22 April 2026
One of the most extensively studied examples of human behaviour is what’s commonly termed the knowledge-action gap. This refers to knowing that something is important and understanding why it matters, but still failing to do anything about it1.
This inertia is particularly evident when it comes to legacy planning. A recent HSBC Life survey of 908 high-net-worth individuals (HNWIs) across nine Asian and Middle East markets, found that while seven out of 10 respondents say they have high knowledge of legacy planning and understand the benefits of using tools such as insurance to achieve it, only four out of 10 actually have a formal plan in place.
This inaction could put HNWIs’ wealth at risk of an unexpected, painful and protracted process at the point of succession. By failing to safeguard their assets, HNWIs also expose themselves to market volatility, not to mention missing out on potential upside from further wealth accumulation during their lifetimes.
One explanation for the lack of action is that some HNWIs think they’re more knowledgeable than they really are. Our data show crucial omissions in respondents’ overall knowledge base, in particular around some of the key benefits of life insurance and integrated legacy planning.
Another reason is that life simply gets in the way. HNWIs with demanding businesses and busy family lives may feel they lack the time to arrange their legacy plans. Over the short term, it might be tempting to put planning on the back burner, even though the unintended consequences can be severe. However, forward and future planning provides peace of mind in the here and now, as well as wealth accumulation opportunities, delivering cash value growth, potential tax advantages, and sustainable wealth transfer across generations.
While nearly three-quarters of our survey respondents reported high knowledge about legacy planning, a deeper dive into the data highlights many nuances that undercut this surface-level confidence.
Our data also reveal that younger respondents feel the least knowledgeable of all: four out of 10 below the age of 40 don’t feel very knowledgeable compared to three out of 10 among those in their 40s and beyond. Yet, a thirst for knowledge among these younger HNWIs is high.
And once equipped with knowledge, younger HNWIs rapidly begin to put legacy plans in place. Those in their 30s are the least likely to delay planning.
“It really is the young who have the greatest awareness of the need for legacy planning,” says Swapan Khanna, Head of Strategy and Business Development, Insurance, HSBC Group. “This partly reflects the fact that they’re so receptive to gathering information and listening to advice. And it really bodes well for the future since this planning momentum should continue as they age.”
When it comes to wealth, there is a sizeable 14 percentage point knowledge gap between ultra-high-net-worth individuals (UHNWIs) with investable assets of more than USD10 million and respondents with USD2 million to USD5 million.
Wealth appears to act as an accelerator to acquire knowledge, which in turn prompts action. Our data show that the number of HNWIs who begin planning before the age of 50 rises from 65% to 80% once wealth crosses the USD5 million threshold.
Within the legacy planning toolkit, life insurance is by far the most popular solution, even beating wills. A total of 87% of HNWIs say they’re either using or considering life insurance compared to 82% for wills.
Overall, HNWIs also report broad knowledge about some of the key benefits too. This includes using life insurance for immediate liquidity (79%) or for privacy and confidentiality (77%). Even among the least knowledgeable of all, 61% still understand the concept of using it for liquidity.
Beyond this, HNWIs with lower knowledge levels start to hit a wall of complexity that puts them off taking action. They struggle with topics such as integrating insurance into other legacy structures, or using it to protect their family’s inheritance from business creditors or potential divorce settlements. More than half say they have little knowledge of either topic (53%). The same is true for structured charitable giving (55%).
Overall, more than half of all HNWIs say they don’t have enough knowledge about using life insurance for wealth transfer, the foundation stone of effective estate planning. This rises to three-quarters in markets such as Hong Kong, which reports lower knowledge levels.
Overcoming the knowledge-action gap is a two-step process. Firstly, it’s important to understand the exact reasons for inaction and then secondly, fill in any information gaps. Having a solid foundation of information is both a building block and a prompt for more effective decision-making. By doing so, it also helps build momentum, overcome procrastination and lessen the likelihood of feeling overwhelmed by the task at hand.
Our data back this up. Only 8% of the least knowledgeable have a legacy plan, for example, eight times lower than the most knowledgeable.
The data also reveal that usage of life insurance rockets from 29% among those who feel slightly knowledgeable to 69% among those who consider themselves experts. Uptake surges once the benefits are truly understood.
“What all these knowledge gaps highlight is the need for very clear and personalised advice,” concludes Alison Law, Chief Customer and Distribution Officer, Insurance, HSBC Group. “HNWIs want advisors who can cut through the jargon, understand their long-term goals and provide advice in an empathetic manner. Education is key but it should never be one-size-fits-all. Deeper knowledge will then not only propel planning, but also lead to more effective legacy planning.”
Remarks: A high-net-worth individual is defined as an individual possessing assets of USD 2 million or more, whereas an ultra-high-net-worth individual is classified as having assets of USD 50 million or above.
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