New HSBC research reveals the financial challenges of relocating abroad

International citizens are defined as anyone who is currently living, working or studying abroad; or planning to do so in the next 12 months, or returned from doing so in the last five years.

Ipsos has undertaken survey research on behalf of HSBC to understand how international citizens’ financial lives are evolving, their motivations for moving abroad, and issues they face as they settle into their new home. The research explores the experiences of a range of different international citizens, including expat families, digital nomads and overseas students.

Over half (53%) of survey respondents who have relocated agreed that they felt unsettled when they first arrived because they struggled to set-up important things like a bank account, utilities, and the internet; highlighting how complex financial admin can have a negative impact on their new experience. Without a bank account, they can struggle to secure a home – and without a fixed address, struggle to get children in schools.

Key concerns of those who have moved or plan to move overseas are:

• Almost three in five (56%) people surveyed, who have already relocated, agree that being unable to transfer their credit history led to struggles setting-up essentials, such as a mobile phone contract or credit card. Half (50%) planning to move overseas also agree that this is a concern for them.
• Among those planning to relocate, nearly half (46%) expect a cashflow crisis upon arrival; and just under half (45%) agreed that not knowing how to juggle financial life between locations was a concern - this jumps to 50% among international students.
• Almost three in five of the future relocators (59%) are concerned about the implications of paying taxes in a new country.

Motivations for moving

As inflationary pressures and the rising cost of living affects consumers in some countries and territories, HSBC finds a quarter (25%) of respondents are motivated to move to earn more money, and over a fifth (22%) move (or plan to move) to make their money go further. Yet one in two (51%) respondents who are planning to live, work, or study abroad say that nobody has helped them feel financially prepared to relocate.

A majority (62%) of respondents who are planning a big move, agree that finding the right financial services to suit their needs was a worry. This rises to over two thirds (67%) among digital nomads*.

Top reasons for relocating to work or study abroad among international citizens in the survey:

• Better lifestyle, such as improved health or social life    29%
• A better work/life balance    27%
• For increased salary / higher earnings    25%
• Opportunity to travel    24%
• Stability for my family    24%
• Learn new skills at work    23%
• To make my money go further    22%
• To live in a more sustainable environment    22%
• Explore and understand the culture of my new location    21%
• Accelerate career progression / job promotion    19%
• Improved technology means I can now work anywhere    18%
• To take advantage of more flexible remote working rules    17%

Detailed research methodology

This research was conducted by Ipsos on behalf of HSBC. Fieldwork took place between 05/12/22 and 23/01/23. 7,177 interviews were completed among adults aged 18+ who chose to take part in the survey, are currently living, working or studying abroad; or planning to do so in the next 12 months, or returned from doing so in the last five years. Or who are parents or guardians of international students of students aged 25 or under who are either currently studying abroad, or planning to study abroad in the next 12 months, or returned from studying abroad in the last 5 years.

A sub-set of 5,872 interviews were completed among international investors (aged 18+) who own at least one investment product overseas from this list: stocks and shares ISA (i.e. not a pension), investment funds, investment trusts, investment bonds, crypto-currencies in portfolio, Pension, or property (in addition to their main home).

Data collection took place online across nine countries and territories: Australia; Channel Islands & Isle of Man; Mainland China; Hong Kong; India; Singapore; United Arab Emirates; UK; USA.

The survey was available in English, traditional and simplified Chinese (for Mainland China and Hong Kong only), and Arabic (United Arab Emirates only).  Ipsos employed quota sampling, with quotas set on age and gender.

When looking at responses across the nine countries and territories, Ipsos used a ‘Country Average’ aggregate of all markets together.

Unweighted base sizes: