Most Hongkongers underestimate the amount needed to retire, survey finds
More than 70 per cent of Hong Kong people have underestimated the funds that they would need for retirement, a University of Hong Kong survey conducted in the last quarter found.
The Retirement Survey of Hong Kong Kong Working Population by the university’s Public Opinion Programme, aimed to gauge how confident the working population is to realising their retirement plans, and their actual planning for retirement. It was targeted at Cantonese-speaking Hongkongers ranging from 20 to 55 years old.
The survey also found that more than 40 per cent of respondents had seriously underestimated the funds needed, with their projected retirement savings amounting to less than half of the actual amount required.
It calculated the actual retirement funds required by each of the respondents based on their expected retirement age and monthly retirement budget, and then compared this amount with their projected retirement funds.
“Respondents’ confidence level in realising their dream retirement life hit an all-time low, an average level of 5.2 out of 10,” said Jeanne Sau, senior vice president and chief marketing officer of MassMutual Asia, which commissioned the survey.
“The results indicated that respondents would need an average monthly retirement income of HK$14,799, hitting record high, and with an increase of 20 per cent from last year.”
With Hong Kong facing an increasing risk of rising prices, inflation was the biggest retirement worry, and about half of the respondents were considering moving to mainland China or Taiwan on retirement, the survey found.