Women face bigger shortfall than men when it comes to saving for retirement: JP Morgan survey
A JP Morgan Asset Management survey found that Hong Kong investors expect to save about HK$3.4 million, 17 per cent less than the HK$4.1 million required to maintain a comfortable lifestyle after they retire
Hong Kong women expect to save 29 per cent less for retirement than men and face a bigger shortfall in retirement costs even though their average life expectancy is longer, according to a JP Morgan Asset Management survey released on Tuesday.
Women still need 25 per cent more money than what they expect to have saved to maintain their current lifestyle through retirement, compared to a 14 per cent shortfall for men, the survey found. Over half of the survey respondents anticipate that their standard of living will be lower in retirement.
The average lifespan of a woman in Hong Kong is 87 years and 81 for men. Most women polled in the study also hope to retire at the age of 61 – two years earlier than men.
“Because women are living longer, they will ultimately become the financial decision-makers for their family. It is important for them to get involved with investment decisions early on,” Wina Appleton, retirement strategist for APAC at JP Morgan Asset Management, told the South China Morning Post.
The survey, which polled 500 Hong Kong-based retail investors between the ages of 30 and 60, showed that they overwhelmingly relied on stocks and cash savings to provide enough for retirement. Individual stocks are more risky than a balanced portfolio and savings accounts are unlikely to generate enough returns, according to Appleton.
Heman Wong Kwong-ming, chief executive of the Pension Schemes Association, agreed that most people need a balanced portfolio to accumulate enough money for retirement and recommended that people educate themselves on economics to stay informed on market conditions.