In the face of this, the Hong Kong government is reviewing public hospital services and charges, and encouraging the provision of health care by the private sector.

One of the key risks at retirement is that an individual might outlive his or her retirement income. And although people realise that life expectancy is increasing, they don't truly appreciate its cost implications, according to Bonita Leong, vice-president, marketing and finance, individual financial products at Manulife (International).

'Medical inflation has been quoted by some sources to be as high as 7 per cent per annum,' she said.

'More publicity around the costs of hospitalisation and what it would be if it were private might help people see the combined impact of longevity and medical costs as they get older.'

Several factors make the requirements for health care in retirement different from other wealth management needs. One obvious point is that the older people get, the more likely they are to be less fit.

Buying medical insurance at an older age costs more because the chances of things going wrong are higher, and medical issues tend to be chronic, and often continue over time. For example, according to medical statistics, a person who is 60 is four times more likely than an average person below that age to enter hospital. And when a person aged over 60 goes into hospital, he or she tends to stay there three to four times longer.

AXA China Region Insurance's Retirement Scope survey, now in its third year in Hong Kong, found that of the 45 per cent of those surveyed aged over 30 who had medical insurance, 23 per cent considered it somewhat/quite insufficient or not sufficient at all, and only 11 per cent of them would consider purchasing additional medical insurance.

These findings support what many in Hong Kong's life insurance industry are saying is a need to educate people about providing enough for medical cover, and the need to approach younger people about retirement planning.

'Long-term care has become more relevant as people are living longer. So we have to make sure our clients are aware of all the facts and various options that apply when planning to purchase long-term health care coverage. One strategy is to urge clients to sign up for long-term-care insurance once they turn 50 or 55,' said Francine Fu, AXA China Region Insurance's chief marketing officer.

In general, most insurance players may provide cover for a long period, but they are less willing to accept older people and may not provide insurance to someone who has had a chronic ailment that makes them uninsurable.

In the event that an older person can get cover, the insurance company may increase the loading or put in place many exclusions.

People who take out health-care insurance earlier get better rates and flat premiums.

Advisory professionals point out several key steps for people to follow to provide for retirement and as much of the medical and health-care issues that accompany it.

First, they should have a health care plan in place as soon as possible.

Second, they should be investing their MPF payment sensibly. For example, an investment instrument that gives an income yield while the capital is being protected would be one way to prolong income.

Others include annuity products, which can cover the risk of longevity if the payout is for life.

Third, putting in place insurance for risks that could happen both before and during retirement would go a long way towards protecting a nest egg from erosion as a result of a medical mishap.