Although the city's retirement planning industry has evolved steadily in the past decade, becoming more tightly regulated with a broader array of products, a pension culture has yet to fully develop. Indeed, investors are savvier in their approach towards saving for the future, but few have yet to link retirement planning with their overall financial planning. 'There is greater knowledge and better information flow about financial planning, so people are focusing not on when to start the process but how to maximise their returns,' says Bonnie Tse, senior vice-president and managing director of AIA Pension and Trustee. 'However, many still think of the Mandatory Provident Fund as an aside that is not part of their investment portfolio. There is still some way to go before the gap between financial planning and retirement planning closes.' With life expectancy is projected to reach 90 for women and 83 for men by 2039, the ramifications of living and perhaps even working for longer are weighing heavily on the minds of those working today. A wider and more sophisticated product range, including unit trusts, life insurance and medical insurance, are emerging on the market, helping to address the broader fabric of wealth building. That is part of the reason why HSBC has, for instance, seen new premiums for life insurance grow sevenfold in the last decade as people seek greater financial independence for themselves and their families, says Francesca McDonagh, head of personal financial services at HSBC. Aside from product diversification, banks and insurers are also widening their services to meet the growing needs of all investors. Some companies are launching advanced e-platforms that allow investors to track their fund's performance and make changes easily. They are also offering an option that automatically adjusts the individual's balance of equity, bonds and guaranteed funds, based on predetermined requirements, Tse says. Although the automated option can help take care of your portfolio, since the financial downturn Tse said many have begun to take a more hands-on approach to managing their financial futures, having seen the volatility in the money markets first hand. 'The financial turmoil was a wake-up call in many ways. People are now reviewing their investment portfolios more regularly,' she adds. Despite maturation of the market, misconceptions still persist around retirement planning. Industry experts say many make the mistake of neglecting their financial futures because it feels too far off. 'People underestimate how soon they need to start the process; obviously, the earlier the better. A good time to begin is when you are in your early 30s,' says McDonagh. With companies placing greater emphasis on product research and development, the trend is expected to shift towards the launch of more income-generated products for post retirement to help retirees better manage their financial futures. 'People in Hong Kong can be quite speculative and with a lump sum, there is the danger that someone could use it all at once. An annuity product would pay you back in monthly instalments until you die,' says Rosetta Fong, chief executive of Convoy Financial Services. The company became the first publicly listed independent financial advisory firm in Hong Kong this July. Fong believes there is huge growth potential for independent financial advisories like hers. 'As an independent financial adviser, we have the flexibility to shop on open platforms for the best products that are most suitable for our clients, and we have no obligation to push certain products over others,' she explains.