Everyone is still entitled to dreams of early retirement, but the wake-up call of the recession has forced many to recognise the widening distance between dreams and reality. Rather than expecting to quit the workplace at 50 or 55, with a tidy nest egg and plans for nine holes a day, thoughts are turning instead to the possibility of having to work beyond 65 simply to build up sufficient financial resources to see out one's later years.
Already, in a number of Western countries, where state and corporate pension schemes are increasingly under-funded, moves are afoot to raise official retirement ages. In some cases, 70 is being suggested, made necessary by the fact that projected deficits for various government and company pension plans mean they could not otherwise meet long-term liabilities.
Hong Kong has traditionally been more laissez-faire, leaving workers to rely more on the so-called third pillar of retirement planning - individual savings. More recently, of course, there has also been the MPF. But few would claim the proceeds from this scheme could provide for someone's full financial needs through a lengthy retirement.
As a result, average workers in Hong Kong, burned by the economic downturn, are being forced to do some serious rethinking. They must contemplate the fact that life expectancies are increasing, assumptions about stock markets rising over time may be invalid, and that the return of inflation will likely eat away at savings.
'At the end of the day, if I need more money, I've got to keep working, but I don't see employers wanting to keep on all these 65-year-olds,' said Carl Redondo, general manager of Hewitt Associates in Hong Kong. 'So, people need to think long and hard about what work they could be doing if they postpone retirement and would be wise not to assume they can simply carry on as before for a few more years.'
He noted the two contrasting sides to the problem. Individuals may want to stay on longer but, in Hong Kong at least, there is no reason to think employers will be willing to keep them. Older staff may need the money, but their levels of enthusiasm and actual contribution in the workplace may be tailing off. Arguments can be made in favour of experience, industry contacts and willingness to mentor the next generation, but these often do not really stand up in the harsh light of day. Technology and workplace practices are changing so fast that skill sets easily become outdated and, in reality, passing on contacts and corporate know-how to a younger colleague takes no more than a six-month transition.