A survey by a Mandatory Provident Fund provider shows that Hongkongers' readiness for retirement has dropped this year compared with 2010.
The retirement survey, designed by Fidelity Worldwide Investment, shows the Retirement Readiness Index of Hongkongers this year has slipped and expectations and attitudes towards retirement are not realistic enough.
Fidelity says the survey interviewed 857 men and women in Hong Kong, aged 25-65, who are the financial decision-makers of their households, in April and May.
It says the aim is to understand their attitudes and approaches towards retirement and investment, and measure the usage penetration of pension schemes and the monthly contributions.
It also aims to find out about Hongkongers' awareness and attitude towards the forthcoming Employee's Choice Arrangement.
The report reveals a widening gap between the retirement amount needed and that to be achieved by Hongkongers, from a shortfall of HK$1 million in 2010 to HK$1.4 million this year, translating to a decrease of Retirement Readiness Index from 54.2 per cent to 50.2 per cent. In order to meet the savings shortfall, a majority of people (75 per cent) would prefer saving or investing more, followed by choosing to work after retirement (32 per cent). About 28 per cent would even choose to retire at a later age, the survey shows.