LABOUR

Three in five Hongkongers can't afford their desired lifestyles after retirement

PUBLISHED : Tuesday, 08 April, 2014, 4:05am
UPDATED : Tuesday, 08 April, 2014, 5:09am

About three in five Hongkongers will not have built a retirement nest egg fit for funding their desired lifestyles by the time they stop working, a survey shows.

Respondents hoped to retire at age 60.7 on average, up from 59.4 last year - but the extra earnings still leave them a far cry from meeting their retirement plans.

Instead, they will have to delay retirement by an average of eight years or cut their desired living expenses by 57 per cent to HK$4,705 a month, pollsters say.

"Perhaps they underestimate their retirement needs, or allocate relatively lower amounts to monthly savings or investments, or rely heavily on savings or time deposits," Stephen Fung, chief executive of AIA Pension and Trustee, said yesterday.

Fung's company commissioned market research firm Cimigo to survey 1,103 people from December to January. The results were released after the government's suggestion last week to delay the retirement age of newly hired civil servants from 60 to 65 to cope with an ageing population and shrinking workforce.

In the poll, the desired retirement reserves of respondents fell about 30 per cent from last year to HK$4.3 million. But the desired living expenses fell only close to 10 per cent, to HK$11,814 a month.

This means about 60 per cent of the respondents will not have enough savings to lead the kind of life they want after retirement.

 

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