth they pass on to the next generation, but healthy living habits as well.
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This health heritage phenomenon was common across all age groups in the study, but it was most pronounced at 81% in the 25 to 34 age group.
When it comes to ways to increase our mental wellbeing, the study found significant differences in levels of mental wellbeing between people who or who did not undertake long-term financial planning. Respondents who review their financial plan at least once a year tended to be in better mental health than they weren’t.
Of those with a comprehensive retirement plan, 80% said they had average or above average mental health. This is understandable as having a proper plan can help relieve additional stress for the future.
The pandemic has not only changed our lifestyle and behavior, it has also changed the way we think. It shed light on the importance of psychological wellbeing and how we deal with it as a society.
Now you need to wonder why a CEO of a global insurance company should be so concerned. Put simply: without health, one can no longer think of wealth – both physically and mentally. If your job is to protect people, how can you fail to consider the relationships between the core dimensions of wellbeing?
Mental wellbeing should be something we prioritize beyond World Mental Health Day, so I promise to speak to my family and friends about our holistic health, take stock of each component, and consider how they are connected.
I’m not only motivated to do this because it helps us do our best – financially, mentally, and emotionally – but also because our study identified a fourth dimension of holistic wellbeing: being people with above-average mental and financial health more susceptible to contributing to society. Not only do they donate to charity and get more involved in community events, they’re also more likely to invest in sustainable or ESG funds.
This underscores the fact that mental and financial health not only benefits individuals, but also has a greater impact on our contribution to society as a whole, which in turn enables us to live more fulfilling lives.
The Covid-19 crisis is a major call to build a better, more inclusive and more sustainable world. And it is important that we all do our part.
Bryce Johns is the Global CEO of HSBC Life and Insurance Partnerships, based in Hong Kong.
