Attitudes towards retirement funds are changing as more people are becoming dependent on their savings.
People are more aware that the Mandatory Provident Fund (MPF) is a key way to save for retirement by using one's own savings and employer contributions.
However, those who have not started planning a long-term investment fund could be losing out and they are urged to find the right MPF, as there is a need to choose the right MPF scheme to support individual goals.
HSBC is the largest mandatory provident fund service provider in Hong Kong and, in an HSBC Asian Insurance Monitor survey, it found more than half of people in Hong Kong plan to fund their retirement using their own income, cash savings and investments. The survey also revealed that about 29 per cent of respondents expect their employers to contribute most of their retirement funds.
With worries over medical expenses, the growing cost of education and some wanting a better quality of life for their family, the line between short-term and long-term wealth goals is fast diminishing, making retirement saving more challenging.
The advice is to seek guidance to structure an MPF investment to one's own individual needs and to keep in mind that it is a long-term investment, and to build on a regular savings habit, choose products that have funds that allow them to maximise growth and cover a long-term investment.