Want to work until 70? If not, you better start saving a lot more, warns a survey of Hongkongers
- 65 per cent in survey would need to work until 70 to pay for living expenses without cutting back
- Hongkongers say they want to retire at 61, but many do not start retirement planning until 50 and rarely – or never – check their MPF accounts
Most Hongkongers have way too little socked away for retirement – and would have to work until 70 to keep up with their expenses, according to a new survey by AIA.
It found that 65 per cent of workers surveyed face a record high shortfall of HK$1.85 million (about US$240,000) in reserves needed to retire at their preferred age of 61.
The 65 per cent who will have insufficient reserves face two choices, the financial planner said: postponing retirement until 70 or reducing their monthly living expenses by HK$8,434.
Without saving more, and learning more about investments and post-retirement medical expenses, 91 per cent of Hongkongers will be forced into “pseudo-retirement,” working part time to cover their expenses after retirement, according to the survey of 1,001 respondents aged 18 to 65.
“Hong Kong people are living longer. To avoid spending their golden years worrying about finances, they should start retirement planning as early as possible and avoid relying on a single investment tool or being too aggressive or conservative,” said Elaine Lau, chief corporate solutions officer for AIA Hong Kong and Macau.