70% of Chinese High-Net-Worth-Individuals (HNWIs) interested in retirement townships.
Healthcare facilities are the key factors for the success of premium retirement townships development.
On 24 September 2015, the Retirement Planning and Healthcare of Chinese HNWIs 2015 report is released through Hurun Report. This 60-page report is based on a study of 1119 High Net Worth Individuals (HNWIs) from 35 regions across China, and 40 one-to-one interviews with HNWIs in the first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen. It highlighting the needs and concerns of the Chinese HNWIs on retirement planning and healthcare.
According to the report, 70% of HNWIs interested to know more about the high-end retirement township development. Among all requirement, Professional Healthcare ranks as the most important consideration.
Individuals with CNY 10 million grow a record high.
Hurun Report also mentioned that, as of May 2015, there were 1.21 million mainland Chinese individuals with personal wealth of CNY 10 million or more, an increase of 120,000 from the previous year, a record growth rate of 11%. There are total assets of US$9.5 trillion possess by these 1.21 million of mainland China’s HNWIs.
Based on the population size of Chinese HNWIs, the market development of premium insurance products, healthcare solutions and needs of the aged is expected to grow fast.
In addition, the Individuals with CNY 10 million are only 40 years old on average, whilst the average age of individuals with CNY 100 million is 44. The male to female ratio is 6:4. The average annual disposable income marked at US$400,000 per household, or US$470 billion in total disposable annual income.
The survey also revealed that 98% of respondents managing their wealth through cash deposits and real estate investments. Followed by Insurance and financial investment products, preferred by more than 70% of Chinese HNWIs. The other choices are to invest in art (31%) and 20% in VC/PE.
Apart from work, HNWIs in China are most interested in financial investments. Recommendation from friends or relatives is the main source of information.
Most HNWIs buy insurance as a safety net rather than as an investment tool.
90% of China’s individuals with CNY 10 million currently own life insurance products. The average premium paid by each individual is US$5,800, and the total annual premium paid by the HNWIs group reached US$6.3 billion, constituting 4% of China’s total life insurance purchases.
Of HNWIs who owned life insurance products, 90% purchased medical insurance, 82% endowment insurance, and 73% accident insurance. This indicates that most HNWIs buy insurance as safeguard approach rather than an investment tool. Among the 90% who own life insurance, they recognized its importance, scoring it on average 7.9 out of 10. The wealthier they were, the more importance HNWIs place on life insurance.
An important factor influencing HNWIs to buy life insurance is recommendations from relatives and friends. This is also their most frequently consulted and most trusted channel for obtaining life insurance information. As their age increases, their level of trust and reliance on this channel grows. Other channels of information include insurance companies, official websites and sales persons.
The value-added services that HNWIs expected the most from insurance companies are health checks and fitness programs. Experts felt that life insurance companies should strengthen their value-add services prior to case of incidents, rather than pending for insurance claims.
More than 70% of respondents expressed their great interest in premium retirement townships.
Among the respondents, 45% believed they would move into these townships. Males are more interested than females and the younger the respondents, the higher the interest on retirement townships.
The professionalism of healthcare facilities and personnel of these retirement townships is the main factor to attract attention of HNWIs. Follows next are food & beverages, regular body check-up, leisure activities, natural environment and fitness facilities, with the ratio of average reaching 50%.
Individuals with wealth CNY 100 million’ concerns are slightly different. They care more for natural environment, followed by professional healthcare personnel, food & beverages, medical treatment facilities and care during recovery. This group of HNWI pay more attention on factors related to medical treatment and wellness.
The report shows a surprising discovery that friends were more in demand than children for companion after retirement. Therefore, the tradition of three generation living together under one roof will soon undergo a change. The ideal retirement place for HNWIs is no longer the busy downtown. Instead, residential districts with sound infrastructure facilities, near by natural environment are more preferred. The HNWIs are more prefer to tour & travel, enriching their lives in old age. With this in mind, it shows that these HNWIs have higher expectations regarding to the quality of their retirement lives, desiring a richer spiritual level.
HNWIs have various financial resources for retirement expenditure, with 90% spending their personal savings or investment balances. While financial source from property, pension and commercial endowment insurance make up more than 60% each. An average of 2.7 people per family purchased commercial endowment insurance, with average annual premiums of CNY 150,000. Moreover, for a commercial endowment insurance value added service, HNWIs generally want to enjoy premium healthcare services, including body check-up, health management, and suitable dietary plans.
The Needs for Private hospitals and private doctors continue to increase rapidly.
Public hospitals are the first choice for HNWIs seeking for medical solutions, especially those level III public hospitals. It is predicted that Chinese HNWIs are mostly inclined to try private hospitals in the next three years, with 54% choosing Chinese private hospitals and 48% international private hospitals.
Currently, the percentage of HNWIs consulting private doctors is very low, at just 5% and 8% of individuals with CNY100 million wealth. However, the overall satisfaction level with private doctors reached a high level of 80%, with more than half of them being rated “Very Satisfied”.
In addition, the survey shows that the HNWIs are concern about the level of advancement of the medical facilities, specialization, the physicians’ experience and the reputation of medical centres. Next follow by the classification level of the hospitals, the overall quality of services and the geographical location. Individuals with CNY 100 million place more emphasis on doctors’ level of attentiveness.
The percentage of HNWIs buying health insurance has hit 80%. The cash flow guarantee during critical illness is the main reason they purchase health insurance, with a proportion of 70%. Individuals with wealth worth CNY 100 million comparatively have higher consciousness towards wellness and medical treatment, their desire to buy health insurance is more than 50%.
The “Retirement Planning and Healthcare of Chinese HNWIs 2015” report is jointly released by Taikang Life and Hurun Report Inc. Article above published on Monde Journal in collaboration with Hurun Report Inc.
于2015年9月24日， 通过胡润研究院发布 发布了《2015中国高净值人群医养白皮书》（Retirement Planning and Healthcare of Chinese HNWIs 2015）。 这份60页的专业报告是中国首份针对高净值人群养老和医疗需求的专业报告。调查结果来源于对1119位中国大陆高净值人士的定量研究，以及对北京、上海、广州和深圳四个城市的40位高净值人士和专家的一对一定性深入访谈。该白皮书显示超七成高净值人群对中高端养老社区感兴趣，而医疗成为决定中高端养老社区成败的关键所在。
《2015中国高净值人群医养白皮书》由泰康人寿与胡润研究院联合发布。Monde Journal 配合发布以上文稿。
《2015中国高净值人群医养白皮书》由泰康人寿与胡润研究院联合发布。Monde Journal 配合发布以上文稿。