Cost of buying a home is main obstacle to retirement saving
Cost of buying a home is biggest obstacle for HK people to putting retirement cash away
Buying a flat has become the biggest obstacle to retirement saving for Hong Kong people, a survey by HSBC has found.
While the average pension pot is expected to cover only 11 years, those who do not have enough funds may be at risk of living six years beyond their retirement savings.
The survey on retirement savings, conducted in the third quarter of last year, polled more than 15,000 people in 15 countries and territories.
On average, Hong Kong respondents aspired to have HK$436,000 a year as the comfortable income in retirement, against HK$524,000 for current income. But more than half said they were not preparing enough for their retirement.
Asian respondents on average said they needed about HK$320,000 a year for a comfortable retirement.
With property prices rising, down payments have become a burden for homebuyers. Two in five Hong Kong respondents said buying a home or paying a mortgage was derailing their effort to save money, as were paying for children's education, pay cuts and the economic downturn.